Interest Rates on Small Savings Schemes Remain Steady for Q2 FY 2024-25

The Indian Ministry of Finance has announced that interest rates for small savings schemes will remain unchanged for the January-March quarter of FY 2024-25. Rates for popular schemes such as the PPF and SCSS will continue at 7.1% and 8.2%, respectively, in keeping with previous guidelines.

The central government's decision to maintain current interest rates on various small savings schemes for the January-March quarter of the 2024-25 fiscal year has been confirmed by an official notification from the Ministry of Finance.

The widely favored Public Provident Fund (PPF) will remain at a 7.1% interest rate, continuing to provide substantial tax benefits and significant long-term savings potential, as noted in the finance ministry's announcement.

Similarly, the Senior Citizen Savings Scheme (SCSS) retains its 8.2% interest rate, ensuring financial security for senior citizens through higher returns than typical savings plans. The government also underscores the 8.2% interest of the Sukanya Samriddhi Yojana, essential for supporting girl children's education and marriage costs under the 'Beti Bachao Beti Padhao' initiative.

The announcement highlights that the National Savings Certificate (NSC) will remain at a 7.7% interest rate, a safe medium-yield investment option, while the Post Office Monthly Income Scheme (PO-MIS) provides a steady 7.4% interest rate, offering regular monthly income for investors.

Offering a stable interest rate of 7.5%, the Kisan Vikas Patra (KVP) aims to double investment within a predefined period, while the 5-Year Recurring Deposit (RD) scheme remains at 6.7%, supporting investors with monthly deposits.

According to the Shyamala Gopinath Committee guidelines, these schemes are structured for guaranteed returns with periodic compounding, recommending Indian government bonds' yields as references for setting these interest rates, which are revised annually on April 1.

(With inputs from agencies.)