The central government has kept the interest rates unchanged on various small savings schemes for the October-December quarter, according to an official notification from the Ministry of Finance.

The interest rates on small savings schemes are typically reviewed every quarter by the government.

For the Public Provident Fund (PPF), one of the most popular small savings schemes, the interest rate will continue to be 7.1 per cent. This scheme is widely favored due to its tax benefits and long-term savings potential.

The Senior Citizen Savings Scheme (SCSS) will also maintain its interest rate at 8.2 per cent. This scheme is specifically designed to provide financial security to senior citizens, offering higher returns compared to other savings options.

Deposits made under the Sukanya Samriddhi Yojana, which is aimed at encouraging savings for the education and marriage expenses of girl children, will continue to earn an interest rate of 8.2 per cent. This scheme is an integral part of the government’s ‘Beti Bachao Beti Padhao’ initiative.

The National Savings Certificate (NSC), which is a fixed-income investment plan, will keep its interest rate at 7.7 per cent. This scheme is considered a secure investment with moderate returns.
The Post Office Monthly Income Scheme (PO-MIS), which provides regular monthly income to investors, will offer an interest rate of 7.4 per cent.

The Kisan Vikas Patra (KVP), a government-backed savings scheme designed to double the investment over a specific period, will continue to provide an interest rate of 7.5 per cent.

Additionally, the 5-Year Recurring Deposit (RD) scheme, which allows investors to deposit a fixed amount every month, will offer an interest rate of 6.7 per cent.

These small savings schemes offer guaranteed returns at regular intervals, compounded monthly, quarterly or annually, as the case may be.

The formula to arrive at the interest rates for a small savings scheme was given by the Shyamala Gopinath Committee. The committee had suggested yields on government bonds should be the benchmarks for the interest on various small savings instruments and should be reset every first of April.