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Interest rate for small savings schemes to remain unchanged for April-June 2024 quarter: Centre
The interest rate for several small savings schemes will remain unchanged for April-June 2024 quarter of the upcoming financial year.
The Finance Ministry on Friday announced the interest rates for small savings schemes for the upcoming quarter of April-June 2024, stating that the Centre has decided to keep the rates applicable to these schemes unchanged.
In a memorandum issued on March 8, the Ministry of Finance said, “The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1st April, 2024 and ending on 30th June, 2024 shall remain unchanged from those notified for the fourth quarter (1st January, 2024 to 31st March, 2024) of FY 2023-24.”
Since the rates for all the small savings schemes remain unchanged for the next quarter, the contributions to the Public Provident Fund (PPF) will continue to earn 7.1 percent interest. The government notification said, “This has the approval of the competent authority.”
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The small savings schemes' interest rates are assessed and revised by the government on a quarterly basis, and the methodology to determine the revision in rates is proposed by the Shaymala Gopinath Committee. The committee has suggested that the interest rates for these schemes should range from 25 to 100 basis points above the yields of the government bonds.
The last time that the rates were hiked was for certain small savings schemes and post office schemes was on December 31, 2023, when the rates were increased. However, the interest rates for PPF were kept unchanged for the previous quarter, at 7.1 percent.
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Interest rates for various small savings schemes
| Small savings schemes | Interest rates for April-June 2024 |
|---|---|
| Savings deposits | 4 |
| 1 year time deposits | 6.9 |
| 2 year time deposits | 7 |
| 3 year time deposits | 7.1 |
| 5 year time deposits | 7.5 |
| 5 year recurring deposits | 6.7 |
| Monthly income account scheme | 7.4 |
| National savings certificate | 7.7 |
| Senior citizen savings scheme | 8.2 |
| Public provident fund scheme | 7.1 |
| Kisan Vikas Patra | 7.5 |
| Sukanya Samriddhi Account | 8.2 |
