Govt withdraws interest rate cut in small savings schemes, calls it oversight
The interest rates on such schemes will continue to remain as they were during January-March, reversing Wednesday’s highest cut of 1.1 per cent.
The government on Thursday kept the interest rates of small saving schemes including PPF and NSC unchanged for the January-March quarter.
Interest rates for small savings schemes are notified by the Finance Ministry on a quarterly basis.
“The rates of interest on various small savings schemes for the fourth quarter of 2020-21 ending on March 31 shall remain unchanged from those notified for the third quarter (October 1-December 31, 2020)”, the Finance Ministry said in a notification.
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1. Public Provident Fund (PPF) and National Savings Certificate (NSC): The two will continue to carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively.
2. Senior Citizens Savings Scheme: The interest rate for the five-year has been retained at 7.4 per cent. The interest on the senior citizens’ scheme is paid quarterly. Interest rate on savings deposits has been retained at 4 per cent annually.
3. Girl child savings scheme Sukanya Samriddhi Yojana: It will offer 7.6 per cent rate during the third quarter of the current fiscal.
4. Kisan Vikas Patra (KVP): The annual interest rate on the scheme has been retained at 6.9 per cent.
Term deposits of 1-5 years will fetch an interest rate in the range of 5.5-6.7 per cent, to be paid quarterly, while the interest rate on five-year recurring deposit is pegged at 5.8 per cent.
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