Interest rates of small savings schemes remain unchanged for April-June 2024
The government has not made any changes in the interest rates of all small savings schemes for the April-June 2024 quarter (Q1FY25). The Finance Ministry has given this information by issuing a notification on Friday (8 March).
The Finance Ministry said in the notification that the interest rates of small savings schemes for the first quarter of the financial year 2024-25, starting from 1 April 2024 and ending on 30 June 2024, will be the same as for the fourth quarter of FY 2023-24 (1 January 2024 to 31 March 2024) will remain unchanged from the notified rates.
7.1% interest rate on Public Provident Fund
7.1% interest rate will continue to be available on Public Provident Fund (PPF) for the quarter April-June 2024-25. The government also keeps an eye on the country’s liquidity situation and inflation before deciding on the interest rates of small savings schemes. However, interest rates on small savings schemes including PPF, NSC and KVP are reviewed every quarter. Interest rates on small savings schemes range between 4% to 8.2%.
On December 29, the government had announced the interest rates of small savings schemes for the January-March 2024 quarter. Then Sukanya Samriddhi Yojana was increased by 0.20% and 3 year time deposit rates were increased by 0.10%. Whereas the rates of other schemes were not changed.
Earlier, the government had increased the rates on RD by 0.20% for October-December. Earlier the interest rate of Sukanya Scheme was 8% and the interest rate of three year time deposit was 7%. This was the sixth consecutive quarter when the rates of these schemes had increased. The Finance Ministry had not changed the interest rates of small savings schemes for nine consecutive quarters. After this, it started increasing from October-December 2022.
Interest rates are reviewed every quarter
The interest rates of Small Savings Scheme are reviewed every quarter. The formula for determining their interest rates was given by the Shyamala Gopinath Committee. The committee had suggested that the interest rates of these schemes should be 0.25-1.00% higher than the yield of government bonds of similar maturity.
