Economy

No change in interest rate on small savings schemes

Our Bureau New Delhi | Updated on July 01, 2021

Interest rate on 12 small savings schemes, including NSC and PPF, to be maintained at current level for July-Sept quarter

The Finance Ministry on Wednesday announced that the interest rates on small saving schemes for the three-month period starting July 1 will remain unchanged. This means interest rates on various small saving schemes such as National Saving Certificates (NSC) and Public Provident Fund (PPF) will continue for at least three more months starting Friday.

The small savings schemes basket comprises 12 instruments including the National Saving Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP) and Sukanya Samriddhi Scheme. The government resets the interest rate at the beginning of every quarter.

Theoretically, since 2016, interest rate resetting has been done based on yields of government securities of the corresponding maturity, with some spread on the scheme for senior citizens, as advised by the Shyamala Gopinath Committee. However, in practice, the interest rate changes are made considering several other factors, including political ones.

Table

Small Saving Schemes

Saving Deposits

4

4

1 Yr Time Deposit

5.5

5.5

2 Yrs Time Deposit

5.5

5.5

3 Yrs Time Deposit

5.5

5.5

5 Yrs Time Deposit

6.7

6.7

5 Yrs Recurring Deposit

5.8

5.8

Sr Citizen Saving Scheme

7.4

7.4

Monthly Income A/C

6.6

6.6

NSC

6.8

6.8

PPF

7.1

7.1

Kisan Vikas Patra

6.9 (Maturity in 124 mths)

6.9 (Maturity in 124 mths)

Sukanya Samridhi

7.6

7.6

Published on June 30, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like