The central government is set to review the interest rates of all small savings schemes, including the Sukanya Samriddhi Yojana (SSY), by June 30, 2025. The new rates will come into effect from July 1, 2025, and will remain valid till September 30, 2025.
Currently, the SSY offers an annual interest of 8.2%, which has stayed steady for the past few quarters. However, there is now a possibility that the interest rate may be reduced.
Why the Interest Rate Might Be Reduced
The main reason for this expected cut is the RBI’s reduction in the repo rate by 1% since February 2025.
As a result, most banks in the country have already reduced their interest rates on fixed deposits and savings accounts.
With this trend, the government may also decide to lower interest rates on small savings schemes, including Sukanya Samriddhi Yojana.
Although the final call will be made on June 30, there is a strong chance of a slight rate cut.
Current Interest Rates on Small Savings Schemes (April–June 2025)
Here are the interest rates being offered on various government-backed savings schemes for the first quarter of the financial year 2025–26:
Post Office Savings Account: 4%
1-Year Fixed Deposit (FD): 6.9%
2-Year FD: 7%
3-Year FD: 7.1%
5-Year FD: 7.5%
5-Year Recurring Deposit: 6.7%
Senior Citizens Savings Scheme (SCSS): 8.2%
Monthly Income Scheme (MIS): 7.4%
National Savings Certificate (NSC): 7.7%
Public Provident Fund (PPF): 7.1%
Sukanya Samriddhi Yojana (SSY): 8.2%
Kisan Vikas Patra (KVP): 7.5% (matures in 115 months)
What to Expect Next
The government will announce the revised interest rates for the July–September 2025 quarter on June 30, 2025.
It remains to be seen whether the rates will stay the same or be adjusted in line with recent banking trends.
All eyes are on the announcement, especially for schemes like SSY that are popular among investors for their higher returns and long-term security.
