Govt. Keeps Rates On Small Savings Schemes Unchanged For Q3FY22

The centre has kept the interest rate on small savings schemes, including PPF, NSC etc. unchanged for Q3FY22 amid uncertainty due to the pandemic as well as higher inflationary pressure. In the notification, the finance ministry said, "The rates of interest on various small savings schemes for the third quarter of the financial year 2021-22 starting from October 1, 2021, and ending on December 31, 2021, shall remain unchanged from the current rates applicable for the second quarter (June 1, 2021 to September 30, 2021) for FY 2021-22".

Govt. Keeps Rates On Small Savings Schemes Unchanged For Q3FY22

With it, the rates on the various small savings scheme continue to be steady for quite a while now. The rate on small savings schemes are pegged to the yield on 10-year benchmark bonds

As per analysts, the upcoming assembly elections in UP may also have nudged the government to keep rates on these schemes steady. Among states UP ranks second next only to West Bengal and makes the second highest contribution to small savings schemes. Earlier this year during the WB elections, the government announced the steep rate cut on these scheme for April- June quarter but revoked the same the very next day citing an oversight.

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.

One-year term deposit scheme will offer an interest rate of 5.5 per cent, while the girl child savings scheme Sukanya Samriddhi Yojana account will continue to earn 7.6 per cent.

The interest rate on the five-year senior citizens savings scheme would be retained at 7.4 per cent. The interest on the senior citizens' scheme is paid quarterly.

Interest rate on savings deposits will continue to be 4 per cent per annum.

Term deposits of one to five years will fetch 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.

With PTI Inputs