GOI Retains Interest Rates for Small Savings Schemes for 3rd Quarter
The Ministry of Finance, Government of India, has issued an official memorandum regarding the interest rates for Small Savings Schemes for the third quarter of the financial year 2024-25. The memorandum, released by the Department of Economic Affairs (Budget Division) on September 30, 2024, confirms that there will be no change in the interest rates for these schemes for the period between October 1, 2024, and December 31, 2024.
It is clear from the memorandum that interest rates on different Small Saving Schemes shall be the same as those prevalent during the second quarter of the financial year 2024-25, which ran from July 1, 2024 to September 30, 2024. This further goes on to state that the rates announced earlier would continue remaining without any alteration for the forthcoming quarter.
Small Savings Schemes are always in
Popular among the population due to the assured returns and tax advantage. Such schemes include instruments like Public Provident Fund, Senior Citizen Savings Scheme, Sukanya Samriddhi Yojana, National Savings Certificate, Kisan Vikas Patra, among others. Keeping interest rates constant for the next quarter would ensure continuity and stability to these investors as they bet on such schemes for long-term safe investments.
The decision has been taken on the basis of a consensus arrived at with the approval of the competent authority, as endorsed in the memorandum. The paper is signed by Vishnukanth P. B. Director (Budget), Ministry of Finance.
This message is important to millions of investors across the country, especially the aged citizens and other small savings account holders, who often rely on such schemes for guaranteed income. Now, investors can make such decisions with greater confidence since they are assured that the interest rate for the October-December quarter will be in place without fluctuation, giving them predictability and security in financial planning.
Since the interest rates for these government-backed savings instruments are kept flat, those investments will be a comfort to many, offering an equal yield to the prior quarter but financial stability in uncertain economic times.
