Interest rates on small savings schemes remain unchanged

The government on Thursday kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the third quarter of 2021-22 amid the Covid-19 pandemic and elevated level of inflation. Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.1 per cent and 6.8 per cent, respectively. “The rates of interest on various small savings schemes for the third quarter of the financial year 2021-22 starting from October 1, 2021, and ending on December 31, 2021, shall remain unchanged from the current rates applicable for the second quarter (June 1, 2021 to September 30, 2021) for FY 2021-22,” the finance ministry said in a notification. According to analysts, the upcoming Uttar Pradesh assembly elections may also have been a factor behind the government's decision to keep rates unchanged.