Discover the Powerful New Small Savings Schemes 2025

The Government of India has announced that the interest rates for various small savings schemes will remain unchanged for the third quarter of the financial year 2024-25, covering the period from October 1, 2024, to December 31, 2024.

Here is a summary of the current interest rates for these schemes:

• Savings Deposit: 4.0% per annum.

• Time Deposits:

  • 1-Year: 6.9%
  • 2-Year: 7.0%
  • 3-Year: 7.1%
  • 5-Year: 7.5%

• Recurring Deposit (5-Year): 6.7%

• Senior Citizen Savings Scheme (SCSS): 8.2%

• Monthly Income Account Scheme: 7.4%

• National Savings Certificate (NSC): 7.7%

• Public Provident Fund (PPF): 7.1%

• Kisan Vikas Patra (KVP): 7.5%, with a maturity period of 115 months

• Sukanya Samriddhi Account Scheme: 8.2%

These rates are consistent with those from the previous quarter, reflecting the government's commitment to providing stable and secure investment options for small savers, including senior citizens and parents investing in schemes like the Sukanya Samriddhi Yojana.

The Senior Citizen Savings Scheme (SCSS) and the Sukanya Samriddhi Account Scheme continue to offer the highest interest rates at 8.2%, making them particularly attractive for senior citizens and for parents saving for their daughters' futures, respectively.

The Public Provident Fund (PPF) remains a popular long-term investment option with a 7.1% interest rate, offering tax benefits under Section 80C of the Income Tax Act.

The National Savings Certificate (NSC) offers a 7.7% interest rate, suitable for medium-term investment goals, and also qualifies for tax deductions under Section 80C.

The Kisan Vikas Patra (KVP) provides a 7.5% interest rate with a maturity period of 115 months, appealing to those seeking a secure, long-term investment.

It's important to note that the interest earned on some of these schemes is taxable, and investors should consider the tax implications when choosing the most suitable investment option.

The unchanged interest rates for this quarter indicate the government's strategy to maintain consistency in returns for small savers amidst varying economic conditions.

Investors are advised to assess their financial goals, risk tolerance, and investment horizons when selecting the appropriate small savings scheme.

For the most current information and any future updates on interest rates, individuals should refer to official government notifications or consult with financial advisors.