The finance ministry on Friday kept the interest rates of small savings schemes unchanged for the first quarter (April-June) of the financial year 2024-25. The government generally announces the rates at the end of the month, but it declared them early this time. Meanwhile, Axis Bank and Ujjivan Small Finance Bank revised their FD rates in the week ending March 9, 2024.

Let’s explore the rate announcements in detail. 

Small Saving Schemes:

 Among the small saving schemes, Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) are the highest interest-paying schemes at 8.2 per cent annually.

The rates for other small savings schemes are 7.1 per cent for the three-year post office term deposit, 7.4 per cent for the post office monthly income scheme (POMIS), and 7.1 per cent for public provident fund (PPF). The interest rate for the National Savings Certificate (NSC) is 7.7 per cent, and Kisan Vikas Patra (KVP) is 7.5 per cent for the March and June quarters of 2024.

Also Read: Bonds Vs. Fixed Deposits: Where Should Senior Citizens Invest?

Axis Bank: 

The bank revised the FD rates on March 6, 2024, with the highest 7.85 per cent offered to senior citizens on FDs of less than Rs 2 crore. It offers 7.20 per cent interest for FDs of one year to less than 15 months and 7.60 per cent for FDs of 15 months to less than 17 months. For FDs of 17 months to less than 18 months, the highest rate is 7.85 per cent; for FDs of 18 months to less than five years, it is 7.60 per cent, and for five years to 10 years, it is 7.75 per cent.

Ujjivan Small Finance Bank:

This small finance bank revised its FD rates on March 7, 2024. It offers a maximum of 8.50 per cent for the general public and an additional 0.50 per cent for seniors, making it 9.00 per cent.

 Also Read: ICICI, Axis Among Four Banks Have Revised FD Rates, Seniors Can Earn Up To 8.60%

Other FD rates are 8.75 per cent for 12 months to less than 15 months, 9.00 per cent for 15 months, 8.75 per cent for 15 months one day to 560 days, and 8.00 per cent for 561 days to 989 days. Further, 8.25 per cent for 990 days, 7.70 per cent for 991 days to 60-month FDs and 7.00 per cent for 60 months one day to 120 months. Premature withdrawal is allowed on these FDs.