Small-scale saving strategies are on the rise! PPF and Sukanya Samriddhi interest rates will remain unchanged for the next three months.

For the third quarter of the fiscal year 2021-2022, the Finance Ministry has decided not to revise the interest rates on modest savings programmes. This means that interest rates on schemes such as Public Provident Funds (PPF), Senior Citizens Saving Schemes (SCSS), and National Saving Certificates (NSC), among others, would remain unchanged for the next three months, beginning in July 2021. Small savings programmes, for those who are unfamiliar, are offered by the Government of India, banks, or public financial institutions to encourage citizens to make small contributions for their future.

In the absence of a change, an investor will get an annual interest rate of 7.1 percent on a PPF. Similarly, the NSC scheme’s interest rate has remained steady at 6.8 percent, while the Sukanya Samriddhi Yojana will earn a 7.6 percent annual interest rate.

Every quarter, the Finance Ministry reviews the interest rates for modest savings schemes. However, the ministry has maintained interest rates constant for the last five quarters, including the current one.

Millions of Indian investors deposit their money into tiny tax-saving programmes, which enable them save tax under Section 80C of the Income Tax Act.

Because the majority of small savings schemes are supported by the government, they are among the safest investment choices in India.

Previously, on March 31, the Finance Ministry reduced interest rates on small savings programmes by a fraction. The ministry, however, rescinded the judgement, claiming that it was a “oversight.”