The government on March 31, 2020 announced a steep cut in the interest rates on small savings schemes for the first quarter (April to June 2020) of FY 2020-21. Interest rates on various small savings schemes have been cut by between 70 basis points and 140 basis points (100 basis points = 1 %).
Interest rates on the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana have been cut by 0.8% or 80 bps, each. Post office time deposits (of certain tenors) have seen the sharpest cut of 1.4 per cent or 140 bps. After the latest reduction, the PPF will earn 7.1 per cent (down from 7.9 per cent), Sukanya Samriddhi Yojana 7.6 per cent (down from 8.4 per cent), and the time deposits will earn 5.5-6.7 per cent for the April-June quarter.