PPF, different small financial savings schemes rates of interest keep unchanged

The rates of interest on small financial savings schemes, together with NSC and PPF, have been stored unchanged for the fourth quarter of 2021-22 on Friday amid rising instances of the extra contagious coronavirus variant Omicron and an elevated degree of inflation. 

Public Provident Fund (PPF) and National Savings Certificate (NSC) will proceed to hold an annual rate of interest of seven.1% and 6.8%, respectively, within the fourth quarter as nicely.

“The rates of interest on various small savings schemes for the third quarter of the financial year 2021-22 starting from January 1, 2022, and ending on March 31, 2022, shall remain unchanged from the current rates applicable for the third quarter (October  1, 2021 to December 31, 2021) for FY 2021-22,” the finance ministry stated in a notification.

The determination comes within the run-up to the meeting elections in 5 states – Uttar Pradesh, Uttarakhand, Punjab, Himachal Pradesh and Goa scheduled to be held subsequent yr. According to analysts, the choice to maintain charges intact was taken by the Centre in view of this, reported information company PTI.

Uttar Pradesh is the second highest contributor to the small financial savings scheme after West Bengal.  

Earlier this yr, in the course of the West Bengal meeting polls, the Centre determined to cut back the rate of interest. But the finance ministry swiftly revoked a steep rate of interest minimize of as much as 1.1% for the primary quarter on small financial savings schemes, citing oversight.

As a consequence, the primary quarter charges have been retained on the degree of the fourth quarter of the final monetary yr. The minimize was touted because the steepest minimize in lots of many years.

Interest charges for small financial savings schemes are notified on a quarterly foundation.

One-year time period deposit scheme will proceed to earn an rate of interest of 5.5% in the course of the second quarter of the present fiscal, whereas the woman little one financial savings scheme Sukanya Samriddhi Yojana account will earn 7.6%.

The rate of interest on the five-year senior residents financial savings scheme could be retained at 7.4%. The curiosity on the senior residents’ scheme is paid quarterly.

Interest fee on financial savings deposits will proceed to be 4% each year.

Term deposits of 1 to 5 years will fetch an rate of interest within the vary of 5.5-6.7%, to be paid quarterly, whereas the rate of interest on five-year recurring deposits will earn a better curiosity of 5.8%. 

With inputs from businesses. 

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