Small savings schemes in India are designed to provide individuals with safe and attractive options for saving money. They typically offer betterinterest rates compared to regular savings accounts and often come with tax benefits.
Each of these schemes has specific features, eligibility criteria, and tax implications. Depending on your financial goals, risk tolerance, and tax planning needs, you can choose the one that suits you best.
Small Savings Scheme Interest Rate 2024
The government, in June, had decided to maintain the current interest rates on all small savings schemes for the July to September period. For the October to December 2024 quarter, the decision is likely to come this month.
“The rates of interest on various small savings schemes for the second quarter of FY 2024-25, starting from July 1, 2024, and ending on September 30, 2024, shall remain unchanged from those notified for the first quarter (March 1, 2024, to June 30, 2024) of FY 2024-25,” a finance ministry notification had said.
The most recent revision of interest rates occurred in December 2023 for the January-March quarter of FY24.
During this update, the Centre increased the interest rates for certain small savings schemes, including the Sukanya Samriddhi Scheme and the 3-year Time Deposit, by up to 20 basis points for Q4 FY24.
According to the June notification, deposits under the Sukanya Samriddhi scheme earn an interest rate of 8.2%, while the three-year term deposit rate remains at 7.1%.
The interest rates for popular schemes like the Public Provident Fund (PPF) and post office savings deposits have also been maintained at 7.1% and 4%, respectively.
The government sets the interest rates for small savings schemes, which are primarily managed by post offices and banks, every quarter.
In the previous announcement, the government also kept the interest rates on small savings steady for the April-June quarter.
The PPF rate has remained at 7.1% since it was reduced from 7.9% in the April-June 2020 period. Before that, it was lowered in the July-September 2019 quarter. The rate was last increased in the October-December 2018 quarter, rising from 7.6% to 8%.
