Interest rates unchanged on small savings

The government on Thursday kept interest rates unchanged on small savings schemes, including National Savings Certificate and Public Provident Fund, for the second quarter of 2022-23 amid high inflation and rising interest rate.

The interest rate on small savings schemes has not been revised since the first quarter of 2020-21. PPF and NSC will continue to draw an annual interest rate of 7.1% and 6.8%, respectively, in the second quarter of this fiscal.

"The rates of interest on various small savings schemes for the second quarter of the financial year 2022-23, starting from July 1, 2022, and ending on September 30, 2022, shall remain unchanged from those notified for the first quarter (April 1, 2022, to June 30, 2022) for FY 2022-23," the finance ministry said in a notification.

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

The one-year term deposit scheme will continue to earn an interest rate of 5.5% in the second quarter.-

(), the country's biggest lender, recently raised the interest rate on one-year fixed deposit to 5.10%. The Reserve Bank of India (RBI) had raised the repo rate by 40 basis points and 50 basis points in May and June, respectively.

The interest rate on the five-year senior citizens' savings scheme will be retained at 7.4%. The interest on the senior citizens' scheme is paid on a quarterly basis.