Millennium Post

Govt cuts PPF rate, small savings slashed by 10 bps

The government on Monday reduced the interest rate on Public Provident Fund (PPF) from 8.8 per cent to 8.7 per cent. The new rate will come into effect from 1 April. It also lowered the rate on other small savings schemes with maturity of two years or more by 10 basis points.

This includes fixed deposit (FD) and recurring deposit (RD) as well as National Savings Certificates (NSC). A one-year time deposit will now fetch the investors an interest at the rate of 8.2 per cent, against 8.3 per cent earlier. Five-year NSC and 10-year NSC will give a rate of return of 8.5 per cent and 8.9 per cent, respectively. Senior citizens savings scheme (SCSS) will offer the highest rate of interest at 9.2 per cent. Monthly Income Schemes of five-year maturity will earn an interest of 8.4 per cent. Interest on savings deposit and one-year term deposit remains unchanged at 4 per cent and 8.2 per cent, respectively.

Slamming the government’s move, West Bengal chief minister Mamata Banerjee said: ‘These are all anti-people decisions. The agonies of common people continue unabated.’

The Left labelled it as a ‘disastrous decision.’ CPI leader Gurudas Dasgupta said the UPA government has taken an utterly ‘disastrous decision.’ His colleague D Raja said, ‘This decision will have a huge impact on employees, who focus on post-retirement benefits.’
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