PPF, Other Small Savings Scheme Interest Rates Unchanged For Sept Quarter; Know What You Get
The rates during the first quarter rates remained at the level of the fourth quarter of the last financial year.
New Delhi: In a respite to the fixed income investors, the government on Wednesday left interest rates unchanged on small savings schemes, including National Savings Certificate (NSC) and Public Provident Fund (PPF).
The rates of Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively, in the second quarter as well.
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"The rates of interest on various small savings schemes for the second quarter of the financial year 2021-22 starting from July 1, 2021, and ending on September 30, 2021, shall remain unchanged from the current rates applicable for the first quarter (April 1, 2021 to June 30, 2021) for FY 2021-22," the finance ministry said in a notification.
As per the circular, PPF will continue to earn 7.10 per cent, the NSC will fetch 6.8 per cent, and Post Office Monthly Income Scheme Account will earn 6.6per cent.
On April 1, the government had to withdraw the steep interest rate cut of up to 1.1 per cent for the first quarter on small savings schemes, citing oversight. The proposed cut was seen as the steepest cut in many decades.
The rates during the first quarter rates remained at the level of the fourth quarter of the last financial year. Interest rates for small savings schemes are typically notified on a quarterly basis.
What depositors continue to get?
Those who have invested in the deposit scheme will earn an interest rate of 5.5 per cent for one-year term during the second quarter of the current fiscal. For deposits in the girl child savings scheme Sukanya Samriddhi Yojana, you will continue to earn 7.6 per cent.
While the five-year senior citizens savings scheme is retained at 7.4 per cent, and the interest on the senior citizens'' scheme is paid quarterly.
Customers will continue to get 4 per cent per annum on interest rate on savings deposits. Term deposits of one to five years will fetch an interest rate in the range of 5.5-6.7 per cent, to be paid quarterly, while the interest rate on five-year recurring deposits will earn a higher interest of 5.8 per cent.
(With inputs from Prashant)
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