The government on Friday left interest rates unchanged for small savings schemes such as Public Provident Fund, National Savings Certificates and others. The rates have been frozen for the seventh quarter in a row (January-March 2021-22), bringing much needed relief in the new year for middle class investors who park their savings in such plans for better returns.
A finance ministry notification said the rate shall remain unchanged from the current rates applicable for the third quarter (October 1to December 31) of fiscal year 2021-22.
The five-year post office deposit scheme will continue to offer a 6. 7%, while the PPF will give a 7. 1% return. The returns on small savings are comparatively higher against the backdrop of the low interest rate regime overall. The senior citizens’ savings will also continue to have a rate of 7. 4% and the Sukanya Samriddhi Yojana will still get a return of 7. 6%.
The last round of sharp rate cuts unveiled in April had to be rolled back due to protests. The cuts came in the midst of the West Bengal elections and the government promptly reversed the decision and decided to maintain a status quo. The concerns over price-rise and stubborn petrol and diesel prices had prompted the government to reverse the decision.