Interest rates on small savings schemes remain unchanged for Q1 FY25

NEW DELHI: The government on Friday left the interest rates unchanged on various small savings schemes for the first quarter of the next fiscal, beginning April 1, 2024.

A notification in this regard has been issued by the finance ministry.

“The rates of interest on various small savings schemes for the first quarter of FY 2024-25, starting from April 1, 2024, and ending on June 30, 2024, shall remain unchanged from those notified for the fourth quarter (January 1, 2024, to March 31, 2024) of FY 2023-24,’’ the notification said.

The deposit under the Sukanya Samriddhi scheme will attract an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains at 7.1 per cent. The interest rates for popular PPF and savings deposits too have been retained at 7.1 per cent and 4 per cent, respectively.

The interest rate on the Kisan Vikas Patra will be 7.5 per cent, and the investments will mature in 115 months. The interest rate on the National Savings Certificate (NSC) will remain at 7.7 per cent for the April 1-June 30, 2024, period. Like the current quarter, the interest rate for the Monthly Income Scheme will earn 7.4 per cent for investors.

The government notifies the interest rates on small savings schemes, majorly operated by post offices, every quarter.

The Reserve Bank, since May 2022, has raised the benchmark lending rate by 2.5 per cent to 6.5 per cent, prompting banks to raise interest rates on deposits as well.

However, the RBI has maintained the status quo on policy rate in the last five consecutive Monetary Policy Committee meetings since February this year.