whtatsap

Friday, 2 October 2020

reduction in interest rate on PF, Kisan Vikas Patra

 Interest rate: No reduction in interest rate on PF, Kisan Vikas Patra, NSC and Sukanya schemes, current interest rate will remain the same till December

Interest rate: No reduction in interest rate on PF, Kisan Vikas Patra, NSC and Sukanya schemes, current interest rate will remain the same till December

  • If you invest Rs 1 lakh in SBI FD and Post Office Savings, you will get Rs 623 more interest per year in Post Office.
  • The government has not reduced the interest rates on these schemes as bank FD rates are already low

There is good news for small savings scheme investors. The government has decided to keep the current interest rate from October to December quarter. This way there will be no reduction in the interest rate you get. The government will review it next December. The effect will be that you will continue to earn more than 7% interest on schemes like PPF NSCS.

The government decided

The government has issued a circular in this regard. According to him, no change has been made in the interest rates of Sukanya Samrudhi Yojana, Post Office Savings Scheme etc. These schemes are reviewed every three months. It was previously reviewed in the April-June quarter.

Interest earned on schemes in the third quarter

These schemes are among the schemes on which you will get interest rate in the third quarter. Savings deposit will earn 4% interest per annum. Time deposit of one to three years will earn 5.5% interest. You will get 6.7% interest on 5 year time deposit and 5.8% interest on 5 year recurring deposit. The interest rate will be 7.4% on 5 year Senior Citizen Savings Scheme and 6.6% on 5 year Monthly Income Account Scheme.

6.8% interest rate on National Savings

Similarly, 6.8% interest will be paid on 5 year National Savings Certificate and 7.1% interest on Public Provident Fund Scheme. Kisan Vikas Patra will get 6.9% interest rate. The interest rate will be 7.1% on PPF scheme and 7.6% on Sukanya Samrudhi. All of these rates are for the July quarter, which will continue into the October quarter.
For those who invest in NSC, KVP, SCSS, time deposit, the interest rate remains the same from investing in the scheme till maturity period. As well, interest rates for PPF and Sukanya Samridhi change every quarter after review by the government.

Interest rates fell during April to June

During the first quarter of the current financial year, April-June, the government reduced the interest rate on post office deposit schemes from 0.7% to 1.4%. The government has not reduced the interest rates of these schemes as the bank FD rates are already below. For example, the interest rate on SBI's FD is currently 4.90%, while at the post office it is 5.5%. That means you are getting 60BPS more interest in it.
If you invest Rs 1 lakh, you will get Rs 623 more interest on post office investment annually.

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