Post Office Schemes: Investing in small savings schemes including Public Provident Fund (PPF) and National Savings Certificate (NSC) first know here what are the interest rates on them.
INterest Rates on Post Office Schemes: The Modi government last week maintained the status quo on the interest rates of small savings schemes, which has brought relief to crores of small savers. Those who benefit from the high interest rates offered by these schemes. For the third quarter of FY22, all small savings schemes like NSC, PPF, Senior Citizen, Sukanya Samriddhi will continue to earn the same interest rates as they were getting in the July-September quarter.
The annual interest rate on Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to be 7.1% and 6.8% respectively. Interest rate of 5.5% will be available on one year term deposit scheme, whereas, interest rate of 7.6% will be available on Sukanya Samriddhi Yojana account. The interest rate for the five-year Senior Citizens Savings Scheme will be 7.4%. Interest on Senior Citizens Savings Scheme is paid on quarterly basis. The interest rate on savings deposits was retained at 4% per annum.
Interest rate of small savings schemes for the October-December quarter of the financial year 22
| scheme | interest rates | compounding frequency |
| savings account | 4% | annually |
| one year time deposit | 5.5% | quarter |
| two year time deposit | 5.5% | quarter |
| three year time deposit | 5.5% | quarter |
| five year time deposit | 6.7% | quarter |
| Five years recurring deposit | 5.8% | quarter |
| Five Year Senior Citizen Saving Scheme | 7.4% | quarter and paid |
| Five Year Monthly Income Account | 6.6% | Monthly and Paid |
| Five years National Savings Certificate | 6.8% | annually |
| General Provident Fund (PPF) | 7.1% | annually |
| Sukanya Samriddhi Yojana | 7.6% | annually |
| Kisan Vikas Patra | 6.9% | annually |
The status quo on the rates of small savings schemes comes as a big relief to the savers amid low interest rates on fixed deposits by banks. The rates offered by the government on these schemes are 100-250 basis points higher than the rates offered by banks on similar deposits.
