Interest will be reduced on savings accounts, govt has released new interest rate

 

New Delhi: The government on Wednesday cut the interest rates on small savings schemes including Public Provident Fund (PPF) and NSC (National Savings Certificate) by up to 1.1 percent. This deduction has been made for the first quarter of 2021-22 starting April 1. This step has been taken in line with the trend of decreasing interest rate. According to the Finance Ministry notification, interest on PPF has been reduced by 0.7 percent to 6.4 percent, while on NSC, it has been reduced by 0.9 percent to 5.9 percent.

Senior citizens will also get less interest

Interest on small savings schemes is notified on a quarterly basis. According to the notification, the interest rates on various small savings schemes have been revised for the first quarter April-June of the financial year 2021-22. The interest rate on the five-year Senior Citizen Savings Scheme has been reduced by 0.9 percent to 6.5 percent. Under this scheme interest is paid on quarterly basis. For the first time, interest on deposits in savings account has been reduced by 0.5 percent to 3.5 percent. Till now it used to get 4 percent interest annually.

Sukanya Samriddhi account holders also loss

The interest on the Sukanya Samriddhi Yojana account for girls has been reduced from 0.7 per cent to 6.9 per cent for the first quarter of 2021-22. The annual interest rate on Kisan Vikas Patra has been reduced by 0.7 percent to 6.2 percent. Till now the interest on it was 6.9 percent. In 2016, the Finance Ministry announced the fixing of the interest rate on a quarterly basis, saying that the interest on small savings schemes will be linked to the returns of government bonds.

Those investing in these schemes also suffer losses

Maximum 1.1 percent reduction in interest has been made on one-year term deposits. Now the interest on it will be 4.4 percent, which was 5.5 percent till now. Similarly, interest on term deposits for two years has been reduced by 0.5 percent to 5 percent, interest on term deposits for a period of three years has been reduced by 0.4 percent, while interest on term deposits for five years has been reduced by 0.9 percent to 5.8 percent. Has gone.