Business Part 18
Government Keeps Small Savings Rates Unchanged for September Quarter
New Delhi: On Friday, the Union finance ministry announced that the interest rates for small savings schemes will remain the same for the September quarter, continuing the rates set for the previous three months ending in June.
This marks the third consecutive quarter that the interest rates for these savings schemes have not changed. The last adjustment was made in December for the March quarter of the fiscal year 2023-24, according to official statements.
The highest interest rate of 8.2% is available for both the Sukanya Samriddhi account scheme and the senior citizen savings scheme. The Sukanya Samriddhi scheme, supported by the government, helps parents save money for their daughter’s education.
In related news, the National Savings Certificate scheme offers an interest rate of 7.7%, while the Kisan Vikas Patra and five-year time deposits each provide a 7.5% interest rate. Time deposits ranging from one to five years have interest rates between 6.9% and 7.5%.
Small savings schemes are crucial for many people as they offer safe and convenient ways to save money. Some of these schemes, such as the National Savings Certificate, Senior Citizen Savings scheme, and Sukanya Samriddhi Yojana, also provide income tax benefits under section 80C of the Income Tax Act. This allows for a deduction of up to ₹1.5 lakh per year when calculating taxable income.
