This means that the interest rates earned in the July to September quarter of FY22 will be same for the next quarter. In addition, new investments made during the October-December 2021 quarter will also garner same interest rates as in the previous quarter.

As per ministry’s circular, PPF will continue to earn 7.10%, the NSC will fetch 6.8%, and Post Office Monthly Income Scheme Account will earn 6.6%, as well as for Senior Citizen Savings Scheme, the interest rate is 7.4%.

The 5-year Monthly Income Account Scheme is offering 6.6 per cent payable monthly, while the 5-year NSC continues to offer 6.8 per cent compounded annually. On the 1-year time deposit, the rate of interest stands at 5.5 per cent while on the 5-year deposit, the rate is 6.7 per cent per annum.

The small savings schemes will continue to fetch small investors better rates than other fixed income avenues such as bank fixed deposits (FDs).

For example, the five-year fixed deposit under Post Office Savings Scheme gives a 6.7% interest rate. Top banks in India generally offer 5.4-5.5% interest rates on a fixed deposit of the same period.

Earlier on 1 April, the Centre had swiftly revoked a steep interest rate cut of up to 1.1% for the first quarter on small savings schemes, citing oversight.

As a result, the first quarter rates were retained at the level of the fourth quarter of the last fiscal year. The cut was touted as the steepest cut in many decades.

Interest rates for small savings schemes are notified on a quarterly basis.