Winning Bizness Desk

Mumbai. The Narendra Modi-led government has once again disappointed crores of middle class people by not hiking the interest rates of small savings schemes. After the election results, the common people had high hopes that the government would definitely increase the interest rates of Public Provident Fund (PPF). In fact, there has been no change in the interest rates of PPF since 2020. The last time the interest rates of PPF were changed was for the April to June quarter. Now in the quarter from July to September 2024, these schemes will have the same interest rates as they have been between April to June quarter. The Finance Ministry in a notification, said that the interest rates on small savings schemes for the second quarter of the financial year 2024-25 (from July 1 to September 30, 2024) will remain the same as the rates notified for the first quarter (from March 1 to June 30, 2024).

What notification says?

According to the notification, deposits under Sukanya Samriddhi Yojana will get an interest rate of 8.2 percent, while the rate on three-year fixed deposits will be 7.1 percent. The interest rates of PPF and Post Office Savings Deposit Scheme will also remain at 7.1 percent and four percent respectively. The interest rate on Kisan Vikas Patra will be 7.5 percent and this investment will mature in 115 months. The interest rate on National Savings Certificate (NSC) will be 7.7 percent for the period July-September 2024. In the September quarter also, the Post Office Monthly Income Scheme will give 7.4 percent interest to the investors as before. The government notifies the interest rates for small savings schemes run by post offices and banks every quarter.

People of the nation had high expectations

People of the country, especially the investors who do not invest in the stock market and mutual funds but invest in government schemes like PPF, Sukanya, KVP, had high expectations from the government this time. Especially the interest rates of PPF have not increased in the last 4 years. The last change was seen in the quarter from April to June 2020. At that time, the interest rates of small savings schemes were increased from 0.40 percent to 1.50 percent. According to experts, interest rates can be increased in the quarter between October and December.