[ad_1]
The government on Thursday kept interest rates unchanged on small savings schemes, including NSC and PPF, 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.
Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to have an annual interest rate of 7.1 per cent and 6.8 per cent, 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 per cent in the second quarter.
It is to be noted that the country’s biggest lender State Bank of India (SBI) raised interest rate on one-year fixed deposit 5.10 per cent following two consecutive increase in benchmark rate by 90 basis points to tame high inflation.
Reserve Bank of India (RBI) raised repo rate by 40 basis points and 50 basis points in May and June, respectively.
Retail inflation stood at 7.04 per cent in May, remaining above the RBI’s tolerance level for the fifth month in a row.
The interest rate on the five-year senior citizens’ savings scheme will be retained at 7.4 per cent. The interest on the senior citizens’ scheme is paid on a quarterly basis.
The girl child savings scheme Sukanya Samriddhi Yojana will fetch 7.6 per cent.
The interest rate on savings deposits will continue to be at 4 per cent per annum.
Term deposits of one to five years will fetch an interest rate in the range of 5.5-6.7 per cent, to be paid quarterly while the interest rate on five-year recurring deposits will earn a higher interest of 5.8 per cent.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
