New Delhi: The Finance Ministry has decided not to make any change in the interest rate available on small savings schemes. In a decision, the government did not change the interest rates on small savings schemes like NSC, PPF for the second quarter starting July 1. In the second quarter (July to September) of the current financial year, the interest rate of 6.8 per cent on NSC and 7.1 per cent per annum on PPF will remain. These interest rates are higher as compared to fixed deposits and recurring deposits.
The government had earlier on April 1 withdrew immediately the 1.1 per cent 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 last financial year. This cut, which was withdrawn by the government, was described by many as the biggest cut in the last several decades.
7.6% interest rate on ‘Sukanya Smridhi Yojana Account’
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 per cent per annum. 7.4 percent interest will be payable on the Senior Citizens Savings Scheme for five years. At the same time, the rate of interest on savings deposits will remain at four percent annually.
In a notification issued by the Ministry of Finance on Wednesday, it has been said, “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, for the current first quarter (April 1) 2021 to 30 June 2021) will remain at the rates applicable.
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