Govt Keeps Small Savings Schemes Interest Rate Unchanged For Oct-Dec 2024
The finance ministry on September 30 reviewed the interest rates on small savings schemes, including public provident fund (PPF), National Savings Certificates (NSC) and Kisan Vikas Patra (KVP). However, no changes were announced for the quarter of October-December 2024.
“The rates of interest on various small savings schemes for the third quarter of FY 2024-25, starting from October 1, 2024, and ending on December 31, 2024, shall remain unchanged from those notified for the second quarter (July 1, 2024, to September 30, 2024) of FY 2024-25,” said a finance ministry notification.
As per the notification, deposits under the Sukanya Samriddhi scheme will attract an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains at 7.1 per cent.
The interest rates for popular Public Provident Fund (PPF) and post office savings deposits schemes too have been retained at 7.1 per cent and 4 per cent, respectively.
The interest rate on the Kisan Vikas Patra will be 7.5 per cent, and the investments will mature in 115 months.
The interest rate on the National Savings Certificate (NSC) will remain at 7.7 per cent for the July-September 2024 period.
Like the current quarter, the Monthly Income Scheme will earn 7.4 per cent for investors.
The interest rates have been left unchanged for the last three quarters. The government had last made changes in some schemes for the fourth quarter of the last fiscal.
Small savings schemes in India are designed to provide individuals with safe and attractive options for saving money. They typically offer better interest rates compared to regular savings accounts and often come with tax benefits.
Each of these schemes has specific features, eligibility criteria, and tax implications. Depending on your financial goals, risk tolerance, and tax planning needs, you can choose the one that suits you best.
Small Savings Interest Rates October 2024
Latest Interest Rates On Small Savings Schemes:
The interest rates for the current quarter October-December 2024 are as follows:
Savings Deposit: 4 per cent
1-Year Post Office Time Deposits: 6.9 per cent
2-Year Post Office Time Deposits: 7.0 per cent
3-Year Post Office Time Deposits: 7.1 per cent
5-Year Post Office Time Deposits: 7.5 per cent
5-Year Recurring Deposits: 6.7 per cent
National Saving Certificates (NSC): 7.7 per cent
Kisan Vikas Patra: 7.5 per cent (will mature in 115 months)
Public Provident Fund: 7.1 per cent
Sukanya Samriddhi Account: 8.2 per cent
Senior Citizens Savings Scheme: 8.2 per cent
Monthly Income Account: 7.4 per cent.
The government, in June, had decided to maintain the current interest rates on all small savings schemes for the July to September period. For the October to December 2024 quarter, the decision is likely to come this month.
During this update, the Centre increased the interest rates for certain small savings schemes, including the Sukanya Samriddhi Scheme and the 3-year Time Deposit, by up to 20 basis points for Q4 FY24.
According to the June notification, deposits under the Sukanya Samriddhi scheme earn an interest rate of 8.2%, while the three-year term deposit rate remains at 7.1%.
The interest rates for popular schemes like the Public Provident Fund (PPF) and post office savings deposits have also been maintained at 7.1% and 4%, respectively.
The government sets the interest rates for small savings schemes, which are primarily managed by post offices and banks, every quarter.
In the previous announcement, the government also kept the interest rates on small savings steady for the April-June quarter.
The PPF rate has remained at 7.1% since it was reduced from 7.9% in the April-June 2020 period. Before that, it was lowered in the July-September 2019 quarter. The rate was last increased in the October-December 2018 quarter, rising from 7.6% to 8%.
