The federal government on Wednesday lowered rates of interest on small financial savings together with PPF, one-year time deposit, senior citizen financial savings schemes. The adjustments will likely be efficient from April 1, 2021.
Lowered rates of interest on numerous financial savings scheme
- Financial savings deposit revised from four% to three.5%, yearly.
- PPF charge down from 7.1% to six.four%, yearly
- One yr time deposit revised from 5.5% to four.four%, quarterly.
- Senior citizen financial savings schemes charge down from 7.four% to six.5%, quarterly and paid.
The brand new rate of interest on PPF would be the lowest since 1974. In accordance with reviews, the PPF rate of interest was 7 per cent between August 1974 and March 1975. Previous to that, the speed was 5.eight per cent. Rates of interest for small financial savings schemes are notified on a quarterly foundation.
The charges of curiosity on numerous small financial savings schemes for the primary quarter of the monetary yr 2021-22 ranging from April 1 and ending on June 30, 2021, has been revised, the finance ministry mentioned in a notification.
The rate of interest for the five-year Senior Residents Financial savings Scheme has additionally been lowered steeply by zero.9 per cent to six.5 per cent. The curiosity on the senior residents’ scheme is paid quarterly.
For the primary time rate of interest on financial savings deposits has been lowered by zero.5 per cent to three.5 per cent from the present four per cent yearly.
The steepest fall of 1.1 per cent has been effected within the one-year time period deposit. The brand new charge will likely be four.four per cent as in comparison with 5.5 per cent in the intervening time.
Equally, two-year fastened deposit will earn zero.5 per cent much less at 5 per cent, three-year time period deposit charge will likely be down by zero.four per cent and five- yr time period deposit charge will likely be decrease by zero.9 per cent at 5.eight per cent.
The woman little one financial savings scheme Sukanya Samriddhi Yojana account will provide zero.7 per cent decrease charge at 6.9 per cent charge in the course of the first quarter of the subsequent fiscal.
The annual rate of interest on Kisan Vikas Patra (KVP) has been lowered by zero.7 per cent to six.2 per cent from 6.9 per cent.
Whereas saying the quarterly setting of rates of interest in 2016, the finance ministry had mentioned that charges of small financial savings schemes can be linked to authorities bond yields.
Final month, the Reserve Financial institution of India (RBI) saved rates of interest static for the fourth time in a row at four per cent on inflationary issues.
(With inputs from PTI)