Small Saving Scheme vs Bank FD: Even though RBI is not changing the repo rate of key interest rates for some time after back-to-back hikes from May 2022. Even on Friday, the government has not changed the interest rates on Small Savings Scheme for April-June 2024. In such a situation, where is it best to invest money?
Small Saving Scheme vs Bank FD : Even though RBI has not been changing the repo rate of key interest rates for some time after back-to-back hikes from May 2022. Last Friday, the government did not change the interest rates on the Small Savings Scheme for April-June 2024. In such a situation, where is it best to invest money, small savings scheme or bank FD? If you are also thinking this, then check the interest rate.
No change in interest rates of small savings schemes
The government said that the interest rates for small savings schemes for the first quarter of the financial year 2024-25, beginning from April 1, 2024 and ending on June 30, 2024, will be the same as those notified for the fourth quarter (from January 1, 2024 to January 1, 2024). The rates will remain unchanged. This is stated in an office memorandum. This was released by the Finance Ministry on 8 March 2024.
Post Office Small Savings Interest Rate
- Saving Scheme: 4 percent
- 1 Year Post Office FD Scheme: 6.9 percent
- 2 Year Post Office FD Scheme: 7.0 percent
- 3 year post office FD scheme: 7.1 percent
- 5 year post office FD scheme: 7.5 percent
- 5 year recurring deposit: 6.7 percent
- National Savings Certificate (NSC): 7.7 percent
- Kisan Vikas Patra: 7.5 percent (mature in 115 months)
- Public Provident Fund (PPF): 7.1 percent
- Sukanya Samriddhi Account (SSY): 8.2 percent
- Senior Citizen Saving Scheme: 8.2 percent
- Monthly Income Scheme: 7.4 percent
The government also keeps an eye on the country’s liquidity situation and inflation before deciding on the interest rates of small savings schemes. However, interest rates on small savings schemes including PPF, NSC and KVP are reviewed every quarter. Interest rates on small savings schemes range between four per cent (Post Office Savings Deposit) and 8.2 per cent (Senior Citizen Savings Scheme).
Interest rates on bank FD
Most banks are offering interest up to 7.75 percent on FD. Interest up to 8.2 percent is being offered on some small savings schemes. HDFC Bank is offering interest rates up to 7.75 percent on FD. ICICI Bank is offering interest on FD up to 7.60 percent per annum. SBI is giving interest up to 7.50 percent per annum.
