Interest rates on small saving schemes to remain unchanged in April-June quarter

The Finance Ministry on Friday said there will be no change in small saving schemes such as PPF and Sukanya Samridhi for the three-month period from April-June.

Accordingly, the interest rate on the Public Provident Fund (PPF) will continue to be 7.1 per cent, while it will be 8.2 per cent on the Sukanya Samridhi scheme.  

The small savings schemes basket comprises 12 instruments, including the National Saving Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP) and Sukanya Samridhi Scheme.

• Read more: Post Office Deposits, Senior Citizen Savings Scheme and Public Provident Fund: Are you aware of these recent key changes and how it will impact your savings?

Interest rate resetting

The government resets the interest rate at the beginning of every quarter. Theoretically, since 2016, interest rate resetting has been done based on yields of government securities of the corresponding maturity, with some spread on the scheme for senior citizens, as advised by the Shyamala Gopinath Committee. However, in practice, the interest rate changes are made considering several other factors, including political ones.