On March 31, 2020, the government announced a steep cut in the interest rates on small saving schemes. Public Provident Fund (PPF) will now fetch 7.1% interest rate for Q1 2020-21 (April to June). Likewise, interest rates on other saving schemes like Sukanya Samriddhi Yojana and National Savings Certificate also dropped by 0.8% and 1.1% respectively.
This reduction in the interest rates is not favourable for the fixed income investors and especially for the senior citizens who rely upon this interest income as a major source of income.
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Here is the percentage change in the Small Saving schemes interest rates-
| Name of the Scheme | Interest Rates April to June (2020-21) | Interest Rates January to March (2019-20) |
| Public Provident Fund | 7.1% | 7.9% |
| Sukanya Samriddhi Yojana | 7.6% | 8.4% |
| National Savings Certificate | 6.8% | 7.9% |
| Kisan Vikas Patra | 6.9% | 7.6% |
| 5 Year Monthly Income Account | 6.6% | 7.6% |
| Senior Citizen Savings Scheme | 7.4% | 8.6% |