The government has not changed the interest rates on various small savings schemes, including Public Provident Fund (PPF) and Sukanya Samriddhi Yojana schemes. Keeping the rates stable and not coming down is good news for the investors.
new Delhi. The government has not changed the interest rates on various small savings schemes, including Public Provident Fund (PPF) and Sukanya Samriddhi Yojana schemes. Keeping the rates stable and not coming down is good news for the investors. Small savings schemes- Sukanya Samriddhi Yojana offers interest at the rate of 7.6%, Senior Citizen Savings Scheme 7.4% and PPF 7.1%.
On the other hand, SBI’s fixed deposit of 5 to 10 years will get 5.50% interest rate. Explain that the interest rates for small savings schemes are reviewed on a quarterly basis.
“The interest rate on various small savings schemes will remain unchanged for the first quarter of the financial year 2022-23 (starting from April 1, 2022 and ending on June 30, 2022),” the finance ministry said in a statement. The rates for the fourth quarter of 2021-22, which ends on March 31, will continue to be available in the next quarter as well.
Earlier this month, the EPFO had decided to bring down the interest rate for 2021-22 to the lowest level of 4 decades at 8.1%. This rate was 8.5% for 2020-21.
It is worth noting that from April 1, 2022, post offices will stop paying interest in cash
on Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts. Interest will be credited only to the account holder’s post office savings account or bank account.
In case the account holder is not able to link his/her savings account with Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts, then the outstanding interest will be paid only by deposit or cheque in the post office savings account.
The Department of Posts has urged senior citizen savings scheme, monthly income scheme and fixed deposit account holders to link their savings account (either post office savings account or bank account) for interest payment.
