Interest rates of small savings scheme remains same for Q3

New Delhi, Oct 1 (IANS) The Central government has announced that the interest rate on the various small saving schemes like PPF and SSY will remain unchanged for the third quarter (October 1, 2024, to December 31, 2024) of the financial year (FY) 2024-25.

After this decision, the interest rates available on small savings schemes during the period from July to September 2024 will continue.

"The rates of interest on various small savings schemes for the third quarter of FY 2024-25, starting from October 1, 2024, and ending on December 31, 2024, shall remain unchanged from those notified for the second quarter (July 1, 2024, to September 30, 2024) of FY 2024-25," a Finance Ministry notification said.

The Finance Ministry reviews small saving schemes' interest rates every quarter. The small savings schemes comprise the Public Provident Fund (PPF), the Senior Citizen Savings Scheme (SCSS), the Sukanya Samriddhi Yojana (SSY), the National Savings Certificate (NSC), the Post Office Time Deposit (POTD), the Mahila Samman Savings Certificate (MSSC), and the Post Office Monthly Income Scheme (POMIS).

Among small savings schemes, the highest interest is 8.2 per cent on the Sukanya Samriddhi Yojana and the Senior Savings Scheme. There is 7.7 per cent interest on the National Savings Certificate, 7.5 per cent interest on the Kisan Vikas Patra, 7.4 per cent interest on the Monthly Income Scheme, and 7.1 per cent interest on the Public Provident Fund.

The government is offering a 4 per cent interest rate on post office savings accounts, 6.9 per cent on one-year term deposit, 7 per cent on two-year term deposits, 7.1 per cent on three-year term deposits, 7.5 per cent on five-year term deposits, and 6.7 per cent on the five-year recurring deposit (RD).

According to reports, alternative investment options such as stock market and government savings schemes (PPF and Small Savings) posted strong growth in FY 21-23.