Govt Keeps Interest Rates On Small Savings Schemes Unchanged For Q1 Of FY23

Public Provident Fund and National Savings Certificate will continue to carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively, in the first quarter

New Delhi: Higher level of inflation has made the central government to keep interest rates of small savings unchanged.

The Centre on Thursday decided to keep interest rates on small savings schemes, including NSC and PPF, unchanged for the first quarter of FY22-23, a report by the PTI said.

Since the first quarter of FY20-21, the interest rate has not been revised.

According to the report, Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively, in the first quarter.

The ministry of finance on Thursday in a notification said, “The rate of interest on various small savings schemes for the first quarter of the financial year 2022-23, starting from April 1, 2022, and ending on June 30, 2022, shall remain unchanged from the current rates applicable for the fourth quarter (January 1, 2022, to March 31, 2022) for FY21-22.”

Interest rates for small savings schemes are notified on a quarterly basis.

The girl child savings scheme, Sukanya Samriddhi Yojana, account will earn 7.6 per cent, while the one-year term deposit scheme will continue to earn an interest rate of 5.5 per cent in the first quarter of the next fiscal year.

The report mentioned that the interest rate on the five-year senior citizens’ savings scheme will be retained at 7.4 per cent. The interest on the senior citizens’ scheme is paid quarterly. The interest rate on savings deposits will continue to be 4 per cent per annum.

Term deposits of one to five years will fetch an interest rate in the range of 5.5-6.7 per cent, to be paid quarterly, while the interest rate on five-year recurring deposits will earn a higher interest of 5.8 per cent.