Finance
By: Shree1news, 01 JUL 2021
New Delhi:
In a relief to savers, the government on Wednesday kept rates of interest on small savings schemes, including NSC and PPF, unchanged for the second quarter of 2021-22 amid the COVID-19 pandemic. Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to hold an annual rate of interest of 7.1 per cent and 6.8 per cent, respectively, in the second quarter as well.
“The rates of interest on various small savings schemes for the second quarter of the financial year 2021-22 starting from July 1, 2021, and ending on September 30, 2021, shall remain unchanged from the current rates applicable for the first quarter (April 1, 2021 to June 30, 2021) for FY 2021-22,” the finance ministry stated in a notification.
The government had on April 1 swiftly revoked a steep rate of interest reduce of up to 1.1 per cent for the first quarter on small savings schemes, citing oversight.
As a result, the first quarter rates were retained at the level of the fourth quarter of the last financial year. The cut was touted as the steepest cut in many decades.
Rates of interest for small savings schemes are notified on a quarterly basis.
One-year term deposit scheme will continue to earn an rate of interest of 5.5 per cent through the second quarter of the current fiscal, whereas the girl child savings scheme Sukanya Samriddhi Yojana account will earn 7.6 per cent.
The rate of interest on the five-year senior citizens savings scheme would be retained at 7.4 per cent. The interest on the senior citizens” scheme is paid quarterly.
Rate of interest on savings deposits will continue to be 4 per cent per annum.
Term deposits of 1 to 5 years will fetch an rate of interest in the range of 5.5-6.7 per cent, to be paid quarterly, whereas the rate of interest on five-year recurring deposits will earn a higher interest of 5.8 per cent.
Source:A-N
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