The federal government on Thursday saved the rates of interest on small financial savings schemes, together with NSC and PPF, unchanged for the third quarter of 2021-22 amid the COVID-19 pandemic and elevated degree of inflation.
Public Provident Fund (PPF) and Nationwide Financial savings Certificates (NSC) will proceed to hold an annual rate of interest of seven.1 per cent and 6.8 per cent, respectively.
“The charges of curiosity on varied small financial savings schemes for the third quarter of the monetary 12 months 2021-22 ranging from October 1, 2021, and ending on December 31, 2021, shall stay unchanged from the present charges relevant for the second quarter (June 1, 2021 to September 30, 2021) for FY 2021-22,” the finance ministry stated in a notification.
In keeping with analysts, the upcoming Uttar Pradesh meeting elections may have been an element behind the federal government’s determination to maintain charges unchanged.
Uttar Pradesh is the second highest contributor to the small financial savings schemes after West Bengal.
Throughout the West Bengal meeting elections earlier this 12 months, the Centre determined to cut back the rate of interest on these schemes. Nonetheless, the very subsequent day on April 1, the finance ministry revoked the steep rate of interest reduce of as much as 1.1 per cent, citing an oversight.
In consequence, the primary quarter charges have been retained on the degree of the fourth quarter of the final monetary 12 months. The reduce was touted because the steepest in lots of a long time.
Rates of interest for small financial savings schemes are notified on a quarterly foundation.
One-year time period deposit scheme will proceed to earn an rate of interest of 5.5 per cent, whereas the lady little one financial savings scheme Sukanya Samriddhi Yojana account will earn 7.6 per cent.
The rate of interest on the five-year senior residents financial savings scheme could be retained at 7.4 per cent. The curiosity on the senior residents’ scheme is paid quarterly.
Rate of interest on financial savings deposits will proceed to be 4 per cent every year.
Time period deposits of 1 to 5 years will fetch rate of interest within the vary of 5.5-6.7 per cent, to be paid quarterly, whereas the rate of interest on five-year recurring deposits will earn a better curiosity of 5.8 per cent.
(Solely the headline and film of this report could have been reworked by the Enterprise Normal employees; the remainder of the content material is auto-generated from a syndicated feed.)