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Small Savings Scheme Interest Rates 2024: The central government revised the interest rates of small savings schemes for the January-March quarter of this year (January-March Quarter 2024) and at the end of December 2023. The new interest rates will be effective from 01 January 2024 till 31 March 2024. As per the formula recommended by the Shyamala Gopinath Committee, the central government revises the interest rates of small savings schemes every three months.
What is Small Amount Savings Scheme?
Small Amount Savings Scheme is a program implemented by the central government to increase the habit of saving among the people. Even poor people can save money in these schemes for a very small amount monthly/at a specified time. Deposited money earns interest. After hiding this for a few years, people can withdraw a large sum together with principal + interest at once.
Currently, the small amount savings schemes run by the central government are… 1, 2, 3, 5 years fixed deposits/ time deposits, 5 years Recurring Deposit (RD), Senior Citizens Savings Scheme (SCSS), Monthly Income Scheme (POMIS) , National Savings Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana (SSY).
Sukanya Samriddhi Yojana Interest Rate 2024 (Sukanya Samriddhi Yojana Interest Rate for Jan-Mar 2024)
According to a circular issued by the Finance Ministry on December 29, 2023… the Central Government has increased the interest rate on the Sukanya Samriddhi Yojana (SSY) for the January-March quarter of 2024, a New Year gift to the scheme’s investors. The central government has increased the interest rate on this scheme from the previous 8 percent to 8.2 percent (SSY new interest rate). Sukanya Samriddhi Yojana is a special scheme among small savings schemes. The central government is implementing this scheme exclusively for girls. The central government has increased the interest rate of Sukanya Samriddhi Yojana from 7.6 percent to 8 percent during April-June 2023. Adding to this, the SSY has increased the interest rate by 0.60 per cent in the current financial year (2023-24).
The central government has increased the interest rate on 3-year term deposits from the previous 7 percent to 7.1 percent (New interest rate on 3-year term deposits). There is no change in the interest rates of the rest of the small savings schemes, which have remained unchanged.
Interest rates on small savings schemes for January-March quarter 2024
– Interest rate of 4 percent is applicable on savings deposits.
– 6.9 percent on 1 year time deposit
– 7 percent on 2 years time deposit
– 7.1 percent on 2-year time deposit
– 7.5 percent on 5 years time deposit
– 6.7 percent on 5-year recurring deposits
– 8.2 percent interest rate on Sukanya Samriddhi Yojana
– The interest rate on National Savings Certificate (NSC Interest rate) is 7.7 percent.
– 7.5 percent interest rate (KVP Interest rate) for those who invest in Kisan Vikas Patra. Its maturity period is 115 months.
– 8.2 percent (SCSS Interest rate) on Senior Citizen Saving Scheme
– 7.4 percent (POMIS Interest rate) on Post Office Monthly Income Scheme
– 7.1 percent (PPF Interest rate) on investments in Public Provident Fund
Among the small savings schemes, PPF (Public Provident Fund) is a very popular scheme. The central government has not changed the interest rate of this scheme from April 2020 till now. Income tax is not applicable on maturity amount in PPF scheme.
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