Interest rate | A shock to the commons at the start of the new financial year; Reduction in interest rates in savings schemes
There is bad news for those who invest in small savings schemes at the beginning of the new financial year i.e. 2021-22 starting from tomorrow. 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.
The Ministry of Finance has listed the interest rates in the notification issued for the first quarter of the financial year 2021-22. As per the notification, interest rates on savings accounts have been reduced by 0.5%. It has been announced to increase from 4.0% to 3.5%. The interest rate available under Sukanya Samridhi Account Scheme has been increased from 7.6% to 6.9%. Similarly, the interest rate on National Savings Certificates has been reduced from 6.8 per cent to 5.9 per cent.
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.
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