Finance ministry has kept the interest rates on small saving schemes (SSS) such as Public Provident Funds (PPF), Senior Citizens Saving Schemes (SCSS), National Saving Certificate (NSC), Kisan Vikas Patra (KVP) unchanged for the July-September quarter. Interest rates on small savings schemes are reviewed every quarter. This is the fifth quarter in a row where the government decided to keep the interest rates on various fixed income schemes unchanged.
Earlier on March 31, the central government had reduced the interest rates on small savings scheme and later withdrew the notification, calling it an ‘oversight’.
Several investors rely on small savings schemes for a fixed and guaranteed return. Some of them also offer income tax benefits under Section 80C. These are sovereign backed investment options where the principal invested and the interest earned are guaranteed by the government. Take a look at the interest rates on various small savings schemes for the second quarter of FY 2021-22.
From July-September, PPF will fetch an interest of 7.1 per cent per annum. The interest rate of National Savings Certificate (NSC) remained unchanged at 6.8 per cent. Among the other small savings schemes, the Sukanya Samriddhi Yojana will now attract an interest of 7.6 per cent per annum.
Investors will get a 4 per cent interest rate on post office savings account. For deposits with one year tenure, the interest rate has been fixed at 5.5 per cent. The interest rates will remain unchanged at 5.5 per cent with two to three year deposits. For deposits accounts with five years tenure, individuals can get up to 6.7 per cent interest rates during the September quarter.
The interest rate for five year recurring deposits will be 5.8 per cent in July-September quarter. Kisan Vikas Patra, a certificate scheme, will fetch an interest of 6.9 per cent.
Experts are of the view that central government refrained from tinkering with interest rates on small savings schemes amid rising inflation in the country. The Reserve Bank of India (RBI) in its latest monetary policy statement said it was likely to remain around 5% for the rest of the financial year 2021.
Now, the individuals have time till September 30 to link their Permanent Account Number (PAN) and Aadhaar Card. The earlier deadline was June 30. “Last date of linkage of Aadhaar with PAN under section 139AA of the Act, which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021," the Central Board of Direct Taxes (CBDT). The Union government had last week announced several extensions related to income tax.