The government on Friday, March 8, has kept the current interest rates unchanged on various small savings scheme for the initial quarter of the upcoming fiscal year, beginning April 1, 2024. This decision was confirmed through a notification released by the finance ministry on Friday.
"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. The deposit under the Sukanya Samriddhi scheme will attract an interest rate of 8.2%, while the rate on a three-year term deposit remains at 7.1%.
The interest rates for popular PPF and savings deposits too have been retained at 7.1% and 4%, respectively. The interest rate on the Kisan Vikas Patra will be 7.5%, 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 April 1-June 30, 2024, period. Like the current quarter, the interest rate for the Monthly Income Scheme will earn 7.4% for investors.
The government notifies the interest rates on small savings schemes, majorly operated by post offices, every quarter. The Reserve Bank, since May 2022, has raised the benchmark lending rate by 2.5% to 6.5%, prompting banks to raise interest rates on deposits as well.
However, the RBI has maintained the status quo on policy rate in the last five consecutive Monetary Policy Committee meetings since February this year.
(With PTI inputs)
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