The government on Friday, March 8, left the interest rates unchanged on various small savings schemes for the first quarter of the next fiscal, beginning April 1, 2024. With this, the interest rates will remain unchanged till June 30, 2024. A notification in this regard has been issued by the finance ministry today.
“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,” the notification said.
Also Read: Small Savings Schemes: What are the latest interest rates offered? Detailed comparison
These schemes offer guaranteed returns at regular intervals compounded monthly, quarterly or annually as the case may be. These instruments cater to conservative investors and offer guaranteed but low returns and range between 6-8 per cent.
Here are all the interest rates on small savings scheme:
Sukanya Samriddhi Account Scheme: One can open this account by investing a minimum of ₹250 and maximum ₹1.50 lakh in a financial year. The rate of interest is 8.2 percent per annum with effect from Jan 1, 2024, while the rate on a three-year term deposit remains at 7.1 per cent.
PPF: One can invest a minimum of ₹500 while maximum is ₹1.5 lakh in a financial year. The rate of interest is 7.1 per cent per annum compounded yearly. The interest rates for savings deposits too have been retained at four per cent.
Kisan Vikas Patra: One can invest a minimum of ₹1,000 and in multiples of ₹100 while there is no maximum limit. Rate of interest offered is 7.5 per cent compounded annually, and the investments will mature in 115 months.
National Savings Certificate: One can open an account by investing a minimum of ₹1,000 while there is no maximum limit. The rate of interest is 7.7 per cent compounded annually but payable at maturity. Like the current quarter, the interest rate for the Monthly Income Scheme will earn 7.4 per cent for investors.
Post Office Time Deposit Account: These accounts can be opened by depositing a minimum of ₹1,000 and in multiple of ₹100. There is no maximum limit.
1-year time deposit: These deposits offer interest at the rate of 6.9 per cent.
2-year time deposit: Rate of interest is 7 per cent.
3-year time deposit: Rate of interest is 7.1 per cent.
5-year time deposit: Rate of interest which is offered is 7.5 per cent.
5-year recurring deposit scheme: It can be opened by depositing ₹100 per month or any amount in multiples of ₹10. The interest offered is 6.7 per cent per annum between Jan 1 to March 31, and is compounded quarterly.
The government notifies the interest rates on small savings schemes, majorly operated by post offices every quarter. The Reserve Bank of India (RBI), since May 2022, has raised the benchmark lending rate by 2.5 per cent to 6.5 per cent, prompting banks to raise interest rates on deposits as well. The RBI has maintained the status quo on policy rate in the last five monetary policy meetings.
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Published: 08 Mar 2024, 08:22 PM IST