The Central government kept the interest rates on small savings schemes unchanged in July-September, according to statement on June 30.The rates have now been kept unchanged for nine consecutive quarters. The interest rates on the various instruments range from 4 percent to 7.6 percent.
|SMALL SAVINGS INSTRUMENT||INTEREST RATE FOR JUL-SEP 2022|
|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%|
Rates on small savings instruments are linked with government bond yields, which have risen in recent months amid monetary tightening by the Reserve Bank of India.
The RBI’s rate-setting panel has raised the key policy rate by 90 basis points since early May as it seeks to curb inflation. The central bank is expected to hike policy rates again over the next couple of meetings.
Small savings rates, while set by the government, are linked to market yields on government securities.The central bank has periodically called on the government to stick to the formula-based approach to setting small savings interest rates.