PPF, Sukanya Samriddhi, SCSS, and more: Govt keeps interest rates on most small saving schemes for Q3 unchanged

The government has kept interest rates for most small savings schemes, such as senior citizens accounts, National Savings Certificates (NSC), Kisan Vikas Patra (KVP) and Public Provident Fund ((PPF), unchanged for the third quarter of the current financial year starting October 1, a release issued by the finance ministry said on Friday.

There has been no change in interest rates for Senior Citizens Savings Scheme (SCSS) which continues at 8.2%, Monthly Income Account Scheme (7.4%), NSC (7.7%), PPF (7.1%), KVP (7.5% will mature in 115 months) and Sukanya Samriddhi Account Scheme (8%). Government has decided on 20 bps hike on five-year recurring deposit at 6.7% for Q3FY24 as against existing 6.5%. The interest rates on 1-year, 2-year, 3-year and 4-year time deposits have, however, been kept unchanged at 6.9%, 7%, 7% and 7.5% respectively.

Centre has not changed the interest rate on the extremely popular Public Provident Fund since the April-June 2020 quarter, when it was reduced to 7.1% from 7.9%. Most investors have been hoping that the rate for this instrument would be hiked again.  

The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter.