Small Savings Scheme 2024 : The central government is revising interest rates of small saving schemes including PPF, SSY, RD, Mahila Samman certificate etc. So if you are investing in a Small Savings Scheme 2024 for your future then you should check the interest rates on Small Savings Scheme 2024 which will be released by the central government for this quarter.
We will discuss with you the latest update from the Central Government in this article “Small Savings Scheme 2024” to provide you insight into increasing interest rates on the Small Savings Scheme 2024.
Small Savings Scheme 2024
The Small Savings Scheme 2024 include several reliable products and offering risk-free investment returns. Around 1.54 lakh post offices spread all over the country operates Small Savings Scheme 2024. For example, the government operates the PPF scheme through 8200 public sector banks and post offices in each city. These investments are government-supported and thus provide guaranteed returns.
Investments in post office Small Savings Scheme 2024 help to create a corpus for emergency purposes and achieve objectives. They also offer tax benefits up to Rs.1.5 lac under Section 80C of the Income Tax Act. The different schemes offered by the post office are discussed below.
Interest Rates Hike on Small Savings Scheme 2024
The Finance ministry of India has revised the interest rate on Small Savings Scheme 2024 on 29 December 2023 by uploading an official notification on the official website. According to this notification multiple Small Savings Scheme 2024 in India such as public provident fund, Sukanya Samriddhi Yojana, Mahila Samman certificate, post office Saving Scheme etc..will receive interest rates according to the new structure announce by the Ministry of Finance.
These interest rates are released for the first quarter of 2024 and will provide interest rates from January 2024 to March 2024. Beneficiaries who are already involved in these Small Savings Scheme 2024 will get interest rates on their deposit amount till December month of 2023 according to the previous quarter interest rates.
2 Small Savings Scheme 2024 Interest Rates Hiked
However there are Total 12 schemes listed in the operation notification of the Finance ministry of Small Savings Scheme 2024, where all the schemes will provide interest rates to the beneficiaries according to the previous quarter while 2 small saving schemes including Sukanya Samriddhi Yojana and 3 year TD scheme interest rates got hiked. So if you have invested in these Small Savings Scheme 2024, then you will get higher integrated in upcoming 3 months of 2024.
However other depositors will get the same benefit as they were getting in the last quarter of December 2023. So beneficiaries who are getting the benefit of Sukanya Samriddhi Yojana will get interest rates of 8.2% till January to March 2024. If you have deposited the amount for 3rd year of TD then you will get 7.1% interest.
New Small Savings Scheme 2024 interest rates
The interest rates on saving deposit will be 4%, 6.9% interest will be provided on one year time deposit, 7 percent will be provided to 2 year time deposit, If you are using 5 year time deposit scheme then you will get 7.5% interest rates. Applicants who are getting benefit of RD Scheme of 5 year will get 6.7% interest. Interest rates for monthly income account scheme is 7.4%, National Saving Scheme beneficiaries will get 7.7%.
PPF account holders are getting 7.1% interest on the deposit amount. The interest rate for senior citizen savings schemes is 8.2%. The Kisan Vikas Patra scheme will provide 7.5% interest rates to the farmers for the 115-day scheme. The above-mentioned schemes are registered under Small Savings Scheme 2024 of the Government of India and the intersects on this scheme were same for the quarter of October to December 2023.
The finance ministry has not changed interest rates on these schemes and beneficiaries will get interest rates according to the last Quarter interest rates. However, beneficiaries of Sukanya Samriddhi Yojana were getting 8% interest and now they will get 8.2% interest rates. Similarly, beneficiaries of 3rd year TD scheme were getting 7% interest in October to December month and now they will get 7.1% interest for January to March 2024.
Small Savings Scheme 2024 Types
- Postal Deposit :
- Saving Account, Recurring Deposit, Time Deposit and Monthly Income Scheme
- Saving Certificate: National Small Savings Certificate(NSC), Kisan Vikas Patra(KVP)
- Social Security Schemes: Sukanya Samriddhi Yojana, Public Provident Fund (PPF) and Senior Citizens Savings Scheme (SCSS).
Savings Schemes Under Post Office Investments
Post Office Savings Account :-
- The minimum deposit to open a post office savings account is Rs.
- The domestic client can open the account in single or joint ownership.
- An interest rate of 4% p.a. Is applicable on the deposits in the post office account.
- You can avail of a cheque book, ATM card, e-banking and mobile banking services, and other services with the account on request. Interest is credited at the end of every financial year.
- Individuals can avail up to Rs 10,000 deduction from the total income under section 80TTA of the Income Tax Act.
5-Year Post Office Recurring Deposit Account (RD) :-
- As the name suggested, the tenure of this RD account is fixed for five years.
- You can agree to a fixed monthly deposit payment starting from Rs 100 and earning interest at 6.5% p.a.
- The interest is compounded monthly.
- You can get a loan of up to 50% against the deposit available in the account after completing 12 installments without failing.
Post Office Time Deposit Account (TD) :-
- There are four possible tenures for post office time deposit accounts you can chose from, i.e. 1 year, 2 years, 3 years, and 5 years.
- The minimum deposit allowed in this account is Rs 1,000.
- The interest is calculated quarterly but is payable on an yearly basis. The interest rates for Q2 FY 2023-24 ie from July 1, 2023 to September 30, 2023 are as follows :-
| Period | Interest Rates |
| 1 year account | 6.9% |
| 2 year account | 7% |
| 3 year account | 7% |
| 5 year account | 7.5% |
- The investment in the account with five years maturity will qualify for Section 80C deduction.
- The Post Office TD account can also be plowed as a security to scheduled or cooperative banks.
- Deposits cannot be withdrawn before the expiration of six months from the date of deposit.
How to apply for Post Office Saving Schemes Account ?
- Visit the Department of Posts (DOP) Internet Bank website.
- Click on ‘New User Activation’ button
- Enter the ‘Customer ID’ and ‘Account ID’ and click the ‘Continue’ button. You can also visit your home post office branch,
- Fill out the application form for activating Internet banking and submit with necessary documents.
- Once Internet Banking is activated, enter your user ID and password to log in to your DOP Internet Banking.
- Click on the ‘General Service’ tab on the menu and click on the ‘Service Request’ tab.
- Under the ‘Service Request’ section, click the ‘New Requests’ tab.
- Choose the type of account you want to open from the multiple options.
- Enter the details on the application form and click the ‘Submit’ button.
