PPF, SCSS, SSY Interest Rate July-Sep 2024: Here's How Much You Earn From Govt Savings Scheme

Various government-backed savings schemes are available through financial institutions nationwide, each with unique features such as tenure, eligibility criteria, deposit limits, and interest rates.

Interest rates on small savings schemes like PPF, post office savings, term deposits, NSC, and SSY are reviewed quarterly and adjusted for the following quarter.

These schemes, initiated by the government, cater to different segments of society. Some are designed specifically for senior citizens, others for women’s welfare, and there are specialised schemes for farmers and salaried individuals.

Post Office Savings Schemes Interest Rates

The interest rates for post office savings, senior citizens saving schemes (SCSS), and public provident fund (PPF) will remain unchanged for the quarter starting July 1st, 2024.

The government typically revises these rates every quarter. For the initial quarter of fiscal year FY25 (July-September 2024), the government has decided to maintain the interest rates at the same level as those set in the preceding quarter.

Here are the latest interest rates (July-September 2024) of ten government-backed schemes that can be availed from post offices across the country;

1. Senior Citizens Savings Scheme

• Minimum deposit Rs 1000 in the multiples thereof with a maximum deposit of Rs 30 lakhs.
• An individual who has attained the age of 60 years or above on the date of opening of an account or an individual who has attained the age of 55 years or more but less than 60 years and has retired under Superannuation, VRS or Special VRS, can open an account.
• Retired personnel of Defence Services (excluding Civilian Defence employees) may open an account upon attaining the age of fifty years subject to the fulfilment of other specified conditions.
• A depositor may open an account individually or jointly with a spouse.
• Interest shall be payable from the date of deposit to 31st March/ 30th June/30th September/31st December on 1st working day of April/July/October/January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/July/October/January.
• The account can be closed after the expiry of 5 years from the date of opening of the account.
• The depositor may extend the account for a further period of 3 years.
• Premature closure is permissible subject to certain conditions.
• Deposits in SCSS qualify for deduction u/s 80-C of the Income Tax Act.
• Senior Citizens Savings Scheme Interest rate: (July 01 to September 30, 2024)- 8.20%

2. National Savings (Monthly Income Account) Scheme

• Minimum Rs 1000 in the multiples thereof. Maximum Rs 9 lakhs in a single account and Rs 15 lakhs in a joint account.
• The account matures in 5 years.
• A depositor may operate more than one account under this scheme subject to the ceiling of the maximum amount, which may be invested in a single, or joint account.
• The account can be closed prematurely after one year but before the expiry of three years on deduction of 2% of the deposit. In case the account is closed after the expiry of three years, 1% of the deposit shall be deducted.
• National saving account interest rate: (July 01 to September 30, 2024)- 7.4%

3. National Savings Time Deposit Account

• Four categories of Time Deposit Accounts are available – 1 year, 2 years, 3 years and 5 years
• Minimum deposit Rs 1000 and thereafter in the multiples of Rs 100.
• No maximum deposit limit.
• An account can be closed after six months. Where deposits in the account are withdrawn prematurely after six months but before one year, simple interest at POSA rate shall be payable.
• Deposits in 5-year Time Deposit qualify for deduction u/s 80-C of Income Tax Act.
• Interest: (July 01 to September 30, 2024)- 6.90 (1 year) 7 (2 years) 7.10 (3 years) and 7.5% (5 years).

4. National Saving certificate (VIII issue)

• Minimum deposit Rs 1000/- and thereafter in multiple of Rs 100.
• Account matures in 5 years
• No maximum deposit limit.
• A single holder type account may be opened by an adult for himself or on behalf of a minor.
• A single holder type account may also be opened by a minor on attaining the age of 10 years.
• Joint ‘A’ Type accounts may be opened by up to three adults payable to both the holders jointly or to the survivor.
• Joint ‘B’ Type accounts may be opened by up to three adults payable to either of the survivors.
• Loan facility available by pledging with the banks.
• Interest: (July 01 to September 30, 2024)- 7.7%.

5. Public Provident Fund Scheme

• The minimum deposit Rs 500 and the maximum deposit Rs 1,50,000 in a financial year.
• Loan facility is available from 3rd financial year upto 6th financial year.
• Withdrawal is permissible every year from 7th financial year.
• Account matures on completion of fifteen complete financial years from the end of the year in which the account was opened.
• After maturity, the account can be extended for any number for a block of 5 years with further deposits.
• Account can be retained indefinitely without further deposit after maturity with the prevailing rate of interest.
• The amount in the PPF account is not subject to attachment under any order or decree of a court of law.
• Deposit qualifies for deduction under Sec.80-C of I.T.Act.
• Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.
• PPF Interest rate: 7.1%

6. Sukanya Samriddhi Account

• Minimum deposit Rs 250 and maximum deposit Rs 1.5 lakhs in a financial year.
• The account can be opened in the name of a girl child till she attains the age of 10 years.
• Only one account can be opened in the name of a girl child.
• Accounts can be opened in post offices and authorised banks.
• Withdrawal shall be allowed for higher education of the account holder to meet education expenses.
• The account can be prematurely closed in case of marriage of a girl child after her attaining the age of 18 years.
• The account can be transferred anywhere in India from one Post office/Bank to another.
• The account shall mature on completion of a period of 21 years from the date of opening of the account.
• Deposit qualifies for deduction under Sec.80-C of I.T.Act.
• Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.
• Sukanya Samriddhi Account Interest rate July 01 to September 30, 2024: 8.20%

7. Mahila Samman Saving Certificate

Mahila Samman Saving Certificate scheme is a one-time new small savings scheme of the government of India announced in the Budget 2023.

This offers a deposit facility upto Rs.2 lakh in the name of women or girls for a tenure of 2 years at a fixed interest rate of 7.5 per cent with a partial withdrawal option.

8. Kisan Vikas Patra

• Minimum Rs 1000 and thereafter in multiples of Rs 100.
• No maximum deposit limit.
• A single-holder type account may be opened by an adult for himself or on behalf of a minor.
• A single-holder type account may also be opened by a minor on attaining the age of 10 years.
• Joint ‘A’ Type accounts may be opened by up to three adults payable to both the holders jointly or to the survivor.
• Joint ‘B’ Type accounts may be opened by up to three adults payable to either of the survivor.
• Accounts can be opened in post offices and authorised banks.
• Kisan Vikas Patra can be transferred from one person to another and from one post office to another.
• Kisan Vikas Patra can be encashed after 2 and half years from the date of investment at the following rates.
• Money doubles on maturity.
• Interest rate: 7.5 % (115 months maturity)

9. Recurring Deposit Account Scheme

• In this scheme, a minimum of Rs 100 per month can be deposited with no maximum limit fixed.
• Advance deposits can be made at the option of the depositor for 6 months or 12 months and earn a rebate.
• The scheme account matures in 5 years. Withdrawal to the extent 50% of the amount of the existing balance is permissible after one year of the opening of the account.
• The account can be closed prematurely after 3 years with simple interest at the rate of a Post Office Savings Account (POSA).
• Currently, the rate of interest is 6.7% on 5 years RD

10. Post Office Saving Account

• In this scheme, a minimum deposit of Rs 500 is required and there is no maximum deposit limit.
• A person can open the account in his name individually or jointly with an adult person. The account can be opened on behalf of a minor.
• Also, a minor who has attained the age of 10 years may open the account independently.
• Interest in the account up to Rs 10,000 qualifies for deduction from Income in a financial year under the Income Tax Act.
• The scheme is offering an interest rate of 4 percent.

Last Rate Revision

The central government had raised the rate of interest on two small savings schemes for January-March 2024 by 10-20 basis points, making it the sixth quarter in a row that rates on these instruments have been increased.