Interest charges on small financial savings obtained an enormous reduce on Wednesday with the federal government asserting curiosity on financial savings deposit will now be down from 4 per cent to three.5 per cent yearly, whereas Public Provident Fund or PPF might be down from 7.1 per cent to six.4 per cent.
From 1 April, National Savings Certificate (NSC) will get an curiosity of 5.9 per cent and the Sukanya Samriddhi Yojana will fetch an rate of interest of 6.9 per cent.
The rate of interest for the five-year Senior Citizens Savings Scheme has been lowered to six.5 per cent. The curiosity on the senior residents’ scheme is paid quarterly. The rate of interest on Kisan Vikas Patra (KVP) has been reduce to six.2 per cent.
Govt cuts rates of interest on small financial savings wef from April 1
Savings deposit revised from 4% to three.5%,yearly.
PPF fee down from 7.1% to six.4%,yearly.
1 yr time deposit revised from 5.5% to 4.4%,quarterly.
Senior citizen financial savings schemes fee down from 7.4% to six.5%,quarterly&paid pic.twitter.com/x05Hko3vho
— ANI (@ANI) March 31, 2021
The rate of interest on put up workplace financial savings deposits has been struck down to three.5 per cent whereas time period deposits of one-to-five years will fetch rate of interest within the vary of 4.4-5.1 per cent, to be paid quarterly and the rate of interest on five-year recurring deposit might be 5.8 per cent.
This is the second time the federal government has reduce rates of interest on small financial savings schemes up to now one yr. In the April-June quarter of 2020-21, the federal government had slashed charges of small financial savings schemes by 70-140 bps (100 bps = 1 per cent).
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