Small Saving Schemes Rates: Will investors in small savings schemes, such as Sukanya Samriddhi Yojana and the Public Provident Fund (PPF), receive an increase in interest rates for the New Year 2025? The Finance Ministry is set to announce the new interest rates today, 31 December 2024, for the fourth quarter of the financial year 2024-25 (from January to March). The Department of Economic Affairs of the Ministry of Finance will announce the new interest rates for post office deposit schemes, including PPF and Sukanya Samriddhi Yojana, for the fourth quarter. There was no change in the interest rates for the third quarter (October to December 2024).
Now, investors are closely watching to see if the government will make any changes to the interest rates for small savings schemes for the fourth quarter, from 1 January 2025 to 31 March 2025. Throughout this article, we will share all the details regarding this matter.
8.2% Interest on Sukanya Samriddhi Yojana
In the third quarter, the interest rate for the Sukanya Samriddhi Yojana was 8.2%. Currently, the following interest rates apply to small savings schemes:
- Senior Citizen Savings Scheme: 8.2%
- National Savings Certificate (NSC): 7.7%
- Kisan Vikas Patra: 7.5%
- Post Office Savings Deposit: 4%
- 1-Year Term Deposit: 6.9%
- 2-Year Term Deposit: 7%
- 3-Year Term Deposit: 7.1%
- 5-Year Term Deposit: 7.5%
- 5-Year Recurring Deposit: 6.7%
PPF Investors May Get Good News
The government has increased interest rates for small savings schemes over the last two years, but there has been no change in the Public Provident Fund (PPF) rate since the first quarter of 2020-21. While Sukanya Samriddhi Yojana offers an 8.2% interest rate, PPF investors are still receiving only 7.1%. The question arises whether the government will raise PPF interest rates in the fourth quarter (Saving Schemes Update).
Will There Be a Change in the Rates of Small Savings Schemes?
Good news for small savings scheme investors: the Reserve Bank of India (RBI) did not change its policy rates in the first week of December when it announced the monetary policy. While interest rates are being cut in many countries, the RBI is expected to review its repo rate in February 2025. Given this, the chances of any change in small savings schemes’ interest rates in the fourth quarter seem very low.
Disclaimer:
The information provided in this article is for general purposes only. Please consult a financial advisor before making any investment decisions. Times Bull will not be responsible for any financial investments made, as it is entirely your responsibility.