The Department of Economic Affairs (DEA), Ministry of Finance, has kept the rate of interest on various small savings schemes unchanged for the first quarter (April-June, 2022) of FY23.
- In this regard, interest rates on national savings certificate (6.8%), senior citizen savings schemes (7.4%), public provident fund scheme (7.1%), Kishan Vikas Patra (6.9%), Sukanya Samriddhi Account scheme (7.6%) for the Q1FY23 are same as Q4FY22.
Table showing Interest Rates on Small Saving Schemes for Q1FY23 (April-June, 2022)
| Instrument | Maturity (years) | Interest (%) | Minimum amount for Opening Account (Rs) |
|---|---|---|---|
| Post Office Saving Account (SB) | – | 4 | 500 |
| 1-year Post Office Time Deposit Account (TD) | 1 | 5.5 | 1000 |
| 2-year Post Office TD | 2 | 5.5 | 1000 |
| 3-year Post Office TD | 3 | 5.5 | 1000 |
| 5-year Post Office TD | 5 | 6.7 | 1000 |
| 5-year Post Office Recurring Deposit Account (RD) | 5 | 5.8 | 100/month |
| Senior Citizens Savings Scheme Account (SCSS) | 5 | 7.4 | 1000 |
| Monthly Income Account (MIS) | 5 | 6.6 | 1000 |
| National Savings Certificate (NSC) | 5 | 6.8 | 1000 |
| Public Provident Fund (PPF) | 15 | 7.1 | 500 |
| Kisan Vikas Patra (KVP) | 124 months | 6.9 | 1000 |
| Sukanya Samriddhi Account (SSA) | 21 | 7.6 | 250 |
What are Small Savings Schemes?
These are a set of savings instruments managed by the Central Government to encourage citizens to save regularly irrespective of their age. They provide returns generally higher than Bank Fixed Deposits (FDs) along with sovereign guarantee and tax benefits.
- All deposits received under various small savings schemes are pooled in the National Small Savings Fund (NSSF) which is used by the Central Government to finance its fiscal deficit.
Interest Revision Process of Small Saving Schemes:
The revision in their interest rate is made by the Ministry of Finance on quarterly basis i.e. April-June, July-September, October-December, and January-March, in exercise of its power conferred by Rule 9 (1) of the Government Savings Promotion General Rules, 2018.
Point to be noted:
Recently, the interest rate on Employees’ Provident Fund Organisation (EPFO) deposits was cut to a four-decade low of 8.1% for FY22 from 8.5%.
Recent Related News:
The Union Finance Ministry appointed Vinodanand Jha, a 1983-batch retired IRS officer as the chairperson of the Prevention of Money Laundering Act, 2002 (PMLA) Adjudicating Authority, New Delhi, Delhi till the completion of his tenure i.e. upto 22nd June 2023.
About Ministry of Finance:
Union Minister– Nirmala Sitharaman (Constituency – RajyaSabha, Karnataka)
Ministers of State– Pankaj Chaudhary (Constituency – Maharajganj, Uttar Pradesh); Dr. Bhagwat Kishanrao Karad (Constituency – Rajya sabha Maharashtra)
