Government slashes interest rates in PF, NSC and SSY schemes
The government has given a big blow to the common people by cutting interest rates on small savings schemes. Interest rates have been cut from savings accounts, PPF, FDs to savings schemes for the elderly. The new rates will come into effect from 1 April and will remain in effect till 30 June 2021.
The annual interest on deposits in Post Office savings accounts has been reduced from 4 per cent to 3.5 per cent. Public Provident Fund (PPF) used to get 7.1 per cent annual interest till now, which has been reduced to 6.4 per cent. The quarterly interest rate on deposits for one year has been reduced from 5.5 per cent to 4.4 per cent. The elderly will now get only 6.5 per cent quarterly interest on savings schemes instead of 7.4 per cent.
For one year, FD will attract 4.4 per cent interest instead of 5.5 per cent, for 2 years, deposit interest is now 5 per cent instead of 5.5 per cent, for 3 years the deposit interest is 5.5 per cent instead of 5.5 per cent, 5.8 percent interest will be received instead of 6.7 percent in FD’s for 5 year duration. At the same time, 5 years RD interest will be 5.3 percent instead of 5.8.
National Savings Certificate will be given only 5.9 per cent interest instead of 6.8 per cent. Interest rate on Kisan Vikas Patra will be 6.4 percent instead of 6.9 percent, while the time limit for maturity has been increased from 124 months to 138 months. Apart from this, the interest rate on Sukanya Samriddhi Yojana has also been reduced from 7.6 per cent to 6.9 per cent.
