The government has withdrawn its decision to cut the interest rate of small savings schemes announced late evening of March 31.
Finance Minister Nirmala Sitharaman in a tweet said “Interest rates of small savings schemes of Government of India shall continue to be at the rates which existed in the last quarter of 2020-2021, i.e., rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn”
The decision of cuts in interest rates of schemes ranging from the National Savings Certificates, Public Provident Fund and Senior Citizen Savings Scheme had shaken millions of middle class depositors in the country.
| Instruments | Rate of interest from January 1, 2021 to March 31, 2021 |
| Savings Deposit | 4.00% |
| 1 Year Time Deposit | 5.50% |
| 2 Year Time Deposit | 5.50% |
| 3 Year Time Deposit | 5.50% |
| 5 Year Time Deposit | 6.70% |
| 5 Year Time Deposit | 5.80% |
| Senior Citizen Savings Schemes | 7.40% |
| Monthly Income Account | 6.60% |
| National Savings Certificate | 6.80% |
| Public Provident Fund Scheme | 7.10% |
| Kisan Vikas Patra | 6.90% |
| Sukanya Samriddhi Account Scheme | 7.60% |
