The big question about small savings schemes’ interest rate cut
Since April 2016, interest rates of all small saving schemes have been linked to government bond yields and are now recalibrated on a quarterly basis. Over the last couple of years, interest rates of most small savings schemes has witnessed a decline of about 1 percentage point . For instance, the interest rate on Senior Citizen Savings Scheme has come down from 9.3% in FY2015-16 to 8.3% now.