Govt Keeps Small Savings Scheme Interest Rates Unchanged For Third Consecutive Quarter

Deposits under the Sukanya Samriddhi Yojana will continue to earn an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains steady at 7.1 per cent

The government announced on Monday that interest rates for various small savings schemes, including the Public Provident Fund (PPF) and National Savings Certificate (NSC), will remain unchanged for the third straight quarter, starting October 1, 2024.

In a notification issued by the finance ministry, it was stated, "The rates of interest on various small savings schemes for the third quarter of FY 2024-25, from October 1, 2024, to December 31, 2024, shall remain unchanged from those notified for the second quarter (July 1, 2024, to September 30, 2024)."

According to the notification, deposits under the Sukanya Samriddhi Yojana will continue to earn an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains steady at 7.1 per cent.

Other popular schemes have also retained their interest rates. The Public Provident Fund (PPF) will continue to offer 7.1 per cent interest, and post office savings deposits will remain at 4 per cent. The Kisan Vikas Patra will offer a 7.5 per cent interest rate, with investments maturing in 115 months.

For the National Savings Certificate (NSC), the interest rate will be maintained at 7.7 per cent, while the Monthly Income Scheme will provide a 7.4 per cent return. This marks the third consecutive quarter with no changes to the interest rates. The last revision occurred during the fourth quarter of the previous fiscal year.

The government revises interest rates on small savings schemes, largely operated by post offices and banks, every quarter.

Meanwhile, India's current account deficit slightly increased to $9.7 billion, or 1.1 per cent of GDP, in April-June 2024, compared to $8.9 billion, or 1 per cent, during the same period last year, the Reserve Bank of India reported on Monday. This key indicator of the country's external sector strength follows a surplus of $4.6 billion, or 0.5 per cent of GDP, recorded in the previous January-March quarter.