Govt makes no changes to small savings schemes interest rates for April-June

This is the eighth consecutive quarter in which the interest rates on small savings instruments have been left unchanged even though the corresponding government bond yields have fluctuated.

Siddharth Upasani

March 31, 2022 / 05:28 PM IST

The finance ministry has left interest rates on small savings schemes unchanged for April-June 2022.

The interest rates on the various instruments range from 4.0 percent to 7.6 percent.

SMALL SAVINGS INSTRUMENT	INTEREST RATE FOR APR-JUN 2022
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%
Senior Citizen Savings Scheme	7.4%
Monthly Income Account	6.6%
National Savings Certificate	6.8%
Public Provident Fund Scheme	7.1%
Kisan Vikas Patra	6.9%
Sukanya Samriddhi Account Scheme	7.6%

This is the eighth consecutive quarter for which no changes have been made to the interest rates on small savings instruments even though there have been changes in the government bond yields these interest rates are linked with.

These interest rates, while set by the government, are linked to market yields on government securities at a spread of 0-100 basis points over the yield of these securities of comparable maturities.

In December 2021-February 2022, which is the reference period for small savings interest rates for April-June 2022, the yield on five-year government bonds rose sharply, with that on the 5.74%, 2026 bond jumping 36 basis points over the period to 6.05 percent from 5.69 percent.

The 10-year bond yield rose by an even greater amount of 44 basis points over the same period.