A shock to the commons at the start of the new financial year; Reduction in interest rates in almost all savings schemes
New Delhi: There is bad news for those who invest in small savings schemes at the beginning of the new financial year, starting tomorrow, 2021-22. It has announced to reduce interest rates on all such schemes. The new rates will be effective from tomorrow till June 30, 2021. Therefore, the beginning of the new financial year has come as a shock to the common man. Interest rates have been reduced in almost all savings schemes.
Interest rate cuts on PPF too
The most popular savings plan is the reduction in interest rates on PPF plans. The interest rate on the scheme has been slashed to 6.4 per cent from 7.1 per cent at present. At the same time, interest rates on senior citizen savings schemes for senior citizens have been slashed from 7.4 per cent to 6.5 per cent. The interest rate on Kisan Vikas Patra has also been reduced to 6.2 per cent.
Decrease in term deposits
Interest rates on term deposits have also been reduced. The new rates are fixed at 4.4 per cent on one-year term deposits, 5.0 per cent on two-year deposits, 5.1 per cent on three-year and 5.8 per cent on five-year terms.
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