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For the first quarter of the fiscal year 2025–26, which runs from April to June 2025, the Centre has declared that interest rates for post office small savings plans will not change.
The Public Provident Fund Scheme interest rate will continue to be 7.1 per cent. (Representative Image)
The Centre has announced that it would keep the interest rates on post office savings schemes at their existing levels for the April–June 2025 period. On March 28, this year, the Department of Economic Affairs within the Ministry of Finance (MoF) released a circular confirming this decision. Public Provident Fund (PPF), Senior Citizen Savings Scheme, Sukanya Samriddhi Account, National Savings Certificate (NSC), and other savings instruments are all impacted by this decision.
“The rates of interest on various Small Savings Schemes for the first quarter of FY 2025-26 starting from April 1, 2025, and ending on 30th June 2025, shall remain unchanged from those notified for the fourth quarter (1st January 2025 to 31st March 2025) of FY 2024-25,” according to the circular.
While the National Savings Certificate will continue to give an interest rate of 7.7 per cent, the Public Provident Fund Scheme will continue to offer an interest rate of 7.1 per cent. Interest rates on other programs, such as the Sukanya Samriddhi Account and the Senior Citizen Savings Scheme, will remain at 8.2 per cent apiece. Rates for different time deposits vary from 7.5 per cent for a five-year deposit to 6.9 per cent for a one-year deposit.
Savings Schemes Interest Rates for April-June 2025
– National Savings Certificate: 7.7 per cent
– Public Provident Fund (PPF): 7.1 per cent
– Sukanya Samriddhi Yojana: 8.2 per cent
– Senior Citizens’ Saving Scheme (SCSS): 8.2 per cent
– Post Office Savings Account: 4 per cent
– Post Office Recurring Deposit: 6.7 per cent
– Post Office Time Deposit (2 years): 7 per cent
– Post Office Time Deposit (3 years): 7.1 per cent
– Post Office Monthly Income Scheme: 7.4 per cent
– Post Office Time Deposit (1 year): 6.9 per cent
– Post Office Time Deposit (5 years): 7.5 per cent
– Kisan Vikas Patra (KVP): 7.5 per cent
It is important to note that these rates are still reasonable and provide a good way for investors looking for steady earnings in a volatile economy to save money.
The government reviews interest rates for these small savings schemes every three months, taking into account the Shyamala Gopinath Committee’s recommendations. These rates should be set between 25 and 100 basis points higher than the yields on government bonds with comparable maturities, according to the committee’s recommendation. This approach guarantees that, particularly during difficult economic times, small savings plans continue to be appealing when compared to alternative investment options.
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