The Ministry of Finance has cut the interest rates cut on a variety of savings schemes, including Small Saving Schemes, for the financial year 2021-22. After this deduction, the interest on Public Provident Fund (PPF) has reached a low of 47 years.
New Delhi. The central government has given another blow to the common man already facing financial difficulties in the midst of Corona crisis. In fact, the Finance Ministry has cut the interest rates available on a variety of savings schemes, including small savings schemes, for the financial year 2021-22. The central government has reduced the interest rates on small savings schemes from 4 per cent to 3.5 per cent. The new rates will be effective from 1st April 2021 on the first day of the new financial year.
Interest on PPF will be the lowest in 47 years after the deduction
The Ministry of Finance has made major cuts in Public Provident Fund (PPF). Now the annual interest on PPF has come down from 7 per cent to 6.4 per cent. Explain that after 1974, for the first time after 47 years, the government will pay less interest on PPF. Apart from this, the Center has reduced the interest on one-year deposits from 5.4 per cent to 4.4 per cent and on 2 to 5-year recurring deposits by 0.5 per cent. Interest on recurring deposits will now be at the rate of 5% to 5.8%, which was earlier from 5.5 to 6.7%.
Govt cuts interest rates on small savings wef from April 1
Savings deposit revised from 4% to 3.5%,annually.
PPF rate down from 7.1% to 6.4%,annually.
1 yr time deposit revised from 5.5% to 4.4%,quarterly.
Senior citizen savings schemes rate down from 7.4% to 6.5%,quarterly&paid pic.twitter.com/x05Hko3vho
— ANI (@ANI) March 31, 2021
The biggest cut in interest on one-year deposits
The central government has reduced the interest on Senior Citizens Saving Scheme from 7.4 percent to 6.5 percent.
Now, instead of 6.9 percent interest will be given on the Kisan Vikas Patra.
Interest on Sukanya Samriddhi Yojana has been reduced from 7.6 per cent to 6.9 per cent.
National Savings Certificate (NSC) will now get 5.9 percent interest instead of 6.8 percent.
This is the second time in 1 year, when the interest rate for small savings schemes has been cut. However, the government had not made any change in interest rates in the last 3 quarters.
The central government has cut the maximum on 1-year time deposit. A big cut of 1.1 percent has been made in its interest rates.