Interest Rates On Small Savings Schemes For FY 2022-23 To Remain Unchanged, Finance Ministry Issues Notification
This is the eighth consecutive quarter for which the government has not made any changes to the interest rates on small savings instruments.
New Delhi: The Union Government on Thursday said interest rates of various Small Savings Schemes, including popular schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Scheme, will remain unchanged for the June quarter. “Rate of interest on various Small Savings Schemes for Q1 of FY 2022-23 starting from April 1, 2022, and ending on June 30, 2022, shall remain unchanged from the current rates applicable for Q4 (January 1, 2022, to March 31, 2022) of FY 2021-22,” said the Department of Economic Affairs, Ministry of Finance.
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What Are The Current Interest Rates of Various Saving Small Savings Schemes?
|SMALL SAVINGS SCHEMES||INTEREST RATE FOR APR-JUN 2022|
|One-year time deposit||5.5%|
|Two-year time deposit||5.5%|
|Three-year time deposit||5.5%|
|Five-year time deposit||6.7%|
|Five-year recurring deposit||5.8%|
|Senior Citizen Savings Scheme||7.4%|
|Monthly Income Account||6.6%|
|National Savings Certificate||6.8%|
|Public Provident Fund Scheme||7.1%|
|Kisan Vikas Patra||6.9%|
|Sukanya Samriddhi Account Scheme||7.6%|
This is the eighth consecutive quarter for which the government has not made any changes to the interest rates on small savings instruments, despite changes in the government bond yields these interest rates are linked with.
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Moreover, the Central government has recently reduced the rate of the Employees’ Provident Fund Organisation (EPFO) deposits to a four-decade low of 8.1% for 2021-22. The EPFO deposit rate for 2020-21 was 8.5%.
Further, from April 1, 2022, the interest on Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit will only be credited only in the account holder’s post office savings account or bank account, and not be paid in cash.
The government’s decision came after the Reserve Bank of India (RBI) in its ‘State of the Economy’ article, noted that interest rates on small savings instruments had to be cut by 9-118 basis points for April-June 2022 to bring them in line with the formula-dictated rates.
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