SMALL SAVINGS INTEREST RATES

July 1, 2022

The Government of India has left the interest rates on small savings schemes such as the Public Provident Fund (PPF) and the National Savings Certificate (NSC) unchanged for the July-September quarter.

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A hike in small savings rate was expected in view of a surge in yields on government bonds, to which their returns are linked as per a formula, amid a surge in inflation and increases in key interest rates by the Reserve Bank.
This is the ninth quarter in a row that small savings rates have been held at the same level after rates were reduced in the range of 0.5% to 1.1% on different instruments for the April to June 2020 quarter.
For July to September, the Sukanya Samriddhi scheme will continue to earn 7.6%, the Senior Citizens Saving Scheme will earn 7.4%, PPF 7.1%, Kisan Vikas Patra 6.9%, and NSC 6.8%. Five-year term deposits will fetch 6.7% interest.

Source : The Hindu