Informist, Friday, Jun 28, 2024
--Govt keeps rates on all small savings schemes unchanged for Jul-Sep
NEW DELHI – The government today kept interest rates on all small-savings schemes unchanged for the quarter starting July, the finance ministry's economic affairs department said in a circular. The interest rate on the public provident fund scheme was kept unchanged for the 17th consecutive quarter. The government had increased rates on small savings instruments from Oct-Dec 2022 to Jan-Mar.
The government had kept the interest rates on small savings schemes unchanged for Apr-Jun as well after raising rates on schemes by 10-20 bps in Jan-Mar. For the quarter ended December, it had raised rates on only one scheme, the five-year recurring deposit.
The interest rate on Mahila Samman Savings Certificate, which was announced in the Budget for 2023-24 (Apr-Mar), continues to be 7.5%. In her Budget speech, Finance Minister Nirmala Sitharaman had introduced the Mahila Samman Savings Certificate, a small savings scheme available for two years, up to March 2025. The scheme involves deposits of up to 200,000 rupees for a period of two years at a fixed interest rate of 7.5% with an option of partial withdrawal.
The government had last announced sharp cuts in interest rates on small savings schemes in March 2021, but they were rolled back within a day. Since 2016, the government has revised interest rates on small savings schemes every quarter to align them with market rates on relevant government securities. However, these revisions, or the lack thereof, have had little link to the movement in bond yields.
Interest rates on various small savings schemes for Jul-Sep are as follows:
| Instrument | Rate of interest |
| Savings deposit | 4.0 |
| One-year time deposit | 6.9 |
| Two-year time deposit | 7.0 |
| Three-year time deposit | 7.1 |
| Five-year time deposit | 7.5 |
| Five-year recurring deposit | 6.7 |
| Senior citizen savings scheme | 8.2 |
| Monthly income account scheme | 7.4 |
| National savings certificate | 7.7 |
| Public provident fund scheme | 7.1 |
| Kisan vikas patra | 7.5* |
| Sukanya samriddhi account scheme | 8.2 |
*will mature in 115 months
End
Reported by Krity Ambey
Edited by Aditya Sakorkar
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