Small Savings Scheme Interest Rates Unchanged for Q3 FY25

The government has announced that interest rates on various small savings schemes, including the Public Provident Fund (PPF) and National Savings Certificate (NSC), will remain unchanged for the third consecutive quarter, starting from October 1, 2024, to December 31, 2024. According to a finance ministry notification, the rates for this quarter will match those from the previous quarter (July 1, 2024, to September 30, 2024).

Key rates include 8.2% for the Sukanya Samriddhi scheme, 7.5% for Kisan Vikas Patra (maturing in 115 months), 7.1% for PPF, and 4% for post office savings deposits. The NSC retains a rate of 7.7%, while the Monthly Income Scheme will continue to offer 7.4%. This decision follows a trend of stability, as rates have remained unchanged for the last three quarters, with the last revisions occurring in the fourth quarter of the previous fiscal year.

Key Rates Overview

  • Sukanya Samriddhi Scheme: 8.2%
  • Kisan Vikas Patra: 7.5% (115 months maturity)
  • Public Provident Fund (PPF): 7.1%
  • National Savings Certificate (NSC): 7.7%
  • Post Office Savings Deposit: 4%
  • Monthly Income Scheme: 7.4%

Historical Context

The government notifies interest rates on these small savings schemes, which are primarily operated by post offices and banks, every quarter. The last significant changes were made in the fourth quarter of the previous fiscal year, indicating a trend of stability in the current economic environment.

Interest rates for various small savings schemes for the specified periods

Scheme Rate of Interest (01.04.24 to 30.06.24) Rate of Interest (01.07.24 to 30.09.24) Compounding Frequency
Senior Citizens Savings Scheme (SCSS) 8.20% 8.20% Paid Quarterly
Public Provident Fund (PPF) 7.10% 7.10% Annually
Sukanya Samriddhi Account Scheme (SSA) 8.20% 8.20% Annually
Kisan Vikas Patra (KVP) 7.50% (matures in 115 months) 7.50% (matures in 115 months) Annually
National Savings Certificate (NSC) 7.70% 7.70% Annually

The rates for SCSS, KVP, and NSC are applicable only for newly opened accounts during the period from 01.07.2024 to 30.09.2024.

Here’s the table with key points relevant for exams:

Key Points Details
Why in News Interest rates on small savings schemes, including PPF, NSC, and Sukanya Samriddhi, remain unchanged for Q3 FY25 (Oct-Dec 2024).
Interest Rates Unchanged No changes to small savings scheme rates for Q3 FY25. Rates were last revised in Q4 FY24.
Key Rates Overview – Sukanya Samriddhi: 8.2%
– Kisan Vikas Patra: 7.5% (115 months)
– PPF: 7.1%
– NSC: 7.7%
– Post Office Savings Deposit: 4%
– Monthly Income Scheme: 7.4%
Interest Rates for Q3 FY25 (Oct-Dec) – SCSS: 8.2%
– PPF: 7.1%
– Sukanya Samriddhi: 8.2%
– KVP: 7.5% (115 months)
– NSC: 7.7%
Compounding Frequency – SCSS: Quarterly
– PPF, SSA, KVP, NSC: Annually
Recent Interest Rate Stability Rates have been stable for the last three quarters, with the last major change in Q4 FY24.

Piyush Shukla

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