The government has maintained interest rates steady on various small savings schemes, including popular schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Scheme. Among the small savings schemes, Sukanya Samriddhi Yojana offers 7.6%, Senior Citizen saving scheme 7.4% and PPF 7.1%. On the other hand, SBI’s 5-10 year fixed deposits attracted 5.50% interest rates. Interest rates for small savings schemes are reviewed on a quarterly basis.
“The rate of interest on various small savings schemes for the first quarter of financial year 2022-23, starting from 1st April 2022 and ending on 30th June, 2022, shall remain unchanged from the current rates applicable for the fourth quarter (1st January 2022 to 31st March 2022) of FY 2021-22,” the finance ministry said in a statement.
Earlier this month, the EPFO, earlier this month, decided to lower the interest rate to four decade low of 8.1% for 2021-22. The rate was 8.5% for 2020-21.
It has to be noted that from from April 1, 2022, post offices will stop paying interest on Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts in cash. The interest will only be credited only in account holder’s post office savings account or bank account.
In case the account holder is not able to link his/her savings account with Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts accounts, the outstanding interest should be paid only through credit in post office savings account or by cheque.
The department of Post has urged Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts account holders to link their savings account (either Post Office Savings Account or Bank account) for interest payment.
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