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PPF, NSC, Sukanya Samriddhi, other small savings schemes interest rates for April-June 2022 quarter remain unchanged

The government has maintained status quo on the interest rate of various small savings schemes for the April-June 2022 quarter. Schemes including NSC and Public Provident Fund will continue to fetch the same interest rate as they were earning during the quarter ending March 31, 2022. The rates have remained the same since first quarter of 2020-21.

ET Now Digital

Updated Mar 31, 2022, 18:54 IST

Small savings schemes interest rates for April-June 2022 quarter remain unchanged. Check here

New Delhi: Owing to the growing inflation, the government on Thursday maintained the status quo and decided to keep the interest rates on small savings schemes, including NSC and Public Provident Fund (PPF), unchanged for the first quarter of 2022-23. The interest rates on small savings schemes like PPF and Sukanya Samriddhi Yojana (SSY) have not been tweaked since the first quarter of 2020-21.

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

For the April-June 2022 quarter, the schemes will continue to yield the same interest rate as they were earning during the quarter ending March 31, 2022. Moreover, any new investments made into these schemes during the January-March 2022 quarter will also earn the same interest rates.

The finance ministry issued a notification, which read, "The rate of interest on various small savings schemes for the first quarter of the financial year 2022-23, starting from April 1, 2022, and ending on June 30, 2022, shall remain unchanged from the current rates applicable for the fourth quarter (January 1, 2022, to March 31, 2022) for FY 2021-22.”

Interest rates on small savings schemes

Savings deposits - 4 per cent

1, 2 and 3-year term deposit scheme - 5.5 per cent (paid quarterly)

5-year term deposit scheme - 6.7 per cent (paid quarterly)

5-year recurring deposits - 5.8 per cent (paid quarterly)

National Savings Certificate (NSC) - 6.8 per cent

Public Provident Fund (PPF) - 7.1 per cent

5-year senior citizens' savings scheme - 7.4 per cent (paid quarterly)

Sukanya Samriddhi Yojana - 7.6 per cent

How are interest rates for small savings schemes decided

Reviewed quarterly, the formula to decide the interest rates for small savings schemes was given by the Shyamala Gopinath Committee. The committee had suggested that the interest rates of different schemes should be 25-100 bps higher than the yields of the government bonds of similar maturity.

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