Small Savings Scheme
Interest Rates April-June 2024: The government has announced the
interest rates
for small savings schemes for the April-June 2024 quarter. The government has announced that the interest rates on small savings schemes for the April to June 2024 quarter will remain unchanged. ““The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1st t April, 2024 and ending on 30th June, 2024 shall remain unchanged from those notified for the fourth quarter (1st January, 2024 to 31.t March, 2024) ofFY 2023-24,” the Department of Economic Affairs under the Ministry of Finance said in its office memorandum.”
The determination of interest rates for small savings schemes is carried out quarterly by the government.
The Shyamala Gopinath Committee proposed a methodology for setting these rates, suggesting that the interest rates for various schemes should be 25 to 100 basis points higher than the yields of government bonds with corresponding maturities.
For the period from April 2024 to June 2024, the interest rates for
Sukanya Samriddhi
Account and 3-year post office fixed deposits will be 8.2% and 7.1%, respectively. The interest rates for the Public Provident Fund (
PPF
) and other small savings schemes like
NSC
and
Kisan Vikas Patra
have also remained unchanged.
| Post office schemes interest rates for April-June 2024 | ||
| Instrument | Rates of interest April-June 2024 (%) | Rates of interest Jan-March 2024 (%) |
| Savings Deposit | 4 | 4 |
| 1 Year Time Deposit | 6.9 | 6.9 |
| 2 Year Time Deposit | 7 | 7 |
| 3 Year Time Deposit | 7.1 | 7.1 |
| 5 Year Time Deposit | 7.5 | 7.5 |
| 5 Year Recurring Deposit | 6.7 | 6.7 |
| Senior Citizen Savings Scheme | 8.2 | 8.2 |
| Monthly Income Account Scheme | 7.4 | 7.4 |
| National Savings Certificate | 7.7 | 7.7 |
| Public Provident Fund Scheme | 7.1 | 7.1 |
| Kisan Vikas Patna | 7.5 (Matures in 115 months) | 7.5 (Matures in 115 months) |
| Sukanya Samriddhi Account | 8.2 | 8.2 |
The interest rates of small savings schemes are tied to the yields of 10-year Government Securities in the secondary market. Every quarter, the central government assesses these rates based on the G-Secs yields of the preceding three months. This mechanism ensures that the interest rates of small savings schemes remain market-linked, aligning with the recommendations of the Shyamala Gopinath Committee in 2011.
While banks have begun raising interest rates on fixed deposits (FD) following key rate hikes by the Reserve Bank of India (RBI), numerous small savings schemes persist in offering higher interest rates.