PPF, NSC, FDs rates to be cut

Not a good news !

PPF, NSC rates to be cut; bank FDs may fetch lower interest

Senior Citizens, Women Likely To Be Protected

A report in Times of India says :

The government is set to reduce interest rates on small savings products such as PPF and NSC over the next few days – a move that will impact returns on your bank FDs but also pave  the way for banks to pare lending rates in the coming months and reduce the EMI burden.

The new formula will see small savings rates linked to returns on Govt Securities of comparable maturity, with the reduction expected to be up to 0.5 %. The finance ministry is finalizing product-specific rates and sources said the impact would be higher in case of maturity period of less than five years. There are indications that senior citizens and women will be protected.