No Change In Interest Rate For The Second Quarter On Small Savings Schemes

Business Desk, Amar Ujala, New Delhi

Published by: Kuldeep Singh
Updated Thu, 01 Jul 2021 12:59 AM IST

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In a decision to give satisfaction to the savers, the government has kept the interest rates on small savings schemes like National Savings Certificate (NSC), Public Provident Fund (PPF) unchanged for the second quarter starting July 1.

In the second quarter (July to September) of the current financial year, the interest rate on NSC will remain 6.8 percent and PPF at 7.1 percent per annum.

According to a notification issued by the Ministry of Finance on Wednesday, the rate of interest on various small savings schemes during the second quarter of the financial year 2021-22, starting on July 1, 2021, and ending on September 30, 2021, during the current first quarter (April 1) 2021 to 30 June 2021) will remain at the rates applicable.

The government had earlier on April 1 withdrew immediately the 1.1 percent reduction in the interest rate of small savings schemes for the first quarter, saying it was a mistake. Due to this the interest rates for the first quarter remained at the rates of the fourth quarter of the previous financial year. This cut, which was withdrawn by the government, was described by many as the biggest cut in the last several decades.

The interest rates on small savings schemes are reviewed every quarter. The interest rate on one-year fixed deposit scheme will remain at 5.5 per cent during the second quarter. At the same time, interest on the girl child savings scheme ‘Sukanya Smridhi Yojana Account’ will continue to be available at the rate of 7.6 percent per annum. 7.4 percent interest will be payable on the five-year Senior Citizens Savings Scheme. At the same time, the rate of interest on savings deposits will remain at 4 percent per annum.

In a decision to give satisfaction to the savers, the government has kept the interest rates on small savings schemes like National Savings Certificate (NSC), Public Provident Fund (PPF) unchanged for the second quarter starting July 1.

In the second quarter (July to September) of the current financial year, the interest rate on NSC will remain 6.8 percent and PPF at 7.1 percent per annum.

According to a notification issued by the Ministry of Finance on Wednesday, the rate of interest on various small savings schemes during the second quarter of the financial year 2021-22, starting on July 1, 2021, and ending on September 30, 2021, during the current first quarter (April 1) 2021 to 30 June 2021) will remain at the rates applicable.

The government had earlier on April 1 withdrew immediately the 1.1 percent reduction in the interest rate of small savings schemes for the first quarter, saying it was a mistake. Due to this the interest rates for the first quarter remained at the rates of the fourth quarter of the previous financial year. This cut, which was withdrawn by the government, was described by many as the biggest cut in the last several decades.

The interest rates on small savings schemes are reviewed every quarter. The interest rate on one-year fixed deposit scheme will remain at 5.5 per cent during the second quarter. At the same time, interest on the girl child savings scheme ‘Sukanya Smridhi Yojana Account’ will continue to be available at the rate of 7.6 percent per annum. 7.4 percent interest will be payable on the five-year Senior Citizens Savings Scheme. At the same time, the rate of interest on savings deposits will remain at 4 percent per annum.

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