PPF, NSC, Kisan Vikas Patra, other small savings interest rates remain unchanged for Q2.
In a relief to savers, the government on Wednesday kept interest rates on small savings schemes, including NSC and PPF, unchanged for the second quarter of 2021-22 amid the COVID-19 pandemic.
The annual interest rate on Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue at 7.1 per cent and 6.8 per cent, respectively, in the second quarter as well.
“The rates of interest on various small savings schemes for the second quarter of the financial year 2021-22 commencing from July 1, 2021 and ending on September 30, 2021, will remain unchanged from the existing rates applicable for the first quarter (April). 2021 to June 30, 2021) for the financial year 2021-22,” the Finance Ministry said in a notification.
The government had swiftly scrapped small savings schemes on April 1, citing a steep interest rate cut of up to 1.1 per cent for the first quarter.
Consequently, the first quarter rates were maintained at the level of the fourth quarter of the previous financial year. The cut was seen as the sharpest cut in several decades.
Interest rates for small savings schemes are notified on a quarterly basis.
The one-year fixed deposit scheme will continue to earn an interest rate of 5.5 per cent during the second quarter of the current financial year, while the girl child savings scheme Sukanya Samriddhi Yojana account will earn 7.6 per cent.
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.
Fixed deposits of one to five years will fetch interest at the rate 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.
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