Govt hikes interest on two small savings schemes

The government has increased interest rates on two small savings schemes for January-March 2024 by 10-20 basis points, making it the sixth consecutive quarterly hike since October-December 2022. The Finance Ministry notified on Friday that the rate of interest on the three-year time deposit has been increased by 10 basis points to 7.1 per cent from 7 per cent while the rate of interest on the Sukanya Samriddhi Account Scheme has been hiked by 20 basis points to 8.2 percent for January-March 2024.

Despite these alterations, the interest rate for the Public Provident Fund (PPF) remains steadfast at 7.1 per cent.

The government periodically reviews the interest rates of small savings schemes on a quarterly basis.

All other small savings schemes will continue to offer the same rate of interest as the previous quarter.