New Delhi: The Finance Ministry has decided not to revise the interest rates on small saving schemes for quarter three of the financial year 2021-2022. This means that interest rates on schemes such as Public Provident Funds (PPF), Senior Citizens Saving Schemes (SCSS), and National Saving Certificate (NSC), among others, remain unchanged for three months starting July 2021. For those uninitiated, small savings schemes are offered by the Government of India, banks or public financial institutions to encourage citizens to make small deposits for their future.
Interest rates on saving schemes
With no revision, an investor will get an interest rate of 7.1% per annum on PPF. Similarly, the interest rate on the NSC scheme has remained unchanged at 6.8% while Sukanya Samriddhi Yojana will fetch a 7.6% interest rate annually.
Finance Ministry reviews interest rates after every quarter
Finance Ministry usually reviews the interest rates on small saving schemes every quarter. However, the ministry has kept the interest rates for the five quarters, including the ongoing one.
In India, millions of investors put their money on small tax savings schemes which also help in saving tax under Section 80C of the Income Tax Act.
Most of the small saving schemes are backed by the state, which means that they are one of the safest investment opportunities in India. Also Read: China celebrates 100th founding anniversary of Communist Party at Tiananmen Square
Previously, on March 31, Finance Ministry had slashed the interest rates on small saving schemes by a tad bit. However, the decision was withdrawn by the ministry, saying that the decision was an ‘oversight’. Also Read: Big blow to common man! LPG cylinder prices increased by Rs 25.50, check rate in your city