PPF, NSC, Post office savings scheme rates unchanged. Check details
- The announcement made by the finance ministry means that the interest rate earned during the July to September quarter of FY 22 will remain unchanged for the next quarter.
The Union ministry of finance on Thursday announced that it is keeping the interest rates of small saving schemes such as Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and other post-office schemes unchanged. This is the sixth quarter (October-December) in a row that the interest rates were kept unchanged.
The announcement made by the finance ministry means that the interest rate earned during the July to September quarter of FY 22 will remain unchanged for the next quarter. New investments which may be made during the October-December 2021 quarter will also garner the same interest rates as they did in the previous quarter.
The finance ministry in its circular said that the PPF will continue to garner 7.10% interest rate, while the National Savings Certificate (NSC) will continue to fetch 6.8%, the Post Office Monthly Income Scheme Account will earn 6.6% and the Senior Citizen Savings Scheme the interest rate will be 7.4%.
The five-year monthly income account scheme is offering 6.6% payable monthly. The five-year NSC continues to offer 6.8% compounded annually. The one-year time deposit, the rate of interest is at 5.5% while on the five-year deposit the rate is 6.7% per annum. “The rates of interest on various small savings schemes for the third quarter of the financial year 2021-22 starting from October 1, 2021, and ending on December 31, 2021, shall remain unchanged from the current rates applicable for the second quarter (June 1, 2021 to September 30, 2021) for FY 2021-22,” the finance ministry said.
The one-year term deposit scheme will continue to garner an interest rate of 5.5%. The girl child saving scheme Sukanya Samriddhi Yojana account will earn 7.6% interest. The five-year senior citizens' savings scheme will continue to retain the 7.4% interest rate and is paid on a quarterly basis. The interest rate for saving deposits will continue to be 4% per annum.
The term deposits of one to five years will fetch interest rates at 5.5-6.7% and will be paid quarterly. The interest rates of the five-year recurring deposits will earn a higher interest of 5.8%. Small investors will be able to fetch better interest rates than bank fixed deposits (FDs) through these small savings schemes.