Interest Rates on Small Saving Schemes for 3rd Quarter of FY 24-25
The Government of India has issued the third quarter’s notification of Small Savings Schemes interest rates for the financial year 2024-25. As per the Office Memorandum dated 30th September 2024, the Ministry of Finance had decided to keep the interest rates at the same level as prevailed during the previous quarter. This consequently means that from 1st October 2024 to 31st December 2024, the interest rate will be just like those charged in the second quarter that comprises 1st July 2024 to 30th September 2024.
The unchanged rates include several of the most popular savings schemes, such as Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY) and others post office savings schemes. These Small Savings Schemes are a requirement for investment for many, especially conservative investors seeking safe returns.
Small Savings Scheme Interest Rates (October to December 2024):
1. Public Provident Fund (PPF): 7.1% per annum (yearly compounded)
2. National Savings Certificate (NSC): 7.7% per annum
3. Sukanya Samriddhi Yojana (SSY): 8% per annum.Compounded annually
4. Senior Citizen Savings Scheme (SCSS): 8.2% per annum.Compounded quarterly
5. Kisan Vikas Patra (KVP): 7.5%.It matures in 115 months
6. 5-Year Post Office Time Deposit: 7.5% per annum.
The rate may not have undergone any change for the following reasons. These are maintaining stability as well as continuity in the financial markets, keeping the level of inflation under control, and providing stable returns to the small investor. Though the Reserve Bank of India repo rates change periodically, the interest rates offered by the government for small savings would have considered all such factors along with the overall economic conditions of the globe.
Decisions are thus taken in such a way that savings or investments yield predictable returns from these savings schemes so that people can plan for their needs in the long run, whether for education, retirement, or other purposes.
For the latest updates, people are advised to keep checking on the notifications of the Ministry of Finance or consult their local post offices or banks offering such schemes.
