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The main federal government has actually maintained rate of interest the same on tiny cost savings plans like message workplace down payments, public provident fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Savings Certificate (NSC) for the January-March 2025 quarter.
Small Savings Schemes are cost savings tools taken care of by the federal government to motivate residents to conserve consistently.
As the rate of interest on tiny cost savings plans like message workplace down payments, public provident fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Savings Certificate (NSC) are modified every quarter, capitalists watch out on the price modifications. This time, the main federal government has actually maintained rate of interest on such plans the same for the January-March 2025 quarter.
“The interest rates on numerous tiny cost savings plans for the 4th quarter of FY 2024-25, beginning with January 1, 2025, and upright March 31, 2025, will continue to be the same from those alerted for the 3rd quarter (October 1, 2024, to December 31, 2024) of FY 2024-25,” according to a finance ministry notification.
Current Interest Rates On Small Savings Schemes?
The interest rates for the current quarter January-March 2025 are as follows:
- Savings Deposit: 4 per cent
- 1-Year Post Office Time Deposits: 6.9 per cent
- 2-Year Post Office Time Deposits: 7.0 per cent
- 3-Year Post Office Time Deposits: 7.1 per cent
- 5-Year Post Office Time Deposits: 7.5 per cent
- 5-Year Recurring Deposits: 6.7 per cent
- National Savings Certificate (NSC): 7.7 per cent
- Kisan Vikas Patra: 7.5 per cent (will mature in 115 months)
- Public Provident Fund: 7.1 per cent
- Sukanya Samriddhi Account: 8.2 per cent
- Senior Citizens Savings Scheme: 8.2 per cent
- Monthly Income Account: 7.4 per cent.
Bank Fixed Deposits Vs Post Office Deposits: Interest Rates Comparison
Post offices are offering FD interest rates between 6.9 per cent and 7.1 per cent, while banks are providing interest rates in the range of 6.5 per cent to 8.05 per cent. The rates are for deposits for tenures between 1 year and 3 years for citizens below 60 years of age. Senior citizens are offered extra interest rates of fixed deposits.
Bandhan Bank offers the highest FD interest rates at 8.05 per cent for 1-3 tenures of deposits, according to bankbazaar.com.
Though interest rates on small savings schemes have been left unchanged for the last four quarters now, the RBI MPC is expected to cut interest rates in February or April monetary policy review.
The government notifies the interest rates on small savings schemes, majorly operated by post offices and banks, every quarter.
The government had last made changes in some schemes for the fourth quarter of the last fiscal.
What Are Small Savings Schemes?
Small Savings Schemes are savings instruments managed by the government to encourage citizens to save regularly. The small savings schemes have three categories — savings deposits, social security schemes and monthly income plan.
Saving deposits include 1-3-year time deposits and 5-year recurring deposits. These also include saving certificates such as National Saving Certificates (NSC) and Kisan Vikas Patra (KVP). Social security schemes include Public Provident Fund (PPF), Sukanya Samriddhi Account and Senior Citizens Savings Scheme. The monthly income plan includes the Monthly Income Account.
Interest prices on tiny cost savings plans like PPF, message workplace cost savings and term down payments, NSC and SSY, are evaluated at the end of every quarter and are chosen for the following quarter as necessary. The price evaluation is done on the basis of G-Sec returns of the coming before quarter (October-December 2024 in the most recent situation).
