New Delhi| In a circular released by the Ministry of Finance, the interest rate for saving deposits has been slashed by as high as 1.4 percent. 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 (8.4 per cent), and the time deposits will earn 5.5-6.7 per cent for the April-June quarter.
The Economic Survey had earlier suggested that the interest rates on the small savings schemes be reduced to bring them in consonance with the interest rates prevailing in the economy.
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