Interest charges on small financial savings obtained an enormous lower on Wednesday with the federal government asserting curiosity on financial savings deposit will now be down from 4 per cent to three.5 per cent yearly, whereas Public Provident Fund or PPF will likely be down from 7.1 per cent to six.4 per cent.
Govt cuts rates of interest on small financial savings wef from April 1
Savings deposit revised from 4% to three.5%,yearly.
PPF fee down from 7.1% to six.4%,yearly.
1 yr time deposit revised from 5.5% to 4.4%,quarterly.
Senior citizen financial savings schemes fee down from 7.4% to six.5%,quarterly&paid pic.twitter.com/x05Hko3vho
— ANI (@ANI) March 31, 2021
This is the second time the federal government has lower rates of interest on small financial savings schemes previously one yr. In the April-June quarter of 2020-21, the federal government had slashed charges of small financial savings schemes by 70-140 bps (100 bps = 1 per cent).