The government today cut the interest rates payable on small savings including Public Provident Fund, PPF and Kisan Vikas Patra KVP to align them closer to market rates. The interest rate on PPF scheme will be cut from 8.7 per cent to 8.1 per cent from 1st of April. According to a Finance Ministry order, the interest rate on KVP will also be cut to 7.8 per cent from 8.7 per cent.However, the interest rate on Post Office savings has been retained at 4 per cent. The five-Year National Savings Certificates will earn an interest rate of 8.1 per cent as against 8.5 per cent at present. Five-year Monthly Income scheme will fetch 7.8 per cent as against 8.4 per cent now. Girl-child saving scheme, Sukanya Samriddhi Yojana will see a rate cut of 8.6 per cent as against 9.2 per cent.Senior citizen savings scheme of five-year has also been slashed to 8.6 per cent.The post office term deposit rates of one to five years have also been cut. The new rates will remain in force till 30th of June and will reviewed and notified on quarterly basis.