Introduction: The Government of India, through the Ministry of Finance, has released an office memorandum regarding the revision of interest rates for Small Savings Schemes for the first quarter of the fiscal year 2024-25.
Detailed Analysis: The memorandum states that the interest rates for various Small Savings Schemes will remain unchanged from the rates notified for the previous quarter of FY 2023-24. This decision indicates a stable outlook on small savings schemes for the upcoming quarter. It reflects the government’s commitment to providing consistent and reliable investment options for citizens.
This decision is significant for investors who rely on Small Savings Schemes as part of their investment portfolio. With interest rates remaining steady, investors can plan their financial strategies with confidence, knowing that their returns will not be affected by fluctuations in interest rates in the short term.
The memorandum’s approval by the competent authority underscores the government’s assurance of maintaining stability and predictability in the financial sector. It also highlights the collaborative effort among various departments and authorities involved in financial policymaking and implementation.
The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1st April, 2024 and ending on 30th June, 2024 is as follows:-
| Instrument | Rates of interest from 01.10.2023 to 31.12.2023 | Rates of interest from 01.01.2024 to 31.03.2024 |
| Savings Deposit | 4.0 | 4.0 |
| 1 Year Time Deposit | 6.9 | 6.9 |
| 2 Year Time Deposit | 7.0 | 7.0 |
| 3 Year Time Deposit | 7.0 | 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 Patra | 7.5 (will mature in 115 months) | 7.5 (will mature in 115 months) |
| Sukanya Samriddhi Account Scheme |
8.0 | 8.2 |
Conclusion: The decision to maintain interest rates for Small Savings Schemes for the first quarter of FY 2024-25 provides stability and assurance to investors. This move aligns with the government’s efforts to foster a conducive environment for savings and investments. Investors can continue to rely on Small Savings Schemes as a secure avenue for wealth accumulation, contributing to their financial well-being in the long term.
F.No.1/4/2019-NS
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)
North Block, New Delhi
Dated: 08.03.2024
OFFICE MEMORANDUM
Subject: Revision of interest rates for Small Savings Schemes – reg.
The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1st April, 2024 and ending on 30th June, 2024 shall remain unchanged from those notified for the fourth quarter (1st January, 2024 to 31st March, 2024) of FY 2023-24.
2. This has the approval of the competent authority.
(Kapil Patidar)
Deputy Secretary (Budget)
Tele – 01123092649
To,
1. The Finance Secretary & Secretary Expenditure, Department of Expenditure North Block, New Delhi.
2. The Secretary, Department of Economic Affairs North Block, New Delhi.
3. The Secretary, Department of Revenue North Block, New Delhi.
4. The Secretary, Department of Financial Services Jeevan Deep Building, New Delhi.
5. The Secretary, Department of Posts Dak Bhawan, New Delhi.
6. The Chief General Manager (DGBA) Reserve Bank of India, Central Office, Mumbai.
7. Reserve Bank of India Central Account Section, Additional Office Building, East High Court Road, Civil Lines, P.B. No.15, Nagpur – 440 001.
8. Chief Secretaries of States / UT Government
9. The Joint Director National Savings Institute, New Delhi.
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