Turn: Ongoing voting forces the government to return interest for January-March

Turn: Ongoing voting forces the government to return interest for January-March

Turn: Ongoing voting forces the government to return interest for January-March

New Delhi :Less than 12 hours after raising interest rates, Union Finance Minister Nirmala Sitharaman on Thursday revoked the order, saying it was "oversight." ''

"Indian Government schemes will continue to be available for the last quarter of 2020-2021, that is, available from March 2021. Orders issued on oversight will be revoked," Sitharaman tweeted this morning. .

"The minimum interest rate will be maintained at the fourth quarter of the last financial year," he said.

The minister withdrew the order announced at 10pm on Wednesday due to the ongoing elections, sources said. This would be the second blow to a large portion of the population, especially the elderly and professionals, who claim to make the most use of interest from small savings or set a future in the provident fund. Interest rates on fixed bank deposits have already declined following the low interest rates on the corporate sector.

In the worst case scenario for those who invest in fixed income, the Government has reduced interest rates on programs such as these which include small postal savings schemes in three months and the Older Care Scheme to 6.5% from 7.4% per annum.

Turn: Ongoing voting forces the government to return interest for January-March

The interest rate on PPF has been reduced to 44 years by 6.4% from 7.1% per annum while the five-year Benefit Account Scheme will provide 5.7 percent instead of the 6.6 percent paid monthly.

Previous story: Interest rate on small savings schemes reduced

For a 1-year deposit period, the interest rate will be 4.4% and for a five-year deposit, the rate will remain at 5.8% per annum.

The biggest cuts in the 1 year deposit when the new rate dropped by 1.1%. The interest rate on a postal savings account has also been reduced from 4% to 3.5%. The five-year RD scheme will receive 5.3% and Sukanya Samriddhi Yojana will contribute 6.9% per annum. KVP income will now double to 138 months (6.2%) instead of living before 124 months (6.9%).

Depending on the government's yield, at the beginning of each quarter of the financial year, the government sets interest rates on postal plans over the next three months.

But there is no change until the maturity of investment in the NSC, KVP, Time Deposits, Senior Citizens Savings Scheme (SCSS).

There is a provision in PPF and Sukanya Samriddhi Yojana (SSY) for quarterly average reviews for any financial year.

Many postal schemes come with tax benefits under Section 80C of the IT Act and are all independently supported.