Even as the RBI has been keeping the key interest rates unchanged for quite some time after back-to-back hikes since May 2022, the government on Friday also kept the interest rates unchanged on various small savings schemes for April-June 2024.
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“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.
Here Are Latest Interest Rates On Small Savings Schemes:
The interest rates for the April-June 2024 quarter have been fixed as follows:
Savings Deposit: 4 per cent
1-Year Post Office Time Deposits: 6.9 per cent
2-Year Post Office Time Deposits: 7.0 per cent
3-Year Post Office Time Deposits: 7.1 per cent
5-Year Post Office Time Deposits: 7.5 per cent
5-Year Recurring Deposits: 6.7 per cent
National Saving Certificates (NSC): 7.7 per cent
Kisan Vikas Patra: 7.5 per cent (will mature in 115 months)
Public Provident Fund: 7.1 per cent
Sukanya Samriddhi Account: 8.2 per cent
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Senior Citizens Savings Scheme: 8.2 per cent
Monthly Income Account: 7.4 per cent.
Interest Rates On Bank FD
Currently, major banks are offering interest rates up to 7.75 per cent depending upon deposit tenure and depositor’s age, while some small savings schemes are offering up to 8.2 per cent.
HDFC Bank is offering up to 7.75 per cent interest rates on FD. ICICI Bank is offering FD rates up to 7.60 per cent annually and SBI is giving up to 7.50 per cent a year.
What Are Small Savings Schemes?
Small Savings Schemes are savings instruments managed by the government to encourage citizens to save regularly. The small savings schemes have three categories — savings deposits, social security schemes and monthly income plan.
Saving deposits include 1-3-year time deposits and 5-year recurring deposits. These also include saving certificates such as National Saving Certificates (NSC) and Kisan Vikas Patra (KVP). Social security schemes include Public Provident Fund (PPF), Sukanya Samriddhi Account and Senior Citizens Savings Scheme. The monthly income plan includes the Monthly Income Account.
The interest rates on small savings schemes, including public provident fund (PPF), national savings certificate (NSC) and Kisan Vikas Patra (KVP), are reviewed every quarter.
Interest rates on small savings schemes like PPF, NSC, etc, are now market-linked and moves in tandem with 10-year G-Sec yield.
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In the previous rate review for January-March 2024, the government had also kept interest rates on small savings schemes unchanged, except for 3-year time deposits and Sukanya Samriddhi Scheme.
