new Delhi: The high level of inflation has forced the central government to keep the interest rates of small savings unchanged.
The Center on Thursday decided to keep the interest rates on small savings schemes, including NSC and PPF, unchanged for the first quarter of FY 22-23, said a PTI report.
Since the first quarter of FY20-21, the interest rate has not been revised.
According to the report, the annual interest rate on Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to be 7.1 per cent and 6.8 per cent, respectively, in the first quarter.
In a notification on Thursday, the Finance Ministry said, “The rate of interest on various small savings schemes for the first quarter of the financial year 2022-23, commencing from April 1, 2022, and ending on June 30, 2022. 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, will yield 7.6 per cent in the account, while the one-year fixed deposit scheme will continue to earn an interest rate of 5.5 per cent in the first quarter of the next financial year.
The report mentions that the interest rate on the five-year senior citizens’ savings scheme will be retained at 7.4 per cent. Interest on the Senior Citizens Scheme is paid quarterly. The interest rate on savings deposits will remain at 4% 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.