In a major relief to the common man, the Narendra Modi government has withdrawn the rate cut order on the small saving schemes. In a brief message on Twitter, Union Finance Minister Nirmala Sitharaman said that interest rates for all saving schemes — which existed in the last quarter – will continue.
“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 Orders issued by oversight shall be withdrawn,” Sitharaman said in her tweet.
The government on Wednesday had announced the new interest rates on post office small savings schemes for the three months ending June 30, 2021. According to the circular issued by the Ministry of Finance, the interest rate on PPF had been revised from 7.1 per cent to 6.4 per cent per annum while for the Senior Citizen Savings Scheme, the interest rate had been fixed at 6.5 per cent instead of 7.4 per cent earlier.
Interest on the 5-year Monthly Income Account Scheme had been revised from 6.6 per cent to 5.7 per cent payable monthly. On the 1-year time deposit, the rate of interest had been fixed at 4.4 per cent while on the 5-year deposit, the rate was fixed at 5.8 per cent per annum.