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In a recent announcement dated 28th June 2024, the Ministry of Finance, Department of Economic Affairs, Budget Division, issued an office memorandum under F.No.1/4/2019-NS concerning the interest rates for Small Savings Schemes for the second quarter of FY 2024-25. The memorandum, approved by the competent authority, confirms that the interest rates will remain unchanged for the period from 1st July 2024 to 30th September 2024.

Detailed Analysis

Small Savings Schemes have been a crucial part of the Indian financial ecosystem, providing safe investment options with relatively stable returns. These schemes include instruments such as the Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), and Sukanya Samriddhi Yojana (SSY), among others.

Interest Rates Overview

For the first quarter of FY 2024-25 (1st April 2024 to 30th June 2024), the interest rates for various Small Savings Schemes were set by the Ministry of Finance. The recent memorandum confirms that these rates will continue for the second quarter, ensuring consistency and stability for investors. The unchanged rates of interest on various Small Savings Schemes for the First and Second quarter of FY 2024-25 are as follows: –

Instrument Rates of interest from 01.04.2024 to 30.06.2024 Rates of interest from 01.07.2024 to 30.09.2024
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

Implications for Investors

The decision to maintain the interest rates can be seen as a measure to provide stability in the financial market amid global economic uncertainties. Investors in Small Savings Schemes can continue to benefit from predictable returns without the concern of rate fluctuations. This consistency is particularly beneficial for risk-averse individuals and those relying on these schemes for long-term financial planning, such as retirees and parents saving for their children’s education.

Conclusion

The Ministry of Finance’s decision to keep the interest rates for Small Savings Schemes unchanged for the second quarter of FY 2024-25 is a significant step in maintaining financial stability and investor confidence. By providing a steady and predictable rate of return, these schemes continue to be an attractive option for Indian savers looking for secure and stable investment avenues. As economic conditions evolve, the government’s approach to Small Savings Schemes will play a crucial role in shaping the financial landscape for millions of investors across the country.

******

F.No.1/4/2019-NS
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)

North Block, New Delhi
Dated: 28.06.2024

OFFICE MEMORANDUM

Subject: Revision of Interest Rates for Small Savings Schemes – req.

The rates of interest on various Small Savings Schemes for the second quarter of FY 2024-25 starting from 1st July, 2024 and ending on 30th September, 2024 shall remain unchanged from those notified for the first quarter (1st April, 2024 to 30th June, 2024) of FY 2024-25.

Revised Small Savings Schemes Interest Rates for July to September 2024

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.

Period Interest rates of small saving schemes – Post Link
April -June, 2024 Revised Small Savings Schemes Interest Rates for April-June, 2024
January-March, 2024 Revised Small Savings Schemes Interest Rates for January-March, 2024
October 2023 to December 2023 Revised Small Savings Schemes Interest Rates for October-December 2023
July 2023 to September 2023 Revised Small Savings Schemes Interest Rates for July-September 2023
April 23 to June 23 Interest rates for Small Savings Schemes PPF NSC etc. increased
Jan 23 to Mar 23 Interest rates of small saving schemes for January 23 to March 23
Oct 22 to Dec 22 Interest rates of small saving schemes for October 22 to December 22
Jul 22 to Sep 22 Interest rates of small saving schemes for July 22 to September 22
Apr 22 to Jun 22 Interest rates of small saving schemes for April 22 to June 22
Jan 22 to Mar 22 Interest rates of small saving schemes for Jan 22 to Mar 22
Oct 21 to Dec 21 Interest Rate on Small Savings Schemes for Oct 21 to Dec 21
July 21 to Sep 21 Interest Rates for National (Small) Savings Schemes w.e.f. 01.07.2021

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