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Reduction in the interest rate for small savings withdrawn by the central government!
Posted on: 01/Apr/2021 11:32:50 AM
The Central government had announced on Wednesday (31st March) a reduction in the interest rate for the small savings! However, there were immediate and strong protests from all avenues! Subsequently, the Central Finance Minister Nirmala Seetharaman has announced that this proposal to reduce the interest rate for small savings IS BEING WITHDRAWN BY THE CENTRAL GOVERNMENT!
After the reduction in the interest rate announced for the Bank Fixed Deposits, the central ministry of Finance had announced yesterday (Wednesday, 31st March) a reduction in the interests for the small saving schemes as well. As per this, the interest rate for the PPF (Public Provident Fund) was reduced by o.7%to 6.4%, the interest rate on National Saving Certificate (NSC) Scheme was reduced by 0.9% to 5.9% and the interest rate on the Senior Citizens 5-years’ Saving Scheme was reduced by 0.9% to 6.5%.
The interest rate of 4% for the small saving scheme has been reduced for the first time by 0.5% from 4$ to 3.5%. The interest rate for the 1-year saving scheme has been reduced by 1.1%. As per this, the interest rate, which was 5.5%, has been down to 4.4%.
The interest rate for the 2-years saving scheme has been reduced by 0.5% from 5% to 4.5% and for the 3-years saving scheme, it is reduced by 0.4%. The interest rate for the 5-years saving scheme has been reduced by o,9%. The interest rate for the ‘Selvamagal Saving Scheme for the girl children has been reduced by 0.7% to 6.9%. It was announced that these reductions in the interest rates will be effective from today (Thursday, 1st April).
Following this, there was a strong and whole-hearted protest from all sectors for this interest rate reduction on small savings!
In this situation, the central government announced the withdrawal of the reduction of the interest rate for small savings from 4% to 3.5%.
The Central Finance Minister Nirmala Seetharaman has announced that the interest rate will continue to remain the same as the last quarter of the financial year 2020-21.
