To provide relief to common man from lower saving earnings amid the pandemic, the Central Government has kept small savings rate unchanged for the July-September quarter.
As the interest rates are falling all across financial instruments, the government has widely expected to cut rate on small savings too.
Previously, the Centre withdrew a decision to cut rates for previous April-June quarter too as they feared backlash from savers.
The decision on rate cut was withdrawn in the middle of voting for Assembly polls in West Bengal and Assam.
“The rate of interest on various small savings schemes for the second quarter of the financial year 2021-22 starting from July 1, 2021 and ending on September 30, 2021 shall remain unchanged from the current rates applicable for the first quarter (April 1 to June 30,2021) for FY 2021-22,” a finance ministry office memorandum issued late on Wednesday night said.
With the status quo, savers would continue to get 4 per cent interest on small savings during the July-September quarter as well. The 1-year time deposit rates will also remain at 5.5 per cent and so will the 5-year recurring deposit at 5.8 per cent.
Public Provident Fund (PPF) will also continue to get 7.1 per cent rate while Sukanya Samriddhi Yojana (SSY), National Savings Certificate will get interest rate of 7.6 and 6.8 per cent, respectively.
The interest rate on Kisan Vikas Patra was decreased to 6.9 per cent and the instrument will mature in 124 months.
