The government will review the interest rates of all small savings schemes, including the Sukanya Samriddhi Yojana (SSY), by June 30, 2025.
The revised interest rates will come into effect from July 1, 2025, and will remain valid until September 30, 2025.
Currently, the Sukanya Samriddhi Yojana offers 8.2% annual interest, which has remained unchanged for a while.
However, there is a possibility that the government may lower this rate in the upcoming review.
Why the Interest Rate May Fall
One of the main reasons for the expected cut is the Reserve Bank of India’s (RBI) decision to reduce the repo rate by 1% since February 2025.
This move has already led most banks to decrease the interest rates on fixed deposits and savings accounts.
As a result, the government might also reduce interest rates on small savings schemes, including SSY.
While the final decision will be made on June 30, a slight reduction in the SSY interest rate is likely.
Current Interest Rates on Government Small Savings Schemes (April to June 2025)
Here are the current interest rates for various small savings schemes for the first quarter of FY 2025-26:
Post Office Savings Account – 4%
1-Year Fixed Deposit (Time Deposit) – 6.9%
2-Year FD – 7%
3-Year FD – 7.1%
5-Year FD – 7.5% (maximum among FDs)
5-Year Recurring Deposit – 6.7%
Senior Citizens Savings Scheme – 8.2%
Monthly Income Scheme – 7.4%
National Savings Certificate (NSC) – 7.7%
Public Provident Fund (PPF) – 7.1%
Sukanya Samriddhi Account – 8.2%
Kisan Vikas Patra – 7.5% (matures in 115 months)
The government will announce the revised interest rates for the July–September quarter on June 30, 2025.
People are especially watching closely to see if there will be any changes in PPF rates, with some speculation around a possible new rate of 6.5%.
