Your daughter can earn more interest now!

The government has reset interest rates on some of the small saving instruments for January-March 2024 quarter. Interest rates on Sukanya Samriddhi scheme have been raised by 20 basis points and three-year term deposit scheme by 10 basis points. There has been no change in the rates for other small saving schemes like Kisan Vikas Patra, Public Provident Fund, senior citizens saving scheme etc.

The government revises interest for every quarter. The rates are based on the 10-year government bond yield.

According to a finance ministry circular, the deposit under Sukanya Samriddhi scheme would attract an interest rate of 8.2 per cent from the existing 8 per cent, while the 3-year term deposit would become 7.1 per cent from the current 7 per cent.

The rates are same for other schemes as during the December quarter.
The interest rate on the Kisan Vikas Patra is 7.5 per cent and the investments will mature in 115 months.
The interest rate on the National Savings Certificate (NSC) remained unchanged at 7.7 per cent for January 1 to March 31, 2024, period.

There is no increase in interest rate for the Monthly Income Scheme, and this will earn 7.4 per cent for the investors.
The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter.
The Reserve Bank since May 2022 has raised the benchmark lending rate by 2.5 per cent to 6.5 per cent, prompting banks to raise interest rates on deposits as well.

However, the RBI has maintained the status quo on policy rate in the last five consecutive Monetary Policy Committee meetings since February this year.