Government Keeps Small Savings Schemes Interest Rate Unchanged for October-December 2024
Government Keeps Small Savings Schemes Interest Rate Unchanged for October-December 2024
On september 30, the finance ministry announced that the interest rates for various small savings schemes will remain unchanged for the quarter of october to december 2024. This decision follows a review of interest rates for schemes such as the Public Provident Fund (PPF), National Savings Certificates (NSC), and Kisan Vikas Patra (KVP).
Key Interest Rates for October-December 2024:
Savings Deposit: 4.0%
1-Year Post office Time Deposits: 6.9%
2-Year Post office Time Deposits: 7.0%
3-Year Post office Time Deposits: 7.1%
5-Year Post office Time Deposits: 7.5%
5-Year Recurring Deposits: 6.7%
National Savings Certificate (NSC): 7.7%
Kisan Vikas Patra: 7.5% (maturing in 115 months)
Public Provident Fund (PPF): 7.1%
Sukanya Samriddhi Account: 8.2%
Senior Citizens Savings Scheme: 8.2%
Monthly Income Account: 7.4%
The rates have been stable for the last three quarters, with the last adjustments occurring in the previous fiscal year. This consistency allows individuals to plan their savings with a clearer understanding of expected returns.
Background
Small savings schemes in india provide safer alternatives for individuals looking to grow their savings, often offering better interest rates than standard savings accounts, along with tax benefits. Each scheme has specific eligibility criteria and tax implications, allowing investors to choose based on their financial goals and risk tolerance.
The government revises these interest rates quarterly, and any changes are usually announced at the end of the preceding month. The current rates reflect a focus on maintaining stable returns for savers amid varying economic conditions.