New Delhi: The government on Thursday saves interest rates for small savings schemes, including NSC and PPF, unchanged for the third quarter of 2021-22 amid the Covid-19 pandemic level and increased inflation rate.
Public Providential Funds (PPF) and National Savings Certificates (NSC) will continue to bring an annual interest rate of 7.1 percent and 6.8 percent.
“The interest in various small savings schemes for the third quarter of the financial year 2021-22 starting from October 1, 2021, and ending on December 31, 2021, will remain unchanged from current rates that apply to the second quarter (June 1, 2021 to 30 September 2021) for FY 2021-22, “said the Ministry of Finance in notification.
According to analysts, the election of the upcoming Uttar Pradesh Council has also become a factor behind the government’s decision to keep interest rates unchanged.
Uttar Pradesh is the second highest contributor to a small savings scheme after West Bengal.
During the election of the West Bengal Assembly earlier this year, the center decided to reduce the interest rate in this scheme.
However, the next day on April 1, the Ministry of Finance revoked the steep interest rate of up to 1.1 percent, quoted supervision.
As a result, the first quarter level was maintained at the fourth quarter level of the last financial year.
The pieces were mentioned as steepest in decades.
Interest rates for small savings schemes are notified every quarter.
The one-year deposit scheme will continue to produce a 5.5 percent interest rate, while the daughter’s savings scheme of Sukriddhi Yojana will get 7.6 percent.
Interest rates in a five-year senior saving scheme will be maintained at 7.4 percent.
Flowers in the scheme of senior citizens are paid for each quarter.
The deposit rate of savings will continue to 4 percent per year.
The term deposits of one to five years will take the interest rate in the range of 5.5-6.7 percent, to be paid every quarter, while interest rates on deposits have repeated five years will get a higher interest of 5.8 percent.