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The Centre on Tuesday (December 31, 2024) decided to maintain a status quo on the returns payable on small savings schemes for the January to March 2025 quarter, making it the fourth successive quarter that these rates have remained unchanged.
The interest rates on small savings schemes such as the Public Provident Fund (PPF) and National Savings Certificate (NSC) are reset each quarter as per a formula linked to the yields on government securities of similar maturities.
The government had raised the interest rates on most small savings schemes through a series of hikes announced since the third quarter of 2022-23, cumulatively increasing the rates in the range of 70-250 basis points (bps). One basis point equals 0.01%.
The return on Sukanya Samriddhi Account Scheme, which is also tax-free like the PPF, was raised to 8.2% at the beginning of this year. The PPF rate will remain unchanged at 7.1%, a level it has been kept at since April 2020.
Published – December 31, 2024 06:48 pm IST
