The government has slashed interest rates payable on small savings including Public Provident Fund and Kisan Vikas Patra (KVP) in a bid to align them closer to market rates.

• The interest rate on Public Provident Fund (PPF) scheme will be cut to 8.1 per cent for the period April 1 to June 30, from 8.7 per cent, at present.
• Similarly, the interest rate on KVP will be cut to 7.8 per cent from 8.7 per cent.
• While the interest rate on post office savings has been retained at 4 per cent, the same for term deposits of one to five years has been cut.
• The popular five-year National Savings Certificates will earn an interest rate of 8.1 per cent from April 1 as against 8.5 per cent, at present.
• A five-year Monthly Income Account will fetch 7.8 per cent as opposed to 8.4 per cent now.
• Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 per cent as against 9.2 per cent.
• Senior citizen savings scheme of five-year would earn 8.6 per cent interest compared with 9.3 per cent.
• Post Office term deposits of one, two and three years command an interest rate of 8.4 per cent but from April 1, a 1-year Time Deposit will get 7.1 per cent, 2-year Time Deposit will earn 7.2 per cent and 3-Year Time Deposit will attract interest of 7.4 per cent.
• Five-year Time Deposit will fetch 7.9 per cent interest in the first quarter as against 8.5 per cent, while the same on five-year recurring deposit has been slashed to 7.4 per cent from 8.4 per cent.