Interest Rate Reduction and Personal Savings and Retirement Enhancement Act

Interest Rate Reduction and Personal Savings and Retirement Enhancement Act - Declares that: (1) within 90 days after enactment of this Act, the rediscount rate of the Federal Reserve Board will be no higher than 11 1/2 percent; (2) within 180 days after enactment it will be no higher than nine-and-one-half percent; and that (3) for an additional 180 days it will remain no higher than that, at least until June 30, 1981.

Amends the Internal Revenue Code to allow a tax credit equal to seven percent of the amounts paid by an individual during the taxable year (not to exceed $126, or $252 for a married individual filing a joint return) for the purchase of special emergency savings certificates. Limits such credit to the purchase of certificates of deposit issued by a savings bank with a face value of $50 or $100, bearing interest at either five percent (for a $50 certificate) or six percent (for a $100 certificate), for a term of one year. Requires purchase of such certificate within 180 days after enactment of this Act.

Increases the deductible amount of contributions by or on behalf of an individual to an individual retirement savings account from 15 percent to 20 percent, with an increased maximum amount of $2,000 for single individuals, $2,400 for married individuals. Repeals the current prohibition on participation in other retirement programs.

Allows the transfer of funds from special emergency savings certificates to individual retirement accounts within the first 360 days after enactment of this Act.