New Delhi: The government on Thursday kept interest rates on small savings schemes, including NSC and PPF, unchanged for the third quarter of 2021-22, amid the COVID-19 pandemic and high inflation levels.
public provident Fund (PPF) and national savings certificate (NSC) will continue to have an annual interest rate of 7.1 per cent and 6.8 per cent respectively.
“The rates of interest on various small savings schemes for the third quarter of the financial year 2021-22 commencing from October 1, 2021 and ending on December 31, 2021, will remain unchanged from the current rates applicable for the second quarter (June). 2021 to September 30, 2021) for the financial year 2021-22,” the Finance Ministry said in a notification.
According to analysts, the upcoming Uttar Pradesh assembly elections could also be a factor behind the government’s decision to keep the rates unchanged.
Uttar Pradesh is the second largest contributor to small savings schemes after West Bengal.
During the West Bengal assembly elections earlier this year, the Center had decided to reduce the interest rate on these schemes. However, the very next day on April 1, the Finance Ministry canceled the interest rate cut of up to 1.1 per cent, citing a lapse.
Consequently, the first quarter rates were maintained at the level of the fourth quarter of the previous financial year. The cut was reported to be the fastest in several decades.
Interest rates for small savings schemes are notified on a quarterly basis.
The interest rate of 5.5 percent will continue to be available on the one year fixed deposit scheme, while the girl child savings scheme Sukanya Samriddhi There will be an earning of 7.6 percent in the plan account.
The interest rate on the five-year Senior Citizens Savings Scheme will remain unchanged at 7.4 per cent. Interest on the Senior Citizens Scheme is paid quarterly.
The interest rate on savings deposits will remain at 4 percent per annum.
The interest rate on fixed deposits of one to five years will be in the range of 5.5-6.7 per cent, which will be paid quarterly, while the interest rate on recurring deposits of five years will earn a higher interest rate of 5.8 per cent.
public provident Fund (PPF) and national savings certificate (NSC) will continue to have an annual interest rate of 7.1 per cent and 6.8 per cent respectively.
“The rates of interest on various small savings schemes for the third quarter of the financial year 2021-22 commencing from October 1, 2021 and ending on December 31, 2021, will remain unchanged from the current rates applicable for the second quarter (June). 2021 to September 30, 2021) for the financial year 2021-22,” the Finance Ministry said in a notification.
According to analysts, the upcoming Uttar Pradesh assembly elections could also be a factor behind the government’s decision to keep the rates unchanged.
Uttar Pradesh is the second largest contributor to small savings schemes after West Bengal.
During the West Bengal assembly elections earlier this year, the Center had decided to reduce the interest rate on these schemes. However, the very next day on April 1, the Finance Ministry canceled the interest rate cut of up to 1.1 per cent, citing a lapse.
Consequently, the first quarter rates were maintained at the level of the fourth quarter of the previous financial year. The cut was reported to be the fastest in several decades.
Interest rates for small savings schemes are notified on a quarterly basis.
The interest rate of 5.5 percent will continue to be available on the one year fixed deposit scheme, while the girl child savings scheme Sukanya Samriddhi There will be an earning of 7.6 percent in the plan account.
The interest rate on the five-year Senior Citizens Savings Scheme will remain unchanged at 7.4 per cent. Interest on the Senior Citizens Scheme is paid quarterly.
The interest rate on savings deposits will remain at 4 percent per annum.
The interest rate on fixed deposits of one to five years will be in the range of 5.5-6.7 per cent, which will be paid quarterly, while the interest rate on recurring deposits of five years will earn a higher interest rate of 5.8 per cent.
.