PPF and Other Small Savings Investments Interest Rates Announced; Check Details

PPF and other small savings investments will continue to provide similar returns in a low-interest rate environment. The interest rates on Small savings schemes will remain the same in April – May – June 2022 as they were in the January-March 2022 quarter. Ministry of Finance made this announcement via a circular dated March 31, 2022.

The PPF interest rate remains at 7.1 percent per year, while the Senior Citizen Savings Scheme interest rate is 7.4 percent per year. Sukanya Samriddhi Account holders will continue to receive 7.6 percent annual compounding on their account balance.

The 5-year Monthly Income Account Scheme now pays 6.6 percent monthly, while the 5-year NSC pays 6.8 percent compounded annually. The interest rate on a one-year time deposit is 5.5 percent, while the rate on a five-year deposit is 6.7 percent per year.

The government determines the interest rates on post office schemes at the start of each fiscal quarter. The small savings interest rate is reset based on the average yield of government securities. The interest rate on various Small savings schemes, such as National Savings Certificates (NSC), KVP, Time Deposits, Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), and so on, remains constant for three months and then changes.

The interest rate on 5-year senior citizen saving scheme would also continue to deliver 7.40 per cent for the first quarter of new fiscal. However, savings interest rate would continue at 4 per cent per annum.

New investments made into these schemes during the January-March 2022 quarter will earn the same interest rates as the previous quarter.
According to the circular, PPF will continue to earn 7.10% in the first quarter of fiscal year 2022-23. The Senior Citizens Savings Scheme (SCSS) will continue to earn 7.40%, and post office time deposits will earn 5.5-6.70%. The rates will be in effect from April 1, 20-2022 to June 30, 2022.