Indian Govt Keeps Interest Rates on Small Savings Schemes Unchanged for Q2 FY 2024-25

New Delhi: The central government on Friday left the interest rates on various small savings schemes unchanged for the July-September quarter beginning July 1, 2024, making it the second time in seven quarters that rates on these instruments have not been increased.

“The rates of interest on various Small Savings Schemes for the second quarter of FY 2024-25 starting from 1st July, 2024 and ending on 30th September, 2024 shall remain unchanged from those notified for the first quarter (1st April, 2024 to 30th June, 2024) of FY 2024-25. This has the approval of the competent authority,” a government notification said.

The finance ministry started raising small savings interest rates in October-December 2022 after leaving them unchanged for nine consecutive quarters. The government notifies the interest rates on small savings schemes, majorly operated by post offices and banks, every quarter.

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. “Similarly, the interest rates for popular 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 notification said.

It further said that 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,” it added.