New Delhi, Dec 27: Government on Wednesday lowered the interest rates on small saving schemes by 0.2 percent. The ministry of finance, in its notification, said the people investing in savings scheme will get lesser interests from the next quarters. The rates for savings schemes are reviewed per quarter. The rates remained unchanged in the previous quarter of October-December. The move will prompt banks to lower deposit rates. Also Read - SBI Home Loan Gets Cheaper As Bank Reduces Interest Rates, Waives Processing Fee Till March 31

The ministry decided to keep 8.3 per cent interest rate for five-year Senior Citizens Savings Scheme. “Interest rates have been reduced across several small savings schemes but that for savings deposits has been retained at 4% annually,” stated ministry notification. Also Read - Is it Mandatory For Govt Employees to Avail 20-day Earned Leave? Govt Issues Clarification

Public Provident Fund and National Saving Certificate will fetch a lower annual rate of 7.6 per cent whereas Kisan Vikas Patra will get investors at 7.3 per cent and mature in 11 months. The girl child savings scheme Sukanya Samriddhi Account will offer 8.1 from existing 8.3 per cent annually. Also Read - 7th Pay Commission Latest News: Centre Relaxes Local Travel Reimbursement Rules For These Govt Employees | Check Details Here

The scheme remains a flagship scheme of the Modi government.  Term deposits of 1-5 years will fetch 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.