PPF, different small financial savings scheme rates of interest stored regular for Q2. Details right here

In an enormous reduction to small buyers, the Centre has stored rates of interest on small financial savings schemes, together with NSC and PPF, unchanged for the second quarter of 2021-22 amid the continued coronavirus pandemic.

This is the fifth quarter (ending September 30, 2021) in a row that the finance ministry has retained the rate of interest on varied small financial savings schemes.

The finance ministry notification learn: “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.”

This means Public Provident Fund (PPF) and National Savings Certificate (NSC) will proceed to hold an annual rate of interest of seven.1% and 6.8%, respectively, within the second quarter as effectively.

The small financial savings schemes will proceed to fetch small buyers higher charges than different fastened earnings avenues comparable to financial institution fastened deposits (FDs).

For instance, the five-year fastened deposit underneath Post Office Savings Scheme provides a 6.7% rate of interest. Top banks in India typically supply 5.4-5.5% rates of interest on a set deposit of the identical interval.

Earlier on 1 April, the Centre had swiftly revoked a steep rate of interest minimize of as much as 1.1% for the primary quarter on small financial savings schemes, citing oversight.

As a end result, the primary quarter charges had been retained on the degree of the fourth quarter of the final fiscal 12 months. The minimize was touted because the steepest minimize in lots of many years.

Interest charges for small financial savings schemes are notified on a quarterly foundation.

One-year time period deposit scheme will proceed to earn an rate of interest of 5.5% in the course of the second quarter of the present monetary 12 months, whereas the woman baby financial savings scheme Sukanya Samriddhi Yojana account will earn 7.6%.

The rate of interest on the five-year senior residents’ financial savings scheme can be stored at 7.4%. The curiosity on the senior residents’ scheme is paid quarterly.

The rate of interest on financial savings deposits will proceed to be 4% each year.

Term deposits of 1 to 5 years will fetch an rate of interest within the vary of 5.5-6.7%, to be paid quarterly, whereas the rate of interest on five-year recurring deposits will earn the next curiosity of 5.8%.

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