Government Maintains Interest Rates on Small Savings Schemes for Q1 FY 2024-25
The government has decided to keep the interest rates unchanged on various small savings schemes for the first quarter of the next fiscal year, starting from April 1, 2024. This decision was confirmed through a notification issued by the finance ministry.
The notification stated, “The rates of interest on various small savings schemes for the first quarter of FY 2024-25, starting from April 1, 2024, and ending on June 30, 2024, shall remain unchanged from those notified for the fourth quarter (January 1, 2024, to March 31, 2024) of FY 2023-24.”
Here’s a breakdown of the interest rates on some popular small savings schemes:
| Scheme | Interest Rate | Investment Term |
|---|---|---|
| Sukanya Samriddhi Scheme | 8.2% | N/A |
| Three-Year Term Deposit | 7.1% | 3 years |
| Public Provident Fund (PPF) | 7.1% | N/A |
| Savings Deposits | 4% | N/A |
| Kisan Vikas Patra | 7.5% | 115 months |
| National Savings Certificate (NSC) | 7.7% | N/A |
It’s important to note that these rates will be applicable for the period between April 1, 2024, and June 30, 2024.
The Reserve Bank of India (RBI) has been steadily increasing the benchmark lending rate since May 2022, reaching 6.5%. This has led banks to raise interest rates on deposits as well. However, the RBI has maintained the status quo on the policy rate in its last five consecutive Monetary Policy Committee meetings since February this year.
It’s a relief for investors that the government has decided to keep the interest rates stable on small savings schemes, offering consistency and predictability in returns. These schemes, primarily operated by post offices, play a crucial role in the financial planning of many individuals and families.
This information has been sourced from a syndicated news agency feed and has not been edited by Financemonk staff.