Government slashes interest rates on PPF, NSC, SCSS, other Post Office Schemes amid coronavirus COVID-19 outbreak

New Delhi: The Department of Economic Affairs, Ministry of Finance, on Tuesday (March 31) introduced an interest fee cuts on small financial savings schemes for the primary quarter (April to June) of Financial Year 2020-21. Interest rates have been decreased on numerous financial savings schemes between 70 foundation factors and 140 foundation factors because the RBI had just lately decreased the repo fee by 75 foundation factors, thereby, giving a transparent sign for rates to return down. 

According to the federal government notification, interest rates on Small Savings like Public Provident Fund (PPF), Kisan Vikas Patra, National Savings Certificate (NSC), Senior Citizens Scheme, Monthly Income Scheme have been decreased.

The Public Provident Fund (PPF) and Sukanya Samriddhi Yojana fee has been minimize by 0.Eight per cent or 80 bps every and it’ll now get an 7.1 per cent. 
Senior Citizens Scheme will get 7.four per cent (interest minimize by 1.2 per cent), 
Monthly Income Scheme will get 6.6 per cent (minimize by 1 per cent)
, whereas NSC will get an interest of 6.Eight per cent (minimize by 1.1 per cent) for the April-June quarter.

Accordingly, submit workplace time deposits of sure tenors have seen the sharpest minimize of 1.four per cent or 140 bps. Notably, interest rates on small financial savings schemes (apart from submit workplace financial savings account) have been final revised in July 2019. Since then, interest rates have been stored unchanged.

Interest rates have additionally been decreased on financial institution mounted deposits and saving schemes.

-Sukanya Samriddhi Yojana used to get 8.four per cent interest earlier, now it is going to get 7.6 per cent.
-Kisan Vikas Patra will get 6.9 per cent as an alternative of seven.6 per cent.
-1, 2, three year-old financial institution FD used to get 6.9 per cent interest earlier, now it is going to get 5.5 per cent.
-Interest on 5-year FD was 7.2 per cent, now it is going to get 5.Eight per cent.
-National Saving Certificate used to get 7.9 per cent interest, now it is going to get 6.Eight per cent.
-Earlier Interest on PPF was 7.9 per cent, now it is going to get 7.1 per cent.

Recently, the RBI had decreased the repo fee by 75 foundation factors. The SBI had subsequently introduced a revision within the SBI FD rates by reducing the interest fee throughout totally different FD scheme tenure. With the PO interest fee decrease than earlier than, the FD rates in banks are additionally anticipated to fall additional down.

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