Small savings rates left unchanged

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The government has left the interest rates on small saving schemes unchanged for the April-June quarter. The finance ministry issued a notification in this regard.

“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 interest rates for popular PPF and savings deposits too have been retained at 7.1 per cent and 4 per cent, respectively.

The deposit under the Sukanya Samriddhi scheme will fetch an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains at 7.1 per cent.

Like the current quarter, the interest rate for the Monthly Income Scheme will earn 7.4 per cent for investors. The government notifies the interest rates on small savings schemes, majorly operated by post offices, every quarter.

The interest rate on the Kisan Vikas Patra will be 7.5 per cent for a 115-month deposit. The interest rate on the National Savings Certificate (NSC) will remain at 7.7 per cent for the April 1-June 30, 2024, period. The Reserve Bank of India, since May 2022, has raised the benchmark lending rate by 2.5 per cent to 6.5 per cent, 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.