Interest rate cut on small savings schemes reversed

• Follow

The government on Thursday reversed the interest rate cut on small savings scheme which was announced on 31 March, citing oversight as a reason. Interest rates for small savings schemes are notified on a quarterly basis.

“Interest rates of small savings schemes of the government shall continue to be at the rates which existed in the last quarter of 2020-2021, i.e., rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn,” Finance Minister Nirmala Sitharaman tweeted.

Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn. @FinMinIndia @PIB_India

— Nirmala Sitharaman (@nsitharaman) April 1, 2021

The government on Wednesday had announced a cut in interest rates of small savings schemes, including NSC and PPF, by up to 1.1% for the first quarter of 2021-22 in line with falling fixed deposit rates of banks.

In the first quarter of 2021-22, PPF will continue to fetch 7.1% interest, while National Savings Certificate will continue to earn 6.8%. The interest rate for the five-year Senior Citizens Savings Scheme now stands at 7.45%. The girl child savings scheme Sukanya Samriddhi Yojana will continue to earn 7.6% interest. The annual interest rate on Kisan Vikas Patra continues to be 6.9%.