Small Savings Scheme Interest Rates Unchanged for Q3 FY 2024-25

On September 30, 2024, the Finance Ministry announced that interest rates for small savings schemes will stay the same for the October-December 2024 quarter. This includes popular schemes like the Sukanya Samriddhi Yojana and the Senior Citizen Savings Scheme, both offering an interest rate of 8.2%.

Small Savings Schemes are government-managed savings options designed to encourage people of all ages to save regularly. They are popular because they usually offer better returns than bank fixed deposits, along with a government guarantee and tax benefits.

According to the ministry’s statement, the interest rates for the third quarter of the 2024-25 financial year, from October 1 to December 31, will remain unchanged from the previous quarter.

Here are the key interest rates:

• Sukanya Samriddhi Yojana: 8.2%
• Public Provident Fund (PPF): 7.1%
• Post office savings deposits: 4%
• Senior Citizen Savings Scheme (SCSS): 8.2%
• Kisan Vikas Patra: 7.5%, with maturity in 115 months
• National Savings Certificate (NSC): 7.7%

These rates were last updated on December 31, 2023.

The 5-year Recurring Deposit (RD) scheme, which lets investors deposit a set amount each month, will continue to offer an interest rate of 6.7%. Similarly, the Monthly Income Scheme will maintain its interest rate of 7.4%.

The Mahila Samman Savings Certificate will keep its annual interest rate at 7.5%. All these small savings schemes are provided by the post office and are backed by the central government, ensuring a sovereign guarantee.

The interest rates for these schemes are based on recommendations from the Shyamala Gopinath Committee, which suggested using government bond yields as a reference to set rates for small savings schemes with regular adjustments. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.