Small savings scheme: Interest rates on PPF, SSY, SCSS remain unchanged for January-March quarter; Check ratesnews24

The government on Tuesday left the interest rates unchanged on various small savings schemes, including PPF and NSC, for the fourth straight quarter beginning January 1, 2025.

“The rates of interest on various small savings schemes for the fourth quarter of FY 2024-25, starting from January 1, 2025, and ending on March 31, 2025, shall remain unchanged from those notified for the third quarter (October 1, 2024, to December 31, 2024) of FY 2024-25,” said a finance ministry notification.

As per the notification, deposits 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 prevailing in the current quarter.

The interest rates for popular Public Provident Fund (PPF) and post office savings deposit schemes 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 January-March 2025 period.

Like the current quarter, the Monthly Income Scheme will earn 7.4 per cent for investors.

The interest rates have been left unchanged for the last four quarters now. The government had last made changes in some schemes for the fourth quarter of the last fiscal.

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

The central government has kept the interest rates unchanged on various small savings schemes for the January-March quarter of Financial year 2024-25, according to an official notification from the Ministry of Finance.

“The rates of interest on various Small Savings Scheme for the second quarter of FY 2024-25 starting from 1st January 2025 and ending on 31th march 2025 shall remain unchanged from those notified for the first quarter (1st October 2024 to 31st December 2024) of FY 2024-25,” said the Finance Ministry in the notification.

The interest rates on small savings schemes are typically reviewed every quarter by the government.

For the Public Provident Fund (PPF), one of the most popular small savings schemes, the interest rate will continue to be 7.1 per cent. This scheme is widely favored due to its tax benefits and long-term savings potential.

The Senior Citizen Savings Scheme (SCSS) will also maintain its interest rate at 8.2 per cent. This scheme is specifically designed to provide financial security to senior citizens, offering higher returns compared to other savings options.

Deposits made under the Sukanya Samriddhi Yojana, which is aimed at encouraging savings for the education and marriage expenses of girl children, will continue to earn an interest rate of 8.2 per cent. This scheme is an integral part of the government’s ‘Beti Bachao Beti Padhao’ initiative.

The National Savings Certificate (NSC), which is a fixed-income investment plan, will keep its interest rate at 7.7 per cent. This scheme is considered a secure investment with moderate returns.

The Post Office Monthly Income Scheme (PO-MIS), which provides regular monthly income to investors, will offer an interest rate of 7.4 per cent.

The Kisan Vikas Patra (KVP), a government-backed savings scheme designed to double the investment over a specific period, will continue to provide an interest rate of 7.5 per cent.

Additionally, the 5-Year Recurring Deposit (RD) scheme, which allows investors to deposit a fixed amount every month, will offer an interest rate of 6.7 per cent.

These small savings schemes offer guaranteed returns at regular intervals, compounded monthly, quarterly or annually, as the case may be.

The formula to arrive at the interest rates for a small savings scheme was given by the Shyamala Gopinath Committee. The committee had suggested yields on government bonds should be the benchmarks for the interest on various small savings instruments and should be reset every first of April.