Finance Ministry: Small Savings Schemes Interest Rates for FY 2022-23 Remains Unchanged

The Union Government of India announced that the interest rates of small savings schemes, including the Public Provident Fund (PPF) and Sukanya Samriddhi Scheme, will be unchanged.

The Ministry of Finance said that the interest rates for small savings schemes for Q1 of FY 2022-23 remain unchanged, and it will continue the same interest rates applicable for Q4 of FY 2021-22.

Table showing the present interest rates on small saving schemes:

Name of the scheme Interest rate
Savings deposit 4.0%
One-year time deposit 5.5%
Two-year time deposit 5.5%
Three-year time deposit 5.5%
Five-year time deposit 6.7%
Five-year recurring deposit 5.8%
Monthly Income Account 6.6%
Senior Citizen Savings Scheme 7.4%
Public Provident Fund Scheme 7.1%
National Savings Certificate 6.8%
Sukanya Samriddhi Account Scheme 7.6%
Kisan Vikas Patra 6.9%

Also, the department said that this is the 8th consecutive quarter to continue interest rates unchanged despite changes in the interlinked interest rates of government bonds.

It is to be noted that recently Union Government has reduced the interest rate on the Provident Fund (PF) deposits to 8.1% for 2021-22. It is a four-decade low-interest rate, where the PF deposit rate for 2020-21 was 8.5%.

The department clarified that from 1st April 2022, the interest on the monthly income scheme, senior citizen savings scheme and term deposit will not be paid in cash but only be credited to the account holder’s bank account or post office savings account.

The government decided to keep the interest rates unchanged despite the Reserve Bank of India (RBI) pointing out to reduce the interest rates by 9-118 basis points for the Apr-June’22 quarter.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in

You May Also Like

Save Your Tax By Claiming Medical Expenditure Under Section 80D

The current financial year is near to end on 31st March. You…

Senior Citizens: PMVVY or SCSS investment scheme, which one is best?

Due to a fall in the interest rates offered on fixed deposits…

EPFO lowers the interest rate on PF deposits to 8.5% for FY 2019-20

The Employees’ Provident Fund Organisation (EPFO) has notified the interest rate for…

Pensioners Who Opted for Commutation To Receive Higher Pension

According to a notification sent by the labour ministry dated 20 February…