Interest rate on small saving schemes kept unchanged for Q1 of FY25: FinMin

Interest on small saving scheme: The government has left the interest rates unchanged on various Small Savings Schemes like the Sukanya Samridhi Scheme, PPF, and Senior Citizens Savings Scheme among others for the first quarter of the next fiscal, beginning April 1, 2024. The rate of interest for the Sukanya Samridhi Scheme is 8.2 per cent while for three-year term deposits, the interest rate is 7.1 per cent. Similarly, PPF will fetch you an interest rate of 7.1 per cent.  As far as Kisan Vikas Patra is concerned, the interest rate is 7.5 per cent compounded annually. 

With this, the interest rates will remain unchanged till June 30, 2024. A notification in this regard has been issued by the finance ministry today.

"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.

These schemes offer guaranteed returns at regular intervals compounded monthly, quarterly or annually as the case may be. These instruments cater to conservative investors and offer guaranteed but low returns and range between 6-8 per cent.