Interest rates of small savings schemes including PPF, SSY, SCSS, NSC announced, this much interest will be available in July-September 2024 quarter

The government regularly evaluates the interest rates of small savings schemes every quarter. The Shyamala Gopinath Committee had proposed the methodology for determining these rates. Based on the recommendations of the committee, a formula has been set to determine the interest rates for different schemes within the range of 25 to 100 basis points above the yield of the government bond to maturity. The purpose of this is to ensure that the interest rates of small savings schemes remain competitive and attractive for investors. But this formula is not always followed.

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When was the last time interest rates were increased

Earlier, the government had decided to increase the interest rates of some small savings or post office schemes in the December 31, 2023 quarter. But the interest rate on PPF has remained at 7.1 percent since the April-June 2020 quarter. Whereas since May 2022, the Reserve Bank of India (RBI) has increased the policy interest rates drastically. But in the last five policy meetings, the RBI has maintained the status quo by refraining from further revision of key rates.