Big hit on small savings, govt cuts rates, PPF rate hits 46 year low

A rough start for savers as the govt has cut small savings rate across the board for the period April-June.

The interest rate on PPF will be 6.4 per cent instead of 7.1 per cent per annum while for the Senior Citizen Savings Scheme, the interest rate has been fixed at 6.5 per cent instead of 7.4 per cent per annum. The 5-year Monthly Income Account Scheme will offer 5.7 per cent instead of 6.6 per cent payable monthly. On the 1-year time deposit, the rate of interest stands at 4.4 per cent while on the 5-year deposit, the rate will remain 5.8 per cent per annum.

The biggest cut is on the 1-year deposit where the new rate stands lower by 1.1 per cent now at 4.4%.