Small savings interest rates retained for next quarter: Fin Ministry
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New Delhi: The Union government kept the interest rates on small saving schemes such as NSC (National Savings Certificate and PPF (Public Provident Fund) unchanged for the second quarter of 2021-22 as relief for savers as the pandemic is still at large. For PPF and NSC, the annual rates of 7.1% and 6.8%, respectively, will continue in the second quarter.
On Wednesday, the Finance Ministry said in a statement that the rates of interest on various small saving schemes for the second quarter of the financial year starting from July 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.
On April 1, the government, citing oversight, had suddenly revoked a steep interest rate cut of up to 1.1% on small savings for the first quarter. Thus, the first quarter rates were retained at the level of the fourth quarter of the previous financial year. The cut was noted as the steepest in decades. Interest rates regarding small saving schemes are notified quarterly.
The statement further said that the one-year term deposit scheme would continue receiving 5.5% interest rates during the second quarter of the current fiscal. Meanwhile, the girl child savings scheme Sukanya Samriddhi Yojana account will receive 7.6% interest.
The interests rate on the five-year senior citizens' savings scheme would remain at 7.4%, which is paid quarterly. The interest rate of savings deposits will be retained at 4% per annum. Term deposits of 1 to 5 years will earn an interest rate of 5.5 to 6.7%, while five-year recurring deposits will earn a higher interest of 5.8%.
