For the June quarter, the government kept interest rates on various small savings schemes, including popular ones like the Public Provident Fund (PPF) and the Sukanya Samriddhi Scheme, unchanged. Sukanya Samriddhi Yojana currently offers 7.6%, Senior Citizen Saving Scheme 7.4%, and PPF 7.1 per cent among small savings schemes. SBI's 5-10 year fixed deposits, on the other hand, drew interest rates of 5.50 per cent. Small savings scheme interest rates are reviewed on a quarterly basis.
"The rate of interest on various small savings schemes for the first quarter of the financial year 2022-23, beginning on 1st April 2022 and ending on 30th June 2022, shall remain unchanged from the current rates applicable for the fourth quarter of FY 2021-22 (1st January 2022 to 31st March 2022)," the finance ministry said in a statement.
The EPFO, or Employees' Provident Fund Organisation, decided earlier this month to cut the interest rate to a four-decade low of 8.1 per cent for 2021-22. For 2020-21, the rate was 8.5 per cent.
The one- to five-year term deposits, among the other post office small savings schemes, will continue to pay 5.5 per cent to 6.7 per cent. The rate of interest on savings deposits will remain at 4% per year.
The Kisan Vikas Patra will continue to offer 6.9% compounded annually, with the investment amount doubling in 124 months (10 years and 4 months).
It's also worth noting that post offices will stop paying cash interest on Senior Citizen Savings Scheme, Monthly Income Scheme, and Term Deposit accounts as of April 1, 2022. Only the account holder's post office savings account or bank account will receive interest.
If the account holder is unable to link his or her savings account with a Senior Citizen Savings Scheme, Monthly Income Scheme, or Term Deposit account, the outstanding interest must be paid by credit in a post office savings account or by check.
Senior Citizen Savings Scheme, Monthly Income Scheme, and Term Deposit account holders are being urged to link their savings account (either a Post Office Savings Account or a Bank account) for interest paid by the Department of Post.
|Sl.||Savings Scheme||Rate of interest w.e.f
01.04.2022 to 31.06.2022
|01.||Post Office Savings Account||4.0|
|02.||1 Year Time Deposit||5.5|
|03.||2 Year Time Deposit||5.5|
|04.||3 Year Time Deposit||5.5|
|0fi.||5 Year Time Deposit||6.7|
|06.||5 Year Recurring Deposit Scheme||5.8|
|07.||Senior Citizen Savings Scheme||7.4|
|08.||Monthly Income Account||6.6|
|09.||National Savings Certificate (VIII Issue)||6.8|
|10.||Public Provident Fund Scheme||7.1|
|11.||Kisan Vikas Patra||6.9 (will mature in 124 months)|
|12.||Sukanya Samriddhi Account Scheme||7.6|