Small savings rates unchanged for Oct-Dec quarter: PPF gives 7.1 % interest

Rates unchanged for Public Provident Fund, Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana

The Finance Ministry on Monday kept interest rates of small saving schemes unchanged for the October-December 2024 quarter, with Sukanya Samriddhi and Senior Citizen Savings Scheme offering 8.2 per cent interest rate.

 

The interest rates were last revised on December 31 last year: For small savings schemes including the Public Provident Fund (PPF), National Savings Certificates (NSC), and Kisan Vikas Patra (KVP).

 

“The rates of interest on various Small Savings Schemes for the third quarter of FY 2024-25 starting from 1st October , 2024 and ending on 31st December, 2024 shall remain unchanged from those notified for the second quarter of FY 2024-25,” said the Finance Ministry in a press release on Monday.

 

Interest rates

 

The Sukanya Samriddhi scheme will offer an interest rate of 8.2 per cent, while the three-year term deposit rate stays at 7.1 per cent.

 

The interest rates for popular schemes such as the Public Provident Fund (PPF) and post office savings deposits remain unchanged at 7.1 per cent and 4 per cent, respectively.

 

Senior Citizen Savings Scheme (SCSS) interest rate remains at 8.2 per cent.

 

The Kisan Vikas Patra will carry an interest rate of 7.5 per cent, with investments maturing in 115 months.

 

The National Savings Certificate (NSC) will continue to offer a 7.7 per cent interest rate.

 

The five-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.

 

Similarly, the Monthly Income Scheme will maintain its current 7.4 per cent return for investors.

 

Mahila Samman Savings Certificate interest rate remains at 7.5 per cent per annum.

 

All of these small savings schemes are provided by the post office and backed by the central government, offering a sovereign guarantee.

 

The formula to arrive at the interest rates for a small savings scheme was given by the Shyamala Gopinath Committee. It suggested that the yields on government bonds serve as the reference points for setting the interest rates on different small savings instruments, with regular adjustments to be made accordingly.