Interest Rates On Small Savings Cut, PPF Down From 7.1% To 6.4%

Wednesday, March 31, 2021

/ by mansuralisaha


The News Cover: the government has cut interest rates. on small savings with effect from the 1st of April the savings deposit has been revised from 4 to 3.5 percent annually ppf public provident fund rates have gone down from 7.1 percent to point four percent annually a one-year deposit has been revised from five point five percent to four point four percent quarterly senior citizen saving schemes their rates are down,

from seven point four to six point five percent quarterly and paid senior citizens and those who have lost their income or jobs during the kovit 19 crisis will feel the pinch this he the percentage cut is quite staggering isn't it and this affects what senior citizens the most definitely Vishnu and this is of course

a root shock for senior citizens for millions of senior citizens and also those millions of workers who have lost their jobs i know many of my friends who have lost the jobs relatives also who were totally dependent on the income they were getting from their fixed income deposits but this huge cut, of course, 

is a great setback for all those millions of Indians who were completely dependent on the interest earnings from their fixed income sources what is important is that this is the second cut Vishnu in the last year if you remember on 31st march 2020 when there was a lockdown in the country the fixed income investors were in root shock when the small saving interest rates were cut by. 

the government at that time and this is the second cut within a year especially at a time when there is a financial crisis the incomes of people have fallen across the sectors millions of people have lost their jobs and senior citizens 

who are completely dependent on the fixed income schemes they are now of course their income will significantly decline what is also important is that while on the one side the government's contention is that these rate cuts have actually for this April june 2021 quarter have actually followed the fall in the 10-year government securities yield 

so the government's income is falling but the problem is for the common man for the middle-class people uh who for whom fixed income schemes are a great source of sustenance during this period of crisis of course their crisis 

will only increase I was just going through some of the figures if you just see the senior citizen saving scheme the interest rate has been cut from 7.4 percent to 6.5 this is almost 0.9 cut for the ppf 7.1 percent to 6.4 percent for national savings scheme six point eight percent to five point nine percent 

that's a huge cut and I was seeing that if you see across the board for different c schemes the cut is from zero point four percent to one point one percent and this comes at a time when the corona cases are rising and the possibility of those who have lost jobs to get a new job is again under scanning so I think it is mentioned people relying on fix on their savings and income from that they're going to suffer the most

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