According to a notification from the Ministry of Finance, the interest rates on small savings schemes for the second quarter of the financial year 2024-25, effective from July 1, 2024, to September 30, 2024, will remain unaltered.
Small Saving Scheme: The central government announced a major decision on Friday regarding the interest rates of all small savings schemes for the July-September quarter of the financial year 2025. No changes were made to the interest rates of these government schemes in the previous quarter, and similarly, for the July-September quarter, there have been no alterations in the interest rates of PPF, SCSS, and Sukanya Samriddhi Scheme.
The central government periodically decides on the interest rates of small savings schemes every three months, and this time it has decided to maintain the existing interest rates under these schemes. In a notification, the Ministry of Finance mentioned that the interest rates on small savings schemes for the second quarter of the financial year 2024-25, starting from July 1, 2024, and concluding on September 30, 2024, will remain unchanged.
The interest rate of these schemes is decided quarterly
Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Mahila Samman Saving Certificate, Senior Citizen Saving Scheme (SCSS) and National Savings Certificate (NSC) are the famous schemes available for investors. The interest rate of these schemes is decided every three months.
When was the last change?
The last revision in interest rates was done in December 2023 for the January-March quarter of FY24. In the last change, the Center had increased the interest rates of some small savings schemes like Sukanya Samriddhi Yojana, 3-year time deposit by up to 20bps for Q4 FY24. PPF rates remained unchanged for more than 3 years. It was last changed in April-June 2020, when it was reduced from 7.9 percent to 7.1 percent.
Interest on Post Office Savings Account
The interest rate for post office savings account remains at 4 percent per annum. The interest rate for Senior Citizen Savings Scheme is 8.2 percent, while the interest rate for Sukanya Samriddhi Account will be 8.2 percent for the next quarter.
6.9% interest is being given for 1 year time deposit, 7.0% on two year TD, 7.1% on three year TD, 7.5 percent on five year TD. Apart from this, 6.7% interest is being given on RD, 7.4% under Monthly Income Scheme, 7.7% interest under NSC and 7.5% interest under Kisan Vikas Patra.
