Today the June quarter is ending and the Finance Ministry can take a decision regarding the interest rate available on small savings schemes. In the last quarter, the government had reduced the interest rate but that decision was withdrawn the very next day.
Today big news can come about the interest rate.
Today is the last month of June and with this the quarter is also ending. The new quarter will start from tomorrow. The interest rates for small savings schemes including Public Provident Fund (PPF), Senior Citizen Saving Scheme (SCSS), National Saving Certificate (NSC), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana are revised every three months. The last time the government had announced a cut in the interest rate, it was withdrawn the very next day. In such a situation, big news can come about the interest rate today.
Whether the government will cut the interest rate for small savings schemes in the next quarter, experts say that it is less likely. He says that the inflation rate is running continuously. In such a situation, the government will not decide to cut the interest rate. In the same month, there was a meeting of the Reserve Bank Monetary Policy in which the RBI expressed concern over rising inflation. The Reserve Bank estimates that the average inflation rate in the current financial year can be close to 5 percent.
Interest rate on FD at all-time low
The interest rate on fixed deposits is currently at a historic low. There is a negative return on fixed deposits on net basis. This is the reason why experts expect that the government will not cut the interest rate for small savings schemes.
For savings and term deposits
On March 31, the government reduced the interest rate for savings deposits from 4 per cent to 3.5 per cent. Its compounding frequency is annually. The interest rate on 1-year term deposits was reduced from 5.5 per cent to 4.4 per cent. The interest rate on 2-year term deposits was reduced from 5.5 per cent to 5 per cent. The interest rate on 3-year term deposits was reduced from 5.5 per cent to 5.1 per cent and for 5-year term deposits from 6.7 per cent to 5.8 per cent. The interest rate on recurring deposits for 5 years was reduced from 5.8 per cent to 5.3 per cent.
Govt cuts interest rates on small savings wef from April 1
Savings deposit revised from 4% to 3.5%,annually.
PPF rate down from 7.1% to 6.4%,annually.
1 yr time deposit revised from 5.5% to 4.4%,quarterly.
Senior citizen savings schemes rate down from 7.4% to 6.5%,quarterly&paid pic.twitter.com/x05Hko3vho– ANI (@ANI) March 31, 2021
SCSS for Sukanya Samriddhi
Apart from this, the interest rate for Senior Citizen Savings Schemes (SCSS) was reduced from 7.4 per cent to 6.5 per cent. Interest rate reduced from 6.6 percent to 5.7 percent for Monthly Income Account, interest rate for National Savings Certificate reduced from 6.8 percent to 5.9 percent, interest rate for Public Provident Fund reduced from 7.1 percent to 6.4 percent, interest rate for Kisan Vikas Patra to 6.9 percent The interest rate was reduced from 7.6 percent to 6.9 percent for Sukanya Samriddhi Yojana and 6.2 percent from percent.
Also read: After Cairn Energy, Devas Multimedia increased the difficulties of the government and Air India, threatened to seize the property
Also read, This government power company is preparing to bring IPO, know what is the plan of the company
.