With this, the interest rates will be retained for nine consecutive quarters, despite the central bank’s reduction in the benchmark lending rate by 125 basis points since February last year to 5.25%.
To be sure, the small saving rates are often tweaked, factoring in expected yields of government securities of comparable tenures. The G-sec yields have inched up over the past one month in the wake of the West Asia war.
According to a notification by the Department of Economic Affairs, deposits under the PPF and Sukanya Samriddhi accounts will continue to offer interests of 7.1% and 8.2%, respectively, for the March quarter.
The rates will also remain unchanged for Senior Citizen Savings Scheme (8.2%), National Savings Certificate (7.7%), Kisan Vikas Patra (7.5% for maturity in 115 months), savings deposits (4%), one-year deposits (6.9%), two-year deposits (7%), three-year deposits (7.1%), five-year deposits (7.5%), five-year recurring deposits (6.7%) and monthly income account scheme (7.4%).
Collections under the small savings schemes are used by the government to part-finance the central government’s fiscal deficit.
The government aims to draw Rs 3.88 lakh crore from the National Small Savings Fund in FY27, higher than Rs 3.43 lakh crore (revised estimate) in the current fiscal.
The Centre aims to contain its fiscal deficit at Rs 16.96 lakh crore in FY27, against Rs 15.58 lakh crore this financial year.