New Delhi, Jun 29 (KNN) The Union Finance Ministry announced on Friday that interest rates for small savings schemes will remain unchanged for the July-September quarter, maintaining the levels set for the previous quarter.

This marks the third consecutive quarter without adjustments to these rates. The last revision occurred in December when rates were set for the January-March quarter of FY24.

Currently, the highest interest rate of 8.2 per cent applies to both the Sukanya Samriddhi account scheme and the senior citizen savings scheme.

The Sukanya Samriddhi scheme, a government-backed initiative, aims to assist parents in building a corpus for their daughters' education.

Other schemes offer varying rates. The National Savings Certificate provides a 7.7 per cent interest rate, while both the Kisan Vikas Patra and five-year time deposit offer 7.5 per cent.

Time deposits ranging from one to five years earn interest at rates between 6.9 per cent and 7.5 per cent.

Small savings schemes are popular among the general public, offering convenient and low-risk investment options.

Several of these instruments, including the National Savings Certificate, Senior Citizen Savings scheme, and Sukanya Samriddhi Yojana, qualify for income tax benefits under section 80C of the Income Tax Act.

This provision allows for a deduction of up to per cent 1.5 lakh per annum when calculating taxable income.

The stability in interest rates for these schemes may impact millions of small investors across India who rely on these instruments for their savings and financial planning.

(KNN Bureau)