new Delhi. Due to Corona epidemic, the economic conditions of the common people are already bad and now the central government has given another big blow. In fact, the Finance Ministry has announced a cut in interest rates on PPF and other Small Saving Schemes. These rules will come into effect from 1 April 2021. According to the new order, the savings account will now get an interest rate of 3.5 percent instead of 4 percent every year.
At the same time, the interest rate on PPF for March to June 2021 quarter has been reduced from 7.1 per cent to 6.4 per cent. While the interest rate on Senior Citizen Savings Scheme (SCSS) has been reduced from 7.4 per cent to 6.5 per cent. In addition, the rate of interest on National Savings Certificates (NSC) has been reduced from 6.8 per cent to 5.9 per cent.
The government has also cut the interest rates of Sukanya Samriddhi Yojana (SSY) and increased the period of Kisan Vikas Patra. The interest rate of SSY has been reduced from 7.6 per cent to 6.9 per cent. Whereas the Kisan Vikas Patra (KVP) has been increased from more than 124 months to 138 months. That is, now KVP will be maturing in 138 months. The interest rate on this has been reduced from 6.9 per cent to 6.2 per cent.
Reduction in interest rates on post office scheme as well
Let us tell you that the Finance Ministry has also cut the interest rates on the post office scheme i.e. small savings products. These include Post Office Term Deposit, Post Office Savings Account and Post Office Monthly Income Scheme (POMIS).
According to the new order, the interest rate on the post office savings account has also been reduced from 4 per cent to 3.5 per cent. Apart from this, the post office term deposits of one to five years duration will now get 4.4–5.8 percent interest, whereas earlier it used to get 5.5–6.7 percent interest in the same period.