Office Memorandum: Revision of Interest Rates for Small Savings Schemes – reg.
The Department of Economic Affairs, Ministry of Finance, Government of India, has issued an Office Memorandum dated 29.12.2023, announcing the revision of interest rates for Small Savings Schemes for the fourth quarter of the financial year 2023-24, effective from 1st January, 2024 to 31st March, 2024.
The revised rates of interest for various Small Savings Schemes are as follows:
– Savings Deposit: 4.0%
– 1 Year Time Deposit: 6.9%
– 2 Year Time Deposit: 7.0%
– 3 Year Time Deposit: 7.1%
– 4 Year Time Deposit: 7.5%
– 5 Year Recurring Deposit: 6.7%
– Senior Citizen Savings Scheme: 8.2%
– Monthly Income Account Scheme: 7.4%
– National Savings Certificate: 7.7%
– Public Provident Fund Scheme: 7.1%
– Kisan Vikas Patra: 7.5% (will mature in 115 months)
– Sukanya Samriddhi Account Scheme: 8.2%
This revision has been approved by the competent authority and comes into effect from the specified date.
The announcement is a significant update in the financial landscape and will impact individuals and investors who have invested in these Small Savings Schemes. It is important for stakeholders to take note of these changes and adjust their financial planning accordingly.
Historic Background:
Small Savings Schemes have been an integral part of India’s financial ecosystem, providing individuals with safe and reliable investment options. These schemes have a long history of promoting a culture of saving and are backed by the government, making them a popular choice for many investors.
As the economic landscape evolves, periodic revisions of interest rates for Small Savings Schemes are essential to ensure alignment with prevailing market conditions and macroeconomic factors. The latest announcement reflects the government’s commitment to maintaining the attractiveness and competitiveness of these schemes for investors.
In conclusion, the revision of interest rates for Small Savings Schemes is a noteworthy development that will have implications for investors and savers. It is a reminder for individuals to stay informed about changes in the financial domain and make informed decisions about their investments.
For further details, refer to the official Office Memorandum dated 29.12.2023 from the Department of Economic Affairs, Ministry of Finance, Government of India.
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