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Home >News >India >PPF, NSC, other small savings schemes interest rate cut withdrawn

Finance Minister Nirmala Sitharaman on Thursday said the government has withdrawn Wednesday's order which announced steep interest rate cut on small saving schemes such as PPF and NSC - saying it was an oversight.

"Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn," read a tweet from Finance Minister Nirmala Sitharaman.

Once restored, PPF and NSC will carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively.

One-year term deposit scheme to earn a higher interest rate of 5.5 per cent during the first quarter of the current fiscal while the girl child savings scheme Sukanya Samriddhi Yojana account will earn 7.6 per cent as against reduced rate of 6.9 per cent.

Govt notifies interest rates for small savings schemes on a quarterly basis.

The rates of interest on various small savings schemes for the first quarter of the financial year 2021-22 starting from April 1 and ending on June 30, 2021, was revised on Wednesday.

While announcing the quarterly setting of interest rates in 2016, the finance ministry had said that rates of small savings schemes would be linked to government bond yields.

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