Since 2016, the government has linked the small savings deposit rate with the benchmark Government Securities (G-Sec) rate.
For the January-March quarter, the government had reduced interest rates on such schemes by 0.2 percentage points.
Accordingly PPF and NSC fetch a lower annual rate of 7.6 per cent, while KVP gives 7.3 per cent yield. The girl child savings scheme, Sukanya Samriddhi, offers 8.1 per cent annually.
Term deposits of 1-5 years have a lower interest rate of 6.6-7.4 per cent to be paid quarterly, while the five-year recurring deposit is pegged at 6.9 per cent.