New Delhi: The Union Finance Ministry on Friday said interest rates on small savings schemes for the September quarter will remain unchanged at the fixed level for the three months till June.
The three-month period ending September 30 will be the third consecutive quarter during which interest rates on small savings schemes will remain stable. According to official orders, the rates were last revised in December, when the government had set it for the March quarter of FY24.
The highest rate of 8.2% is applicable for both Sukanya Samriddhi Account Scheme and Senior Citizen Savings Scheme. Sukanya Samriddhi Scheme is backed by the government and helps parents create a fund for the education of girl children.
Small Savings Schemes
National Savings Certificate Scheme offers 7.7% interest, while Kisan Vikas Patra and five-year fixed deposits offer 7.5% interest. One to five-year fixed deposits offer interest at the rate of 6.9% to 7.5%.
Small savings schemes are important for common people as they provide convenient and risk-free savings options. Some of these instruments, for example, National Savings Certificate, Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana are eligible for income tax benefits under Section 80C of the Income Tax Act. Under this, investments up to Rs 10 lakh are eligible for income tax exemption under Section 80C of the Income Tax Act. A deduction of up to Rs 1.5 lakh per annum is allowed while computing taxable income.
