The government recently revealed the updated interest rates for several small savings plans that will be available from January to March 2024 in an announcement made on December 29, 2023. Certain schemes, like the three-year time deposit and the Sukanya Samriddhi Yojana, are expected to see an increase in interest rates as of March 31, 2024.
The Public Provident Fund (PPF) interest rate is still 7.1 per cent even though changes have been made to a few schemes.
Notably, the interest rates for the three-year time deposit and the Sukanya Samriddhi Account Scheme have increased by 20 basis points.
With effect from January to March of 2024, Sukanya Samriddhi Yojana the interest rate has been increased to 8.2 per cent. One-hundredth of a percentage point is represented by one basis point, which is crucial for understanding.
In contrast to these changes, the interest rates on all other small savings plans will stay the same as they were from October through December of 2023.
Small savings interest rates are determined by a spread of 0-100 basis points over the interest rate of comparable-maturity securities, which is based on market yields on government securities.
Every four months, the government reviews the interest rates on small savings plans.
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