Rates On All Small Savings Instruments Reduced

Rates On All Small Savings Instruments Reduced

02 April 2021 Current Affairs:The government has drastically reduced the interest rates on all small savings instruments in the first quarter of 2021-22.
Highlights:
♦ Rate of return on the Public Provident Fund: Reduced from 7.1% to 6.4%  
♦ Quarterly interest rate paid on one-year term deposits: Reduced from 5.5% to 4.4% 
♦ Rate of return on the Senior Citizen Savings’ Scheme: Reduced from 7.4% to 6.5%, 
♦ Sukanya Samriddhi Account Scheme’s return: Reduced from 7.6% to 6.9%.
♦ Interest rate paid on National Savings Certificate: from 6.8% to 5.9% 
♦ Kisan Vikas Patra: Reduced from 6.9% to 6.2%.
♦ Kisan Vikas Patra used to mature in 124 months and will now mature in 138 months.
♦ Savings deposits: Down from 4% to 3.5%. 
♦ The highest return at this time is the Sukanya Samriddhi Account Scheme, followed by the Seniors Savings Schemes and the Public Provident Fund.