New Delhi, March 31 (IANS) A big cut in small savings schemes will deliver a blow to savers who depend on these schemes for income and social security. Conversely, this will reduce interest rates, bring down the cost of capital and spur capex and stock markets. The government revised the interest rates on small savings with effect from April 1 with a massive cut on Wednesday. The interest on savings deposit will be cut from 4 per cent to 3.5 per cent annually, while Public Provident Fund (PPF) is down from 7.1 per cent to 6.4 per cent. Similarly, 1 year time deposit has been cut from 5.5% to 4.4% quarterly. The senior citizen savings schemes rate is cut from 7.4% to 6.5%. The interest rate on National Savings Certificate has been cut from 6.8 per cent to 5.9 per cent, Sukanya Samridhi Yojana from 7.6 per cent to 6.9 per cent and Kisan Vikas Patra from 6.9 per cent to 6.2 per cent.