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Govt sharply cuts small savings rates, PPF to get just 7.1% now Last Updated : 31 Mar 2020 09:53:47 PM IST 
Reserve Bank of India The government on Tuesday steeply cut interest rates on various small savings schemes in line with sharp cut in policy rates announced by the Reserve Bank of India on Friday where it reduced repo rate by 75 basis points.
Accordingly, rate on interest on small savings schemes such as the Kisan Vikas Patra, the National Savings Certificate, the Senior Citizens Savings Scheme and the Public Provident fund (PPF) scheme has been revised downwards between 70 basis points and 140 basis points for the first quarter (April-June) of FY 20 20-21.Interest rates on the PPF and the Sukanya Samriddhi Yojana have been cut by 0.8 per cent or 80 bps each. Post office time deposits have seen the sharpest cut of 1.4 per cent or 140.The PPF scheme that is subscribed by millions of salary earning class will get you an annual return of just 7.1 per cent as against 7.9 per cent earlier. Senior citizens will also have to do with just 7.4 per cent interest rate from the earlier 8.6 per cent. Even, the popular five year recurring deposit will get you just 5.8 per cent now.
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