The interest rates on two small savings plans will be raised by the central government from January to March of 2024. Rates on these financial products have increased for the sixth consecutive quarter.
The finance ministry officially announced on December 29 that the interest rate on the three-year time deposit has increased to 7.1 percent from 7.0 percent, an increase of 10 basis points. In addition, the interest rate for the Sukanya Samriddhi Account Scheme was increased by 20 basis points, to 8.2 percent for the January–March 2024 period.
All other small savings plans will continue to offer the same interest rates as those that were in effect from October through December. It is anticipated that this action will promote saving and improve the financial security of those who participate in these programs.
The Sukanya Samriddhi Account is a savings scheme supported by the Government of India, designed for the parents of female children. This initiative motivates parents to create a fund specifically for the future education of their daughters.
