The government on Wednesday cut the interest rate on small savings schemes by 0.2 percentage points. Interest rates in the five-year Senior Citizens Savings Scheme, however, has been retained at 8.3%. A finance ministry notification said interest rates have been reduced across several small savings schemes but that for savings deposits has been retained at 4% annually. Since April 2016, interest rates of all small saving schemes have been recalibrated on a quarterly basis, but there was no change in small savings interest rates in the October-December quarter. “On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis,” the finance ministry said, adding that rates of small savings schemes would be linked to government bond yields.

Source: Mint December 27, 2017 15:00 UTC