Delivering a shock to the investors in the small saving schemes, the government has slashed interest rates on a couple of schemes that investors have been using to build their social security funds or saving for the rainy day. This was done few days after introduction of annual budget.
The government has cut the interest rate on Public Provident Fund from 8.7 percent to 8.1 per cent.
Interest rate on Kisan Vikas Patra has also been slashed to 7.8 percent from 8.7 percent.
The interest rate on one-year time post office deposit has been cut to 7.1 percent from 8.4 percent
The rate on two-year time post office deposit has also been slashed to 7.2 percent from 8.4 percent.
Interest rate on three -year time post office deposit has been cut to 7.4 percent from 8.4 percent.
The rate on 5-year time post office deposit is cut to 7.9 percent from 8.5 percent.
The rate cut on 5-year national saving certificates is 8.1 percent.
Interest rate on 5-year senior citizen scheme interest rate has been slashed to 8.6 percent from 9.3 percent.
Interest rate on girl child scheme has been slashed to to 8.6 percent from 9.2 percent.
The interest rate on postal savings deposits, though, has remain unchanged at 4 percent