No change in interest rates on small savings schemes
Keeping in view the high levels of inflation and the increase in key rates, the government has taken this decision. There has been no change in the interest rates of small savings schemes from the first quarter of 2020-21.
The government has not made any change in the interest rates for the second quarter of the current financial year on small savings schemes including NSC and PPF and Sukanya Samriddhi. The government has taken this decision in view of the high levels of inflation and the increase in key rates by the Reserve Bank. There has been no change in the interest rates of small savings schemes from the first quarter of 2020-21. After the decision, interest of 7.6 percent will continue to be available in Sukanya Samriddhi Yojana. Which is small savings schemes (small savings scheme) has the highest. At the same time, interest on PPF will continue to be 7.1 percent and on National Savings Certificate at the rate of 6.8 percent annually.
what is the decision of the government
The Finance Ministry said in a notification today that the rate of interest on various small savings schemes will remain unchanged during the second quarter of the financial year 2022-23 (from July 2022 to September 2022). That is, during the second quarter, investors will get interest at the same rate they are getting in the first quarter. On the other hand, the old rates will be available on new investment also. Interest rates on small savings schemes are announced on a quarterly basis. The decision to keep rates stable has been taken after rising inflation and increase in key rates. The Reserve Bank has increased repo rates by 0.9 percent twice during May and June. After which many banks have increased their FD rates. At the same time, the inflation rate is above 7 percent, which is also beyond the limit set by the Reserve Bank.
how much interest will you get
According to the circular of the ministry, 7.10 percent interest will be available on PPF, 6.8 percent on NSC, 6.6 percent interest in Post Office Monthly Income Scheme account and 7.4 percent interest on Senior Citizen Saving Scheme. Interest will be available at the rate of 6.6 percent per annum on the monthly income scheme of 5 years. Interest rate on one-year deposit will be 5.5 percent while on 5-year deposit, the interest rate will be 6.7 percent. Senior citizens will get 7.4 percent interest in the 5-year savings scheme. Senior citizens get interest on quarterly basis. Along with this, interest rate of 7.6 percent will be available in Sukanya Samriddhi Yojana. At the same time, interest of 6.9 percent is being given on Kisan Vikas Patra. Interest of 4 percent will continue on the savings scheme. An interest of 5.5 to 6.7 percent is being given on term deposits for one to five years. Interest of 5.8 percent will be available on 5 years recurring deposit.
Better returns than FDs
The interest rate on small savings schemes is fixed on a quarterly basis. Small savings schemes are offering better returns than bank FDs even if there is no change in interest. SBI bank FD interest rates range from 2.9 percent to 5.5 percent. The bank is offering 3.4 to 6.3 percent interest on FDs to senior citizens. That is, even after keeping the rates stable, the returns on small savings schemes are better than bank FDs.