Govt keeps interest rates for small savings schemes unchanged for July-Sept quarter, PPF, SCSS, Sukanya Samriddhi Yojna. Sukanya Samriddhi Yojana will continue to offer 8.2% interest rate: No change in interest rates of all small savings schemes for July-September quarter of FY25

The government has made no changes in the interest rates of all small savings schemes for the July-September quarter (Q2FY25). The Finance Ministry has given this information by issuing a notification on Friday (June 28). Earlier, there was no change in the interest rates of all small savings schemes for the April-June quarter (Q1FY25).

The Finance Ministry said in the notification that the interest rates of small savings schemes for the second quarter of the financial year 2024-25, starting from July 1, 2024, ending on September 30, 2024, will be the same as the interest rates for the first quarter of FY 2024-25 (April 1, 2024 to June 30, 2024). 2024) will remain unchanged from the notified rates.

7.1% interest rate will continue to be available on Public Provident Fund
This means that for the July-September 2024-25 quarter, 7.1% interest rate will be available on Public Provident Fund (PPF) and 8.2% interest rate on Sukanya Samriddhi Yojana. The government also keeps an eye on the country’s liquidity situation and inflation before deciding on the interest rates of small savings schemes. However, interest rates on small savings schemes including PPF, NSC and KVP are reviewed every quarter. Interest rates on small savings schemes range between 4% to 8.2%.

The last change in interest rates was in December.
On December 29, the government had announced the interest rates of small savings schemes for the January-March 2024 quarter. Then Sukanya Samriddhi Yojana was increased by 0.20% and 3 year time deposit rates were increased by 0.10%. Whereas the rates of other schemes were not changed.

Earlier, the government had increased the rates on RD by 0.20% for October-December. Earlier the interest rate of Sukanya Scheme was 8% and the interest rate of three year time deposit was 7%. This was the sixth consecutive quarter when the rates of these schemes had increased. The Finance Ministry had not changed the interest rates of small savings schemes for nine consecutive quarters. After this, it started increasing from October-December 2022.

SSY scheme was launched on 22 January 2015
Sukanya Samriddhi Yojana was launched by Prime Minister Narendra Modi on 22 January 2015 as a part of the Beti Bachao Beti Padhao campaign. This scheme is to meet the education and marriage expenses of the daughter.

The age of the daughter should be less than 10 years. Only one account is allowed for a daughter. A family can open only two SSY accounts. SSY account can be opened offline by visiting bank or post office.

The minimum investment in this is ₹250 per year. Maximum investment is ₹1,50,000 per year. Maturity period is 21 years. For this, daughter’s birth certificate, photo ID of parents or legal guardian and address proof will have to be given.

Interest rates are reviewed every quarter
The interest rates of Small Savings Scheme are reviewed every quarter. The formula for determining their interest rates was given by the Shyamala Gopinath Committee. The committee had suggested that the interest rates of these schemes should be 0.25-1.00% higher than the yield of government bonds of similar maturity.

These schemes are the major source of household savings
Small Savings Scheme is the major source of household savings in India and comprises 12 instruments. In these schemes, depositors get fixed interest on their money. Collections from all small savings schemes are deposited in the National Small Savings Fund (NSSF). Small savings schemes have emerged as a source of financing government deficit.

Classification

Small savings instruments can be divided into three parts: