The Reserve Bank of India (RBI) has been cutting the key policy rates to mitigate Covid-19 impact. Also, most of the banks and financial institutions have already been reducing the interest rates on their deposits schemes.
So, as widely anticipated, the central Govt had previously announced a steep cut in the interest rates on small savings schemes for the first quarter (April to June) of FY 2020-21. Interest rates on various small savings schemes have been cut anywhere between 70 basis points and 140 basis points (100 basis points = 1 per cent).
However, the interest rates on small savings schemes have been kept unchanged by the government for the Second, third and fourth quarters of FY 2020-21.
The Ministry of Finance on March 31 – 2021, announced a cut in interest rates for first quarter of FY 2021-22, in a host of schemes including small savings deposit rate, Senior Citizen Savings Scheme and Public Provident Fund Scheme. These Small Saving Schemes interest rate cuts are in-line with overall interest rate movement in financial system. When bank lending deposit rates fall sharply, small savings rates have to follow to align with the larger trend.
(Latest News) | Govt withdraws Small Savings Scheme (SSS) rate cut.
Govt withdraws Small Savings Scheme (SSS) rate cut. The cut in interest rates have been rolled back!
Interest rates of SSS shall continue to be at the rates which existed in the last Quarter of FY 2020-21 (rates that prevailed as of March 2021).
The National Savings Schemes (NSSs) are one of the very popular saving schemes in India. These are regulated by the Ministry of Finance. They offer complete security of investment combined with attractive returns.
These schemes also act as instruments of financial inclusion especially in the geographically inaccessible areas due to their implementation primarily through the Post Offices, which have reach far and wide.
Some of the very popular schemes which fall under NSS are as below;
- PPF (Public Provident Fund)
- Sukanya Samriddhi Scheme
- Monthly Income Scheme (Monthly Income Account)
- Senior Citizen Savings Scheme
- KVP (Kisan Vikas Patra)
- NSC (National Savings Certificate)
- Time Deposits &
- Recurring Deposits
Latest Post Office Small Saving Schemes Interest rates Apr – Jun 2021 | Q1 of FY 2021-22
The latest rates of interest applicable (if rate cut has been implemented) on various small savings schemes for the quarter from April to June 2021 effective from 1.04.2021 would have been as below;
As the rate cut Order has been withdrawn, the latest rates are as below;
|Saving Scheme||Rates of Interest from |
1st Jan 2021 to 31st Mar 2021
|New Rates of Interest from|
1st April 2021 to 30th June 2021
|Sukanya Samriddhi Account -Girl Child Scheme||7.6%||7.6%|
|5 Year Sr.CSS||7.4%||7.4%|
|1 Year Term Deposit||5.5%||5.5%|
|2 Year Term Deposit||5.5%||5.5%|
|3 Year Term Deposit||5.5%||5.5%|
|5 Year Term Deposit||6.7%||6.7%|
|5 Year Recurring Deposit||5.8%||5.8%|
|5 Year MIS||6.6%||6.6%|
|5 Year NSC||6.8%||6.8%|
|Kisan Vikas Patra (KVP)||6.9%||6.9%|
Latest Interest Rate on Sukanya Samriddhi Scheme, PPF, MIS, NSC | Quarter-1 of FY 2021-22
The revised interest rates applicable on various small savings schemes for the first quarter from April to June 2021 effective from 1-04-2021 would be as below;
- The latest interest rate on Sukanya Samriddhi Scheme (SSA ) is 7.6%.
- The new rate of Interest on PPF (Public Provident Fund) would be 7.1%.
- The interest rate on Senior Citizen Savings Scheme (SCSS) has been reduced to 7.4%.
- New interest rate on Kisan Vikas Patra (KVP) would be 6.9%.
- The rate of interest on 5 year National Savings Certificate (NSC) is 6.8%.
- New interest rate on post office MIS (Monthly Income Scheme) is 6.6%.
- The rate of interest on a 5 year Post Office RD (Recurring Deposit) would be 5.8%.
Kindly note that interest rates of Small Savings Schemes are now reviewed and reset (if any) on a quarterly basis.
The revised rates (if any) are applicable for all the new investments MADE during the respective period.
For the existing investments under all the schemes (EXCEPT PPF & SUKANYA SAMRIDDHI SCHEME), the contracted interest rate remains unchanged until maturity.
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(Post first published on : 31-March-2021)