Small Savings Rates hiked for two schemes; PPF remains static

The Union government announced minor increases in returns for the Sukanya Samriddhi Account Scheme (SSAS) and 3-year time deposits for the first quarter of 2024, raising rates from 8% to 8.2% and from 7% to 7.1%, respectively. However, most small savings schemes, including the Public Provident Fund (PPF), maintained unchanged interest rates. This decision followed previous hikes in select schemes, with the PPF rate unchanged since April 2020, despite the RBI's recommendations for adjustments based on the formula-based rates regime for small savings schemes introduced in 2016. The rates for the upcoming quarter are linked to government bond yields between September and November 2023, indicating stability in returns for several popular savings schemes.

F.No.1/4/2019-NS
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)

North Block, New Delhi
Dated: 29.12.2023

OFFICE MEMORANDUM

Subject: Revision of Interest Rates for Small Savings Schemes – reg.

The rates of interest on various Small Savings Schemes for the fourth quarter of financial year 2023-24 starting from 1st January, 2024 and ending on 31st March, 2024 have been revised as detailed below:

2. This has the approval of competent authority.

(Kapil Patidar)
Deputy Secretary (Budget)
Tele – 01123xxxxxxx