Technology

Interest Rates Cut on PPF, NSC, Other Small Savings Schemes Withdrawn, Announces FM Nirmala Sitharaman. Top Points

Interest Rates Cut on PPF, NSC, Other Small Savings Schemes Withdrawn, Announces FM Nirmala Sitharaman. Top Points

NEW DELHI: In a cheer for common people, the Central government today decided to withdraw cut in small savings interest rates, Union Finance Minister Nirmala Sitharaman tweeted on Thursday morning. She has underscored that interest rates on small savings will be retained at level of fourth quarter of the last financial year. The revised rate of Interest on small savings schemes such as PPF, NSC, were to be effective from April 1, 2021 but now the rates of interest will remain same as those were on March 31, 2021. Also Read – IPL: ‘Spaceship Has Landed’ as AB de Villiers Joins Royal Challengers Bangalore Bio-Bubble

“Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn,” FM Sitharaman tweeted. Also Read – Breaking: Multiple People Killed After Shooting Incident In Southern California

  • Notably, interest rates for small savings schemes are notified on a quarterly basis. The Central government on Wednesday cut interest rates on small savings schemes, including NSC and PPF, by up to 1.1 per cent for the first quarter of 2021-22 in line with falling fixed deposit rates of banks.
  • However, following the announcement by FM Sitharaman, the interest rates will be restored to the level of March 31, 2021. This means current rate of interest on Savings deposit will continue to be 4 per cent.
  • The 1-year Time deposit interest rate will remain at 5.5 per cent.
  • The 2-year time deposit interest rate will remain unchanged at 5.5 per cent.
  • The 3-year time deposit will continue to be 5.5 per cent.
  • The 5-year time deposit interest rate will be 6.7 per cent.
  • The 5-year recurring deposit interest rate will be 5.8 per cent.
  • The Senior Citizen Savings Schemes interest rate will remain as 7.4 per cent.
  • Monthly Income Account interest rate will be 6.6 per cent.
  • National Savings Certificate  rate of interest will be 6.8 per cent.
  • Public Provident Fund Scheme or PPF interest rate will be 7.1 per cent.
  • Kisan Vikas Patra interest rate will be 6.9 per cent with maturity tenure of 124 months.
  • Sukanya Samriddhi Account Scheme interest rate will remain t 7.6 per cent.

Scheme New Interest Rate % (April 1, 2021) Rate of Interest % (March 31, 2021)
Savings Deposit 4.0 4.0
1-Year Time Deposit 5.5 5.5
2-Year Time Deposit 5.5 5.5
3-Year Time Deposit 5.5 5.5
5-Year Time Deposit 6.7 6.7
5-Year Recurring Deposit 5.8 5.8
Senior Citizen Savings Schemes 7.4 7.4
Monthly Income Account 6.6 6.6
Public Provident Fund Scheme 7.1 7.1
National Savings Certificate 6.8 6.8
Kisan Vikas Patra 6.9 6.9
Sukanya Samriddhi Account 7.6 7.6

Earlier, interest rate on Public Provident Fund (PPF) was reduced by 0.7 per cent to 6.4 per cent while National Savings Certificate (NSC) will now earn 0.9 per cent less at 5.9 per cent. The proposed interest rate on PPF was the lowest since 1974. According to reports, the PPF interest rate was 7 per cent between August 1974 and March 1975. Prior to that, the rate was 5.8 per cent. Also Read – IT Dept Detects Rs 700 Crore Tax Evasion After Raids on Hyderabad-based Realty Developers

The rates of interest on various small savings schemes for the first quarter of the financial year 2021-22 starting from April 1 and ending on June 30, 2021, has been revised, the finance ministry said in a notification yesterday.

The interest rate for the five-year Senior Citizens Savings Scheme has also been reduced steeply by 0.9 per cent to 6.5 per cent. The interest on the senior citizens” scheme is paid quarterly.

For the first time interest rate on savings deposits has been reduced by 0.5 per cent to 3.5 per cent from the existing 4 per cent annually.

The steepest fall of 1.1 per cent has been effected in the one-year term deposit. The new rate will be 4.4 per cent as compared to 5.5 per cent at the moment.

Similarly, two-year fixed deposit will earn 0.5 per cent less at 5 per cent, three-year term deposit rate will be down by 0.4 per cent and five- year term deposit rate will be lower by 0.9 per cent at 5.8 per cent.

The girl child savings scheme Sukanya Samriddhi Yojana account will offer 0.7 per cent lower rate at 6.9 per cent rate during the first quarter of the next fiscal.

The annual interest rate on Kisan Vikas Patra (KVP) has been reduced by 0.7 per cent to 6.2 per cent from 6.9 per cent.

While announcing the quarterly setting of interest rates in 2016, the finance ministry had said that rates of small savings schemes would be linked to government bond yields.

Last month, the Reserve Bank of India (RBI) kept interest rates static for the fourth time in a row at 4 per cent on inflationary concerns.


#Interest #Rates #Cut #PPF #NSC #Small #Savings #Schemes #Withdrawn #Announces #Nirmala #Sitharaman #Top #Points

Leave a Comment