: Interest rates on small savings unchanged #FinanceIndia #StockMarketNEWS #Business Press Trust of India New Delhi The government on Thursday kept interest rates on small savings schemes, including

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Interest rates on small savings unchanged #FinanceIndia #StockMarketNEWS #Business
Press Trust of India

New Delhi

The government on Thursday kept interest rates on small savings schemes, including National Savings Certificate (NSC) and Public Provident Fund (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. PPF and NSC will continue to carry an annual interest rate of 7.1% and 6.8%, 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,??? notification said.

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 interest rate on savings deposits will continue to be 4% per annum.

Term deposits of one to five years will fetch an interest rate in the range of 5.5%-6.7%, to be paid quarterly, while the interest rate on five-year recurring deposits will earn a higher interest of 5.8%.

Recently, the Provident Fund (PF) rate was reduced to a four-decade low of 8.1% for 2021-22 from 8.5%.

Defending the proposal to cut interest rate paid on employees’ provident fund deposits, Finance Minister Nirmala Sitharaman, earlier this month, said the rate is dictated by today’s realities where interest rate on other small saving instruments was even lower.

Sitharaman had also cited the comparative prevailing interest rates of other schemes saying Sukanya Samriddhi Yojana offers 7.6%, Senior Citizen saving scheme (7.4%) and PPF (7.1%) while States Bank of India’s 5-10 year fixed deposits gives 5.50%.