Soon, you may not get return benefits on your savings

As the government is set to announce a slew of reforms, one of them may not attract you much.

The government plans to lower down interest rates on saving products like PPF, National Savings Certificate (NSC) and the bank FDs may also attract lower interest.

The move by the finance ministry will impact people who take maturity period of less than five years. However, it is speculated that women and senior citizens will b exempted with savings plans like Sukanya Samriddhi Yojana.

Meanwhile, the RBI wants the banks to follow suit and follow the small savings rate cut with lower fixed deposit rates.

RBI says the PPF and other plans gave higher returns as compared to fixed deposits. This has, in turn, forced banks to maintain higher deposit rates.