Here are the latest interest rates of PPF, NSC, KVP, SSY and other small savings schemes from April 1 onwards
While investors with a high-risk appetite are savouring the high returns of 30 per cent given by Nifty50 in the fiscal year 2024, there are millions of conservative investors who remain content with their considerable exposure to fixed-income instruments.
Additionally, some aggressive investors allocate a portion of their portfolio to debt instruments to keep a portion of their wealth safe and secure.
Within fixed-income instruments, small savings schemes are the ones which are quite popular among the masses, and many investors opt for them for the fixed and assured returns they offer.
It is vital to note that the interest rates on small savings schemes for the June quarter (April- June) starting April 1, 2024, will remain unchanged. This was communicated through a Finance Ministry communication on March 8, 2024.
“The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1 April, 2024 and ending on 30th June, 2024 shall remain unchanged from those notified for the fourth quarter (1 January, 2024 to 31 March, 2024) of FY 2023-24," reads the letter.
However, the interest rates for two small savings schemes were recently raised, starting January 1, 2024, albeit marginally. The current rates of interest which will continue to be in force from April 1, 2024, are as follows:
(Source: Department of Economic Affairs)
As we can see in the table above, Senior Citizen Savings and Sukanya Samriddhi Account offer the highest interest rate i.e., 8.2 per cent. National Savings Certificate offers 7.7 per cent and Kisan Vikas Patra (KVP) offers 7.5 per cent.
Additionally, the rate of compounding is also a significant factor to consider. The higher the compounding, the higher the return.
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