The government has yet again decided to keep the interest rates unchanged on small savings schemes and post office schemes. For the first quarter of FY2022-23 (April-June 2022), interest rates on small savings schemes, like the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY), will continue to earn the same interest rate as they were earning during the quarter ended March 31, 2022. The Ministry of Finance made this announcement via a circular dated December 31, 2021.

New investments made during the January-March 2022 quarter into these schemes will also earn the same interest rates as in the previous quarter. 

According to the circular, for the first quarter of FY2022-23, PPF will continue to earn 7.10 per cent. The Senior Citizens’ Savings Scheme (SCSS) will continue to earn 7.40 per cent, and post office time deposits will fetch 5.5-6.7 per cent. The interest rates will be applicable for the period April 1, 2022, to June 30, 2022. 

The government maintaining status quo on small savings rates is good news for fixed income investors. This especially since FD rates are at decadal lows, and the Employees' Provident Fund (EPF) interest rate for FY2021-22 has been slashed to a 40-year low to 8.1 per cent.