Government cuts interest rate by 0.10 percent on PPF and Small Savings

New Delhi/March 25
In yet another shocker for general public who are already reeling under rising prices, the Central government today decided to cut interest rates on small saving and Public Provident Fund (PPF) by 0.10 percent, applicable from April 1.
In a statement, Union Finance ministry today said that the government has decided to reduce interest rates on the basis of recommendations of Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF) and the interest rates for small saving schemes will to be notified every financial year.
From April 1, the interest rates on PPF has been reduced from 8.8 percent to 8.7 percent. The interest rates on small savings schemes and fixed deposit of upto two year run in post offices has also been reduced by 0.10 percent, however, interest rate on saving deposit and saving deposit for upto one year remains the same, the Finance ministry said.
The Monthly Income Schemes (MIS) of 5 year maturity, National Savings Certificates (NSC) having maturity of five and 10 years, senior citizens savings schemes will also attract 0.10 percent less interest in 2013-14 financial year.