Small Saving Schemes: Interest rates on small savings schemes can be reduced from the month of July. In such a situation, the people already facing inflation may get another blow. On the other hand, the government is also under pressure to restore the economy.
Those who save money in small savings schemes may get a shock very soon. In media reports, it is being claimed that from July, the interest rates of many other small savings schemes, including the post office, can be cut. It has been said in these reports that the government is considering reducing the interest rate of these schemes. If such a decision is taken by the government, the interest rates of Public Provident Fund (PPF), Sukanya Samriddhi Yojana, Senior Citizens Scheme, Kisan Vikas Patra, Post Office Time Deposit and National Savings Certificate (NSC) will be reduced.
In fact, amidst the second wave of corona virus epidemic, the government is under pressure to take different measures for recovery in the economy. Meanwhile, it is also difficult for the government to reduce the bond yield. At the same time, the government needs large loans to meet its cash requirement. Large scale borrowing by the government means that bond yields can increase further.
Inflation has already hit ordinary people
In such a situation, the government has the option to reduce the interest rates in small savings accounts. However, the government will also have to see that such a move in the current circumstances does not increase the displeasure of the common people. From petrol and diesel, prices of many other everyday commodities have reached record levels. Rising inflation has already increased the problems of common people. In such a situation, the government will have to keep these things in mind as well.
Decision to cut for April-June quarter was reversed
Significantly, the Ministry of Finance had announced a cut in the interest rate for small savings schemes for the April-June quarter. However, within 24 hours of this announcement, Finance Minister Nirmala Sitharaman announced the interest rates to remain at the old rate. Thus, those saving in these schemes got relief.
Currently, how much interest is being received on these schemes?
Currently, the highest interest among these schemes is getting the maximum interest on Sukanya Samriddhi Yojana. Those investing in these small savings schemes also get the benefit of tax exemption.
| Small Savings Scheme | Rate of interest |
| Savings deposit | 3.50% |
| Time deposit for 1 year | 4.40% |
| Time deposit for 2 years | 5.00% |
| Time deposit for 3 years | 5.10% |
| Time deposit for 5 years | 5.80% |
| Recurring deposit for 5 years | 5.30% |
| Senior Citizens Savings Scheme | 6.50% |
| Monthly income account | 5.70% |
| National Savings Certificate | 5.90% |
| Public provident fund | 6.40% |
| Kisan Vikas Patra | 6.20% |
| Sukanya Samriddhi Yojana |
More than half of EPFO subscribers withdraw money during the Corona period
People facing the Corona crisis are also facing challenges at the financial level. This is the reason that between April 1, 2020 to May 12, 2021, about 3.5 crore employees have withdrawn 1.25 lakh crore rupees from their provident fund account. In this way, more than 50 percent of the 6 crore subscribers of Employees Provident Fund Organization have withdrawn money during the Koreana period.
