Ministry of Finance, Government of India(GoI) had retained the Interest Rate of Small Savings Scheme for the 1st quarter(Q1) for the Financial Year 2021-22 (FY22) same as 4th quarter (Q4) for the Financial Year 2020-21 (FY 21).
- This is the 4th consecutive quarter, that GoI had retained the Interest Rates of the small saving schemes.
Interest Rates of the Small Savings Schemes are:
|Schemes||Rates of Interest from 1st April, 2021 to 30th June, 2021||Compounding Frequency|
|Post Office Savings Account (SB)||4.0%||Annually|
|5 Years National Savings Recurring Deposit Account (RD)||5.8%||Quarterly|
|1 Year Time Deposit||5.5%||Quarterly|
|2 Year Time Deposit||5.5%||Quarterly|
|3 Year Time Deposit||5.5%||Quarterly|
|5 Year Time Deposit||6.7%||Quarterly|
|National Savings Monthly Income Account (MIS)||6.6%||Monthly and Paid|
|Senior Citizens Savings Scheme Account (SCSS)||7.4%||Quarterly and Paid|
|Public Provident Fund Account (PPF )||7.1%||Annually|
|Sukanya Samriddhi Account (SSA)||7.6%||Annually|
|National Savings Certificates (NSC)||6.8%||Annually|
|Kisan Vikas Patra (KVP )||6.9%(will mature in 124 months)||Annually|
Note – On April 1, 2021, Minister of Finance, Nirmala Sitharaman announced that, GoI will retain (maintain) the Interest Rates of Small Savings Scheme as of the 4th Quarter of FY 21(i.e. January 1, 2021 – March 31, 2021).
Earlier on March 31, 2021, Ministry of Finance had released the Interest Rates of Small Savings Scheme, In that Release they had cut down (Reduced) the Rates of Interest of all the Schemes for 1st Quarter of FY22(i.e. April 1, 2021- June 30, 2021). Click here to know about that Rates.(Rates released on March 31, 2021).
This is for the first time that the Centre has withdrawn the notified interest rates on small savings schemes after switching to a quarterly interest rate in April 2016.
Who can Revise the Interest Rates?
Ministry of Finance can revise the Interest Rates of Small Savings Scheme, in excise of the power conferred by Rule 9(1) of the Government Savings Promotion General Rules, 2018.
How often the Rate of Interest will be Revised?
The Rate of Interest was revised by Ministry of Finance once in 3 Months [i.e. (Apr-Jun), (July – Sep), (Oct – Dec),(Jan-Mar)].
Minimum Amount for Opening the Account:
Post Office Savings Account(SB) – Minimum of Rs.500 is required for opening the account.
5 Years National Savings Recurring Deposit Account (RD)- Minimum INR 100/- per month or any amount in multiples of INR 10/-. No maximum limit.
National Savings Time Deposit Account(TD) (1 Year, 2 Year, 3 Year & 5 Year)- Minimum INR 1000/- and in multiple of 100. No maximum limit.
Monthly Income Scheme Account (MIS) – In multiples of INR 1000/- Maximum investment limit is INR 4.5 lakh in single account and INR 9 lakh in joint account.
Senior Citizens Savings Scheme Account(SCSS) – There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh.
Public Provident Fund Account(PPF ) – Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year. Deposits can be made in lump-sum or in instalments.
Sukanya Samriddhi Account(SSA) – Minimum INR. 250/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 50/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year.
National Savings Certificates (NSC) – Minimum of Rs. 1000/- and in multiples of Rs. 100/- No Maximum Limit.
Kisan Vikas Patra(KVP) – Minimum of Rs. 1000/- and in multiples of Rs. 100/- No Maximum Limit.
About Ministry of Finance:
Union Minister – Nirmala Sitharaman (Constituency – Karnataka).
Minister of State – Shri Anurag Singh Thakur (Constituency – Hamirpur, Himachal Pradesh).