Big shock: Small savings, reduction in interest rates on FD and PPF get lower interest rates, learn new rates

By cutting interest rates on small savings, the government has hit the general public with a big blow. Interest rates for elderly savings plans have been deducted from savings accounts, PPF and FD. The new rates are effective April 1.

Annual interest on deposits in savings accounts has been reduced from 4 per cent to 3.5 per cent. The Public Futures Fund (PPF) has so far received an annual interest rate of 7.1 per cent, down from 6.4 per cent. The quarterly interest rate on a one-year deposit has been reduced from 5.5 per cent to 4.4 per cent. The elderly now receive only a quarterly interest on savings plans instead of 7.4 per cent.