The highest interest rate in the country is available on PF of Employees’ Provident Fund Organization (EPFO), but the Central Board of Trustees of EPFO has proposed to reduce the interest on PF from 8.5 percent to 8.1 for the financial year 2021-22 to the Finance Ministry. Have given. After which the interest rate on PF of EPFO will be reduced by 0.4 percent. This is the lowest interest rate offered by EPFO on PF in 40 years. Talking about the recent times, there has been a huge cut in the interest rates of small savings schemes in the country. Let us know about the interest rates on these schemes.
Senior Citizen Savings Scheme: This savings scheme is for senior citizens from the central government. Under this scheme, any senior citizen above 60 years of age can take advantage of this scheme by visiting his nearest post office. An interest rate of 7.4 percent is being given in the Senior Citizens Savings Scheme. You can invest up to a maximum of 15 lakhs in this.
Public Provident Fund: Under this scheme, any citizen of the country can open his PPF account by visiting a bank or post office. The current interest rate on PPF is 7.1 percent. The maximum investment that can be made in this is Rs 1.5 lakh.
Kisan Vikas Patra: This scheme was launched by the Department of Posts in 1988. You can invest at least one thousand rupees in Kisan Vikas Patra, while there is no upper investment limit. In this scheme, you get income tax exemption under section 80C of Income Tax with an interest rate of 6.9 percent.
National Savings Certificate (NSC): NSC is also a popular scheme run by the Department of Posts. In this, an interest rate of 6.8 percent is being given at present. NSC has a lock-in period of 5 years. Under this scheme also, exemption of up to Rs 1.5 lakh is available under section 80C of income tax.
Fixed Deposit (FD): The interest rate on country FDs has come down drastically during the last ten years. In 2010-11, where interest was available from 9 to 10 percent, which has now come down to around 6 percent on average.