The government on March 31 slashed interest rates on small savings schemes, including National Savings Certificate and Public Provident Fund, by up to 1.4% for the first quarter of 2020-21, in line with the moderation in bank deposit rates.
Interest rates for small savings schemes are notified on a quarterly basis.
With the reduction, term deposits of 1-3 years will now fetch an interest of 5.5% from the existing 6.9%, down 1.4%, according to a notification by the Finance Ministry.
Interest rates are paid quarterly, while the five-year term deposit will earn 6.7%, down from the current rate of 7.7%.
