Government Slashes Small Saving Interest Rates: PPF Rates Drop to 7.1% – Compare & Apply Loans & Credit Cards in India

On March 31, 2020, the government announced a steep cut in the interest rates on small saving schemes. Public Provident Fund (PPF) will now fetch 7.1% interest rate for Q1 2020-21 (April to June). Likewise, interest rates on other saving schemes like Sukanya Samriddhi Yojana and National Savings Certificate also dropped by 0.8% and 1.1% respectively.

This reduction in the interest rates is not favourable for the fixed income investors and especially for the senior citizens who rely upon this interest income as a major source of income. 

Here is the percentage change in the Small Saving schemes interest rates-

Name of the Scheme Interest Rates April to June (2020-21) Interest Rates January to March (2019-20)
Public Provident Fund 7.1% 7.9%
Sukanya Samriddhi Yojana 7.6% 8.4%
National Savings Certificate 6.8% 7.9%
Kisan Vikas Patra 6.9% 7.6%
5 Year Monthly Income Account 6.6% 7.6%
Senior Citizen Savings Scheme 7.4% 8.6%

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