NewDelhi: In a recent announcement on December 29, 2023, the government disclosed the revised interest rates for various small savings schemes applicable from January to March 2024. As of March 31, 2024, certain schemes, including the Sukanya Samriddhi Account Scheme and the three-year time deposit, are set to experience an increase in interest rates.
While adjustments have been made to several schemes, the interest rate for the Public Provident Fund (PPF) remains steady at 7.1 percent.
Notably, there is a 20 basis points increment in the interest rates for the Sukanya Samriddhi Account Scheme (SSAS) and the three-year time deposit.
The SSAS interest rate has now been raised to 8.2 percent for the upcoming January-March 2024 period. It’s essential to understand that one basis point represents one-hundredth of a percentage point.
Contrary to these modifications, the interest rates for all other small savings schemes will remain unchanged, retaining the rates observed in October-December 2023.
The determination of interest rates on small savings is linked to market yields on government securities, incorporating a spread of 0-100 basis points over the yield of comparable-maturity securities.
The government periodically reviews small savings scheme interest rates every quarter.
Bureau Report
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