Govt keeps rates unchanged on small savings plans for September quarter

The government on Thursday kept rates unchanged on small savings plans, including NSC and PPF, for the second quarter of 2022-2023 amid high inflation and rising interest rates.

The interest rate on small savings plans has not been revised since the first quarter of 2020-21.

Public Provident Fund (PPF) and National Savings Certificate (NSC) will maintain annual interest rates of 7.1 percent and 6.8 percent, respectively, in the second quarter of this fiscal year.

”Interest rates on several small savings plans for the second quarter of fiscal year 2022-23, beginning July 1, 2022 and ending September 30, 2022, remain unchanged from those for the first quarter (April 1, 2022 to June 30, 2022 ) for FY 2022-23,” the Treasury Department said in a statement.

The interest rates for small savings schemes are announced quarterly.

The one-year term deposit continues to yield an interest of 5.5 percent in the second quarter.

It should be noted that the country’s largest lender, the State Bank of India (SBI), has raised its one-year fixed deposit rate by 5.10 percent after two consecutive 90 basis point increases in the benchmark interest rate to curb high inflation. .

Reserve Bank of India (RBI) raised the repo rate by 40 basis points and 50 basis points respectively in May and June.

Retail inflation stood at 7.04 percent in May, remaining above the RBI’s tolerance level for the fifth straight month.

The interest on the five-year senior savings plan will remain at 7.4 percent. The interest on the senior scheme is paid quarterly.

The savings program for girls, Sukanya Samriddhi Yojana, will yield 7.6 percent.

The interest on savings deposits remains 4 percent per year.

Term deposits of one to five years will yield an interest of 5.5-6.7 percent, which must be paid quarterly, while the interest on five-year recurring deposits will yield a higher interest of 5.8 percent.

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