The finance ministry on Thursday kept interest rates on small savings plans including the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY), other post regimes unchanged for the sixth consecutive quarter for the quarter October-December.
This means that the interest rates earned in the July through September quarter of fiscal 22 will be the same for the following quarter. In addition, new investments made during the October-December 2021 quarter will also benefit from the same interest rates as in the previous quarter.
According to the ministry circular, the PPF will continue to earn 7.10%, the NSC will earn 6.8%, and the post office monthly income plan account will earn 6.6%, as well as the savings plan. for the elderly, the interest rate is 7.4%.
The 5-year monthly income account program offers 6.6 percent payable monthly, while the 5-year NSC continues to offer 6.8 percent compounded annually. On the 1 year term deposit the interest rate is 5.5% while on the 5 year deposit the rate is 6.7% per annum.
“The interest rates of the various savings plans for the third quarter of fiscal year 2021-22 beginning on October 1, 2021 and ending on December 31, 2021, will remain unchanged from the current rates applicable for the second quarter (June from 1 2021 to 30 September 2021) for the 2021-22 fiscal year, “the Ministry of Finance said in a notification.
Small savings interest rates are released quarterly.
The one-year term deposit plan will continue to earn an interest rate of 5.5%, while the Girls Savings Plan’s Sukanya Samriddhi Yojana account will earn 7.6%.
The interest rate on the five-year senior savings plan would be maintained at 7.4%. The interests of the senior citizens’ scheme are paid quarterly.
The interest rate on savings deposits will remain at 4 percent per annum.
One- to five-year term deposits will pay an interest rate in the range of 5.5 to 6.7 percent, payable quarterly, while the interest rate on five-year recurring deposits will pay off. higher interest of 5.8 percent.
Small savings plans will continue to offer small investors better rates than other fixed income solutions such as bank term deposits (FDs).
For example, the five-year fixed deposit under the Postal Savings Plan gives an interest rate of 6.7%. The best Indian banks usually offer interest rates of 5.4-5.5% on a fixed deposit of the same period.
Never miss a story! Stay connected and informed with Mint. Download our app now !!