In a low interest rate environment, PPF and other small savings investments will continue to offer similar returns as earlier. The Small savings schemes interest rates will remain the same for January – February – March 2022 as they were in the October-November-December 2021 quarter.

The interest rate on PPF remains at 7.1 per cent per annum while for the Senior Citizen Savings Scheme, the interest rate is 7.4 per cent per annum. Sukanya Samriddhi Account holders will continue to get 7.6 per cent compounded annually on their account balance.

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 interest rates on post office schemes are set by the government at the beginning of each quarter of the financial year. The reset in small savings interest rate is based on the average yield of the government securities. The rate of interest on the various Small savings schemes such as National Savings Certificates (NSC), KVP, Time-deposits, Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY) etc remains same for three months and then are subject to change.

Even if the rates are changed, the new rates do not apply to all investors of all post office schemes. For NSC, KVP, Time deposits, Senior Citizens Savings Scheme (SCSS), the rate of interest remains fixed for investors until maturity.

PPF and Sukanya Samriddhi Yojana (SSY) are the two prominent small savings schemes that witness a revision in the rate as and when the government revises them.

National Savings Certificates (NSC), KVP, Time-deposits, Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY) etc., will continue to offer the same rate as that of the previous quarter of July- August-September quarter of 2021.

With no change in the post office small savings schemes interest rate, the fixed-income investors can heave a sigh of relief. The status quo in PO savings schemes interest rate could continue to keep them attractive compared to bank fixed deposits. Currently, most leading banks are offering interest rates of about 5 to 5.5 per cent over 1 to 10-year deposits.