** Govt cuts INTEREST RATES of Small Savings Schemes ** With effect from April 1, 2021, post oice saving schemes will fetch interest rates as follows: Public Provident Fund (PPF) - 6.4 per cent down from 7.1 per cent earlier, National Savings Certificate (NSC) - 5.9 per cent, down from 6.8 per cent earlier, Sukanya Samriddhi Yojana (SSY) - 6.9 per cent, down from 7.6 per cent earlier. Post office time deposit rates across tenures have been reduced by 0.40- 1.1% and will earn in the range of 4.4- 5.3%.
This is the second time the government has cut interest rates on small savings schemes in the past one year. In the April-June quarter of 2020-21, the government had slashed rates of small savings schemes by 70-140 bps. (100 bps= 1 per cent).
With the latest cut, interest rates on small savings schemes have been reduced by a total of 110-250 bps during the current financial year.
Here is a look at the interest rates on various small savings schemes for the fourth quarter of FY 2020-21.
