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A reprieve, for now
Senior citizens can heave a sigh of relief on small savings rates
We’ll never know whether the Finance Ministry’s rapid U-turn on the rate reset for small savings schemes was someone’s idea of an April Fool prank or a rethink triggered by, ahem, political considerations. Whatever the reason, small savers can heave a sigh of relief that they’ve won a reprieve from the 50 to 110 basis point cuts, for now. Had they gone through, retirees would have had to take a 13 per cent haircut on their interest income from the Senior Citizens Savings Scheme, others a 14 per cent dent on the Monthly Income Scheme and 1-year depositors a 20 per cent hit to their interest receipts.
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