Updated Sep 30, 2021 | 21:54 IST
This means that for the October-December quarter of the current fiscal year, investors will continue to get the same interest rates they got for the July-September quarter.
New Delhi: The government on Thursday kept interest rates on the popular Public Provident Fund (PPF) and other small savings programs such as the one-year term deposit, the 5-year recurring deposit, the savings plan for the elderly, Sukanya Samriddhi Yojana and Kisan Vikas Patra unchanged for the sixth consecutive quarter so as not to face the wrath of small savers. This means that for the October-December quarter of the current fiscal year, investors will continue to get the same interest rates they got for the July-September quarter.
According to a circular issued by the Ministry of Finance on September 30, 2021, the PPF will continue to earn 7.10% while the NSC will earn 6.8%, and the post office monthly income scheme account will earn 6.6 % interest for the October-December quarter.
The status quo on small savings plan rates is a big relief for savers amid the low interest rates provided by banks on term deposits. The rates provided by the government on these schemes are between 100 and 250 basis points higher than the rates provided by the banks on similar deposits.
Small savings interest rate for the October-December quarter of FY22
|Instruments||Interest rate||Compound frequency|
|One year term deposit||5.5%||Quarterly|
|2 year term deposit||5.5%||Quarterly|
|3 year term deposit||5.5%||Quarterly|
|5-year term deposit||6.7%||Quarterly|
|5-year recurring deposit||5.8%||Quarterly|
|Seniors Savings Plan over 5 years||7.4%||Quarterly & paid|
|5-year monthly income account||6.6%||Monthly and paid|
|5-year national cash voucher||6.8%||Annually|
|Public provident fund||7.1%||Annually|
|Kisan Vikas Patra||6.9%||Annually|
|Sukanya Samriddhi Yojana||7.6%||Annually|
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