Updated Feb 03, 2021 | 07:12 IST
The government s increasing dependence on small savings schemes such as PPF and NSC to fund its annual fiscal deficit is likely to ensure that interest rates are kept intact so as not to hurt inflows Interest rates on PPF, other small savings scheme unlikely to be slashed this fiscal | Photo Credit: Thinkstock
Union Finance Minister Nirmala Sitharaman may have dashed the hopes of small investors by not increasing the annual Public Provident Fund (PPF) contribution limit but economists anticipate that interest rates paid to investors on small savings schemes won’t be reduced this year.
Over the past few years, the government has become increasingly dependent on small savings schemes such as PPF, NSC, and post office deposits etc to fund its annual fiscal deficit.
Budget 2021 Highlights: Chidambaram lashes out at govt; says migrants, farmers deceived
Union Budget 2021 Highlights: Congress leader P. Chidambaram said that the government had only marginally raised health funding, which when adjusted to inflation becomes nil
BusinessToday.In | February 1, 2021 | Updated 19:56 IST
Union Budget 2021: Although the government has claimed a massive increase of 137 per cent in health allocation in Budget 2021, Congress leader P. Chidambaram lashed out at the Centre saying the figure was just a conjurer s trick
Union Budget 2021
: Although the government has claimed a massive increase of 137 per cent in health allocation in Budget 2021, Congress leader P. Chidambaram lashed out at the Centre saying the figure was just a conjurer s trick. Chidambaram further said that the government had only marginally raised health funding, which when adjusted to inflation becomes nil.
Budget 2021 Highlights: Chidambaram lashes out at govt; says migrants, farmers deceived
Union Budget 2021 Highlights: Congress leader P. Chidambaram said that the government had only marginally raised health funding, which when adjusted to inflation becomes nil
BusinessToday.In | February 1, 2021 | Updated 19:56 IST
Union Budget 2021: Although the government has claimed a massive increase of 137 per cent in health allocation in Budget 2021, Congress leader P. Chidambaram lashed out at the Centre saying the figure was just a conjurer s trick
Union Budget 2021
: Although the government has claimed a massive increase of 137 per cent in health allocation in Budget 2021, Congress leader P. Chidambaram lashed out at the Centre saying the figure was just a conjurer s trick. Chidambaram further said that the government had only marginally raised health funding, which when adjusted to inflation becomes nil.
BT Insight: Simplicity, liquidity key features of IRDA s Saral Pension Yojana
The Saral Pension policy can be surrendered any time after six months from the date of commencement, if the annuitant or the spouse or any of the children of the annuitant is diagnosed as suffering from any of the critical illnesses specified in the policy document
KEY HIGHLIGHTS
The scheme comes with one-time lump sum purchase and return of purchase price
Only two annuity options - single life annuity, joint life annuity
One may take loan against the policy after six-month of the purchase
Surrender option is available in case of a critical illness of a family member
Synopsis
This was announced by the finance ministry via a circular dated Dec 30, 2020. As per the circular, PPF will continue to earn 7.10%, the NSC will fetch 6.8%. Here is a look at the interest rates on various small savings schemes for the final quarter of FY 2020-21.
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There is good news for fixed income investors as the government has decided to keep the interest rates on small savings schemes or post office schemes, unchanged for the quarter ending March 31, 2021. This is the third quarter in a row that the government has kept interest rates on various small savings schemes such as Public Provident Fund (PPF), National Savings Certificates (NSC), Sukanya Samriddhi Yojana (SSY) and others unchanged. This means that investors in PPF and SSY will continue to earn the same interest rate as they were earning in the previous quarter, i.e., between October and December 2020. Also, in new investments in the quarter ending March 31, 2021 will get the same interest rates a