Reduction in interest rate on small savings, rate on small deposits also reduced from 4 percent to 3.5 percent
The interest rate has been cut on small savings. The government announced on Wednesday that it has been decided to reduce the annual interest rate from 4 percent to 3.5 percent on small deposits. The PPF interest rate has also been reduced from 7.1 per cent to 6.4 per cent per annum. The interest rate on deposits of one year duration has been worked out from 5.5% to 4.4% (quarterly / quarterly). In this series, under the Senior Citizen Saving Scheme, the interest rate has been reduced from 7.4% to 6.5% (quarterly / quarterly).
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
It is worth noting that earlier the government had not made any change in the interest rates on small savings schemes including PPF and NSC for the January-March 2021 quarter. The annual interest rates for the Employees Provident Fund (PPF) and National Savings Certificate (NSC) were maintained at 7.1 per cent and 6.8 per cent respectively. The interest rates for small savings schemes are notified by the Ministry of Finance on a quarterly basis.