The Central Government has announced that interest rates for various small savings schemes, including the Public Provident Fund (PPF), Senior Citizens’ Savings Scheme (SCSS), and Sukanya Samriddhi Yojana (SSY), will remain unchanged for the fourth consecutive quarter, effective January 1, 2025. This decision ensures stability for investors, extending the rates set in April 2024.
Interest Rates for Q4 FY25
| Scheme | Interest Rate (Q4 FY25) |
|---|---|
| Public Provident Fund (PPF) | 7.1% |
| Senior Citizens’ Savings Scheme (SCSS) | 8.2% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| Post Office Savings Account | 4% |
| Kisan Vikas Patra (KVP) | 7.5% |
| National Savings Certificate (NSC) | 7.7% |
| Post Office Monthly Income Scheme | 7.4% |
| Post Office Time Deposit (5 years) | 7.5% |
These rates are applicable from January 1, 2025, to March 31, 2025.
Key Schemes at a Glance
Public Provident Fund (PPF)
- Interest Rate: 7.1% (tax-free).
- Investment Limits: ₹500 minimum; ₹1.5 lakh maximum per financial year.
- Tenure: 15 years, extendable in 5-year increments.
- Tax Benefits: Exempt under Section 80C of the Income Tax Act.
Senior Citizens’ Savings Scheme (SCSS)
- Interest Rate: 8.2% per annum.
- Eligibility: Individuals aged 60 years and above.
- Investment Limits: ₹1,000 minimum; ₹30 lakh maximum.
- Tenure: 5 years, extendable by 3 years.
- Premature Withdrawal: Allowed with penalties.
Sukanya Samriddhi Yojana (SSY)
- Interest Rate: 8.2%.
- Eligibility: For girl children below 10 years; account managed by parents/guardians.
- Investment Limits: ₹250 minimum; ₹1.5 lakh maximum annually.
- Tax Benefits: Exempt under Section 80C; interest and maturity proceeds are tax-free.
Why the Interest Rates Remain Unchanged
The government’s decision to maintain rates aligns with its efforts to ensure stability in the savings market while promoting long-term investments. The unchanged rates are particularly beneficial for risk-averse investors seeking steady returns.
Small Savings Schemes
| Scheme | Interest Rate (Q4 FY25) | Tenure | Tax Benefits |
|---|---|---|---|
| Public Provident Fund (PPF) | 7.1% | 15 years | Yes (Sec 80C) |
| Senior Citizens’ Savings Scheme (SCSS) | 8.2% | 5 years (extendable) | Yes |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | 15 years | Yes (Sec 80C) |
| Kisan Vikas Patra (KVP) | 7.5% | 123 months | No |
| National Savings Certificate (NSC) | 7.7% | 5 years | Yes (Sec 80C) |
Conclusion
The decision to maintain interest rates for small savings schemes provides consistent returns for investors, especially in a fluctuating economic environment. Popular schemes like PPF, SCSS, and SSY continue to be reliable options for building a secure financial future with tax-saving benefits.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Please consult a financial advisor before making any investment decisions.
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