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Govt keeps small savings rates unchanged for July-September

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.

June 30, 2022 / 07:32 PM IST

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 INSTRUMENTINTEREST RATE FOR JUL-SEP 2022
Savings deposit4.0%
One-year time deposit5.5%
Two-year time deposit5.5%
Three-year time deposit5.5%
Five-year time deposit6.7%
Five-year recurring deposit5.8%
Senior Citizen Savings Scheme7.4%
Monthly Income Account6.6%
National Savings Certificate6.8%
Public Provident Fund Scheme7.1%
Kisan Vikas Patra6.9%
Sukanya Samriddhi Account Scheme7.6%

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.
Moneycontrol News
first published: Jun 30, 2022 07:32 pm
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