The Reserve Bank of India (RBI) has been cutting the key policy rates to mitigate Covid-19 impact. Also, most of the banks and financial institutions have already been reducing the interest rates on their deposits schemes.
So, as widely anticipated, the central Govt had previously announced a steep cut in the interest rates on small savings schemes for the first quarter (April to June) of FY 2020-21. Interest rates on various small savings schemes have been cut anywhere between 70 basis points and 140 basis points (100 basis points = 1 per cent).
However, the interest rates on small savings schemes have been kept unchanged by the government for the Second, third and fourth quarters of FY 2020-21, and also for the first quarter of FY 2021-22.
The government has kept the post office small savings schemes interest rates unchanged for the July-August-September 2021 quarter as well. In a falling interest rate scenario, no change in the post office small savings schemes’ interest rates is going to be good news for the fixed-income investors.
The National Savings Schemes (NSSs) are one of the very popular saving schemes in India. These are regulated by the Ministry of Finance. They offer complete security of investment combined with attractive returns.
These schemes also act as instruments of financial inclusion especially in the geographically inaccessible areas due to their implementation primarily through the Post Offices, which have reach far and wide.
Some of the very popular schemes which fall under NSS are as below;
- PPF (Public Provident Fund)
- Sukanya Samriddhi Scheme
- Monthly Income Scheme (Monthly Income Account)
- Senior Citizen Savings Scheme
- KVP (Kisan Vikas Patra)
- NSC (National Savings Certificate)
- Time Deposits &
- Recurring Deposits
Latest Post Office Small Saving Schemes Interest rates Jul – Sep 2021 | Q2 of FY 2021-22
The latest rates of interest applicable on various small savings schemes for the quarter from July to September 2021 effective from 1.07.2021 would be as below;
| Saving Scheme | Rates of Interest from 1st April 2021 to 30th June 2021 |
New Rates of Interest from 1st July 2021 to 30th September 2021 |
| Sukanya Samriddhi Account -Girl Child Scheme |
7.6% | 7.6% |
| 5 Year Sr.CSS | 7.4% | 7.4% |
| PPF | 7.1% | 7.1% |
| Savings Deposit | 4.0% | 4.0% |
| 1 Year Term Deposit | 5.5% | 5.5% |
| 2 Year Term Deposit | 5.5% | 5.5% |
| 3 Year Term Deposit | 5.5% | 5.5% |
| 5 Year Term Deposit | 6.7% | 6.7% |
| 5 Year Recurring Deposit | 5.8% | 5.8% |
| 5 Year MIS | 6.6% | 6.6% |
| 5 Year NSC | 6.8% | 6.8% |
| Kisan Vikas Patra (KVP) | 6.9% | 6.9% |
Latest Interest Rate on Sukanya Samriddhi Scheme, PPF, MIS, NSC | Quarter-2 of FY 2021-22
The revised interest rates applicable on various small savings schemes for the first quarter from July to September 2021 effective from 1-07-2021 would be as below;
- The latest interest rate on Sukanya Samriddhi Scheme (SSA ) is 7.6%.
- The new rate of Interest on PPF (Public Provident Fund) would be 7.1%.
- The interest rate on Senior Citizen Savings Scheme (SCSS) has been reduced to 7.4%.
- New interest rate on Kisan Vikas Patra (KVP) would be 6.9%.
- The rate of interest on 5 year National Savings Certificate (NSC) is 6.8%.
- New interest rate on post office MIS (Monthly Income Scheme) is 6.6%.
- The rate of interest on a 5 year Post Office RD (Recurring Deposit) would be 5.8%.
Kindly note that interest rates of Small Savings Schemes are now reviewed and reset (if any) on a quarterly basis.
The revised rates (if any) are applicable for all the new investments MADE during the respective period. For the existing investments under all the schemes (EXCEPT PPF & SUKANYA SAMRIDDHI SCHEME), the contracted interest rate remains unchanged until maturity.
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(Post first published on : 01-July-2021)
