New Delhi: The government on Thursday kept interest rates on small savings schemes, including NSC and PPF, unchanged for the second quarter of 2022-23 amid high inflation and rising interest rate. The interest rate on small savings schemes has not been revised since the first quarter of 2020-21.
Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to offer annual interest rates of 7.1 per cent and 6.8 per cent, respectively, in the second quarter of the current financial year. (Also Read: Competition Commission Of India Approves Google-Bharti Airtel Deal)
“The rates of interest on various small savings schemes for the second quarter of the financial year 2022-23, starting from July 1, 2022, and ending on September 30, 2022, shall remain unchanged from the rates notified for the first quarter (April 1). , 2022, to June 30, 2022) for the financial year 2022-23,” the finance ministry said in a notification. (Also Read: New Wage Code: Employees Will Get Salary, Full And Final Settlement In 2 Days After Resignation! View Details)
Interest rates for small savings schemes are notified on a quarterly basis.
The one-year fixed deposit scheme will continue to earn an interest rate of 5.5 per cent in the second quarter.
It is to be noted that the country’s largest lender State Bank of India (SBI) raised the interest rate on one-year fixed deposits to 5.10 per cent after increasing the benchmark rate by 90 basis points twice in a row to beat high inflation. .
The Reserve Bank of India (RBI) increased the repo rate by 40 basis points and 50 basis points respectively in May and June.
Retail inflation stood at 7.04 per cent in May, above the RBI’s tolerance level for the fifth consecutive month.
The interest rate on the five-year senior citizens’ savings scheme will remain unchanged at 7.4 per cent. Interest on the Senior Citizens Scheme is paid on quarterly basis.
The girl child savings scheme Sukanya Samriddhi Yojana will get 7.6 percent interest.
The interest rate on savings deposits will remain at 4 per cent per annum.
Fixed deposits of one to five years will fetch an interest rate of 5.5-6.7 per cent, which will be paid quarterly, while five-year recurring deposits will earn a higher interest rate of 5.8 per cent.