Interest Rates of PPF, NSC, SCSC, Sukanya Samriddhi and Small Savings Schemes announced for July-Sept 2024; Check Details
The government declared that there would be no alteration in the interest rates for the small saving schemes for July-September, 2024. This decision implies that the current rates shall prevail throughout the current quarter hence no change in the current rates in the accounts. Public Provident Fund (PP), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Mahila Samman Savings Certificate, Post Office Time Deposits (POTD) and Post Office Monthly Income Scheme (POMIS) are few of the schemes included in Post office savings schemes.
In a press release, the Ministry of Finance stated, “The interest rates on various Small Savings Schemes for the FY 2024-25’s second quarter starting shall remain unaltered that notified in the first quarter 2024-25”.
This entails that the Public Provident Fund (PPF) will be in a position to earn an interest of 7.1% for the period of July to September of the year 2024.
Below are the post office schemes interest rates for July, August, and September of the year 2024:
How the Interest Rates on Small Savings Schemes are fixed?
Currently, the interest rates of small savings schemes are reviewed every three months by the government. The methodology of determination of these rates was suggested by the Shyamala Gopinath Committee.
According to the committee’s suggestions, the interest rates are expected to be between 25 and 100 basis points over the government bonds’s yields of similar maturities. This concept aims to ensure and guarantee that the interest rates offered in the small savings schemes are sufficiently high to attract the required attention.
When was the last time Post Office Schemes’ interest rate increased?
It was decided by the government to increase the interest rates for post office savings, and small saving schemes for the quarter ending December 31, 2023. Notably, while the interest rates on all the schemes have been changed, the recurring deposit rate is maintained according to the previous rate. However, the interest to be paid on the PPF has remained unchanged at a rate of 7.0% to its level in the April-June 2020 quarter.
After the RBI increased the repo rate in May 2022, the banks in response have also proceeded to increase the rate of interest on the fixed deposits (FDs), which is a positive sign for the holders of the FDs who have gone through a great deal of historically low interest rates for a long time. But as it has been seen, in the last five policy meetings itself, the RBI has been quitted from changing the key rates any further.
