Govt keeps interest rates unchanged on small savings schemes

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Govt keeps interest rates unchanged on small savings schemes

The government has kept interest rates unchanged on small savings schemes, including NSC and PPF, for the second quarter of 2022 -- 23 due to high inflation and rising interest rate.

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

In the second quarter of this fiscal, the Public Provident Fund PPF and National Savings Certificate NSC will have an annual interest rate of 7.1 per cent and 6.8 per cent.

The finance ministry said in a notification that interest on various small savings schemes for the second quarter of the financial year 2022 - 23 will not change from July 1, 2022, to June 30, 2022 for FY 2022-23.

Interest rates for small savings schemes are notified on a quarterly basis.

The interest rate for the one-year term deposit scheme will be 5.5 per cent in the second quarter.

The country's biggest lender State Bank of India SBI raised interest rate on one-year fixed deposit 5.10 per cent after two consecutive increases in benchmark rate by 90 basis points to tame high inflation.

In May and June, RBI raised the repo rate by 40 basis points and 50 basis points.

Retail inflation was above the RBI's tolerance level for the fifth month in a row, rising to 7.04 per cent in May.

The interest rate on the five-year senior citizens' savings scheme will be retained at 7.4 per cent. The senior citizens' scheme gets a lot of interest on a quarterly basis.

Sukanya Samriddhi Yojana will get 7.6 per cent of the girl child savings scheme.

The interest rate on savings deposits will be at 4 per cent per annum.

Term deposits of one to five years will earn an interest rate of 5.5 - 6.7 per cent and the interest rate on five-year recurring deposits will earn a higher interest rate of 5.8 per cent.