Interest rate of small savings schemes kept unchanged in Q1 of FY25: Govt

Small Saving Schemes: The government has kept the interest rates unchanged for various small savings schemes during the first quarter of the upcoming fiscal year, spanning from April 1, 2024, to June 30, 2024. As outlined in a notification by the finance ministry, these rates will remain consistent with those set for the fourth quarter of the current fiscal year, lasting from January 1, 2024, to March 31, 2024.

Key schemes such as the Sukanya Samriddhi scheme will retain an 8.2 per cent interest rate, while the three-year term deposit will continue to yield 7.1 per cent Other popular options, including the Public Provident Fund (PPF) and savings deposits, will also maintain their current interest rates at 7.1 per cent and 4 per cent, respectively.

The Kisan Vikas Patra will continue to offer a 7.5 per cent interest rate, with a maturity period of 115 months. The National Savings Certificate (NSC) will retain its 7.7 per cent interest rate for the period from April 1 to June 30, 2024.

Likewise, the Monthly Income Scheme will persist with an interest rate of 7.4 per cent for investors during this quarter. The government routinely updates the interest rates on small savings schemes, primarily managed by post offices, every quarter.

Despite the Reserve Bank of India's (RBI) increase in the benchmark lending rate by 2.5 per cent to 6.5 per cent since May 2022, leading to banks raising deposit interest rates, the interest rates on small savings schemes have been kept unchanged. The RBI has maintained a policy rate status quo in its last five consecutive Monetary Policy Committee meetings since February of the current year.