Small savings schemes interest rates for Q1 2025: The Centre has announced interest rates for various small savings schemes for the last quarter (January-March) of the financial year 2024-25.
The interest rates have been kept unchanged for various small savings schemes, including PPF and NSC, yet again, an official notification by the finance ministry has revealed.
“The rates of interest on various small savings schemes for the fourth quarter of FY 2024-25, starting from January 1, 2025, and ending on March 31, 2025, shall remain unchanged from those notified for the third quarter (October 1, 2024, to December 31, 2024) of FY 2024-25,” the finance ministry said.
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How does govt decide interest rates on small savings schemes?
The Centre notifies the interest rates for small savings schemes, primarily managed by post offices and banks, on a quarterly basis. The formula for determining these interest rates was recommended by the Shyamala Gopinath Committee. The committee proposed using the yields on government bonds as benchmarks for setting interest rates on various small savings instruments, with adjustments to be made annually on the 1st of April.
Interest rates on PPF, SSY, SCSS
According to the latest notification, the interest rates for popular small savings schemes like the Public Provident Fund (PPF) and post office savings deposits have been retained at 7.1% and 4%, respectively.
The Kisan Vikas Patra (KVP) continues to offer an interest rate of 7.5%, with investments maturing in 115 months. Similarly, the Post Office Monthly Income Scheme (PO-MIS), which provides regular monthly income to investors, offers an interest rate of 7.4%.
The Senior Citizen Savings Scheme (SCSS) maintains its attractive interest rate of 8.2%, catering specifically to senior citizens by offering higher returns to ensure financial security.
For the January-March 2025 quarter, the National Savings Certificate (NSC), a fixed-income investment option, will continue to earn an interest rate of 7.7%. As in the current quarter, the Post Office Monthly Income Scheme remains at 7.4%, providing a safe investment option with moderate returns.
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Deposits made under the Sukanya Samriddhi Yojana (SSY), which aims to support the education and marriage expenses of girls,
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