Interest rates remain unchanged on National Small Saving Schemes

The Union Ministry of Finance has made no change in the interest rates on the various schemes under the National Small Saving Scheme, for the last quarters of the 2024-25 fiscal year. The interest rate will remain unchanged from 1st January to 31st March 2025.

The Union Ministry of Finance has reviewed the interest rates on the small saving schemes every quarter since 2016.

What are the National Small Savings Schemes? 

The National Small Savings Scheme is managed by the Ministry of Finance, Government of India offered to the general public through the post office and also through banks in the case of the Public Provident Fund. The government offers interest rates on the deposits made by the public in these schemes.

The investment in these schemes is 100 % safe as it is guaranteed by the government of India.

Use of the Deposits

• The money received by the government is pooled by the government in the National Small Savings Fund which is used by the central government to meet its fiscal deficit.

Categories of Schemes 

The National Small Savings Schemes are grouped into three categories - Post office deposits, savings certificates, and social security schemes.

Post Office Deposits & Interest Rates 

Under the Post Office deposits, there are saving accounts and time deposits (recurring and fixed)

Saving Accounts: 

• The minimum account opening requirement is Rs 500 and no maximum limit. 
• The interest rate is 4 % per year. 
• It is the only savings account in India that is not regulated by the Reserve Bank of India.

Recurring Deposit:

• The minimum account opening is Rs 100 and Rs 10 per month. 
• There is no maximum deposit limit. 
• The interest rate is 6.7% per annum.
• The maturity (duration) period is 5 years.

Time Deposit Accounts:

• The maturity(duration) of the account is 1 to 5 years (interest rate varies from 6.9 % to 7.5 % per year depending upon the duration ). 
• The minimum account opening is Rs 1000 and there is no maximum deposit limit.
• The principal and interest amount is paid at the maturity of the account.

National Monthly Income Account:

• The duration of the account is 5 years and the interest rate is Rs 7.4 % per year. 
• The interest is paid monthly to the depositor.
• The minimum account opening is Rs 1000 and the maximum limit is Rs 9 lakhs for a single account. For joint accounts, the maximum limit is Rs 15 lakhs.

National Citizen Savings Scheme:

• It is for persons above 60 years. 
• The minimum account opening requirement is Rs 1000 and the maximum is Rs 30 lakhs. 
• the interest rate is 8.2 % per year and it is paid every quarter.
• The duration of the scheme is 5 years.

Sukanya Samridhi Yojana: 

• For girl children below 10 years of age.
• Accounts can be opened in a maximum of two girls' names. 
• Rate of Interest 8.2 % per year. 
• Minimum account opening Rs 250 and maximum 1.50 lakhs in a financial year. 
• Deposit for a maximum period of 15 years from the opening of the account.
• The account can be closed after 21 years from the date of opening of the account or at the time of marriage of the girl after she attains 18 years of age.

Saving Certificates 

National Saving Certificates (NSC): 

• The minimum account opening amount is Rs 1000 and no maximum limit.
• Interest rate -7.7% per year.  
• The duration of the scheme is 5 years.
• The principal and interest amount is paid after 5 years.

Kisan Vikas Patra (KVP):

• The minimum account opening is Rs 1000 and no maximum limit. 
• The interest rate is 7.5% and the deposit amount doubles in 115 months.
• The principal and interest amount is paid after 115 months.

Mahila Samman Saving Certificates :

• Minimum account opening Rs 1000 and maximum Rs 2 lakh. It is for women only. 
• Interest rate 7.5% per year.
• The duration of the scheme is 2 years.
• The principal and interest amount is paid after 2 years.

Social Security Schemes

Public Provident Fund:

• Only one account per person can be opened in the post office or banks.
• The account can be opened in the name of minors. 
• Minimum account opening Rs 500 and maximum Rs 1.5 lakh in a financial year. 
• Interest rates are 7.1% per year.
• Duration -15 years.