Interest rates on small savings schemes unchanged for first quarter of FY23

The government on Thursday kept interest rates on small savings schemes, including NSC and PPF, unchanged for the first quarter of 2022-23 due to an elevated level of inflation. The interest rate has not been revised since the first quarter of 2020-21. 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, in the first quarter.

“The rate of interest on various small savings schemes for the first quarter of the financial year 2022-23, starting from April 1, 2022, and ending on June 30, 2022, shall remain unchanged from the current rates applicable for the fourth quarter (January 1, 2022, to March 31, 2022) for FY 2021-22,” the finance ministry said in a notification.

Interest rates for small savings schemes are notified on a quarterly basis. The one-year term deposit scheme will continue to earn an interest rate of 5.5 per cent in the first quarter of the next fiscal, while the girl child savings scheme Sukanya Samriddhi Yojana account will earn 7.6 per cent.

The interest rate on the five-year senior citizens’ savings scheme will be retained at 7.4 per cent. The interest on the senior citizens’ scheme is paid quarterly. The interest rate on savings deposits will continue to be 4 per cent per annum. Term deposits of one to five years will fetch an 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.

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