Govt Cuts Interest Rates on Small Savings From 4% to 3.5% With Effect From April 1; Provident Fund Rate Down by 0.7%

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News18» News»India»Govt Cuts Interest Rates connected Small Savings From 4% to 3.5% With Effect From April 1; Provident Fund Rate Down by 0.7%

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File photograph  of Union Finance Minister Nirmala Sitharaman.

File photograph of Union Finance Minister Nirmala Sitharaman.

Public Provident Fund Scheme involvement rates person besides been slashed to 6.4 per cent from the earlier complaint of 7.1 per

  • News18.com New Delhi
  • Last Updated:March 31, 2021, 22:11 IST
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The authorities connected Wednesday chopped involvement rates connected tiny savings schemes, including NSC and PPF, by up to 1.1 per cent for the archetypal 4th of 2021-22 successful enactment with falling fixed deposit rates of banks. Interest complaint connected Public Provident Fund (PPF) has been reduced by 0.7 per cent to 6.4 per cent portion National Savings Certificate (NSC) volition present gain 0.9 per cent little astatine 5.9 per cent.

Interest rates for tiny savings schemes are notified connected a quarterly basis. The rates of involvement connected assorted tiny savings schemes for the archetypal 4th of the fiscal twelvemonth 2021-22 starting from April 1 and ending connected June 30, 2021, has been revised, the concern ministry said successful a notification.

The involvement complaint for the five-year Senior Citizens Savings Scheme has besides been reduced steeply by 0.9 per cent to 6.5 per cent. The involvement connected the elder citizens’ strategy is paid quarterly. For the archetypal clip involvement complaint connected savings deposits has been reduced by 0.5 per cent to 3.5 per cent from the existing 4 per cent annually.

The steepest autumn of 1.1 per cent has been effected successful the one-year word deposit. The caller complaint volition beryllium 4.4 per cent arsenic compared to 5.5 per cent astatine the moment. Similarly, two-year fixed deposit volition gain 0.5 per cent little astatine 5 per cent, three-year word deposit complaint volition beryllium down by 0.4 per cent and five- twelvemonth word deposit complaint volition beryllium little by 0.9 per cent astatine 5.8 per cent.

The miss kid savings strategy Sukanya Samriddhi Yojana relationship volition connection 0.7 per cent little complaint astatine 6.9 per cent complaint during the archetypal 4th of the adjacent fiscal. The yearly involvement complaint connected 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 mounting of involvement rates successful 2016, the concern ministry had said that rates of tiny savings schemes would beryllium linked to authorities enslaved yields. Last month, the Reserve Bank of India (RBI) kept involvement rates static for the 4th clip successful a enactment astatine 4 per cent connected inflationary concerns.

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