The government has set the interest rates for small saving schemes, and these rates will remain unchanged from April 1 to June 30, 2025.
This decision affects various schemes such as the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and other post office savings schemes.
Interest Rates for April-June 2025
The government announced the fixed interest rates on small savings schemes on March 28, 2025. The following interest rates will apply:
PPF: 7.1%
NSC: 7.7%
SCSS & SSY: 8.2%
Kisan Vikas Patra (KVP): 7.5% (matures in 115 months)
These rates will be effective from April 1 until June 30, 2025.
How the Government Sets Interest Rates
The government reviews and sets the interest rates for small savings schemes every quarter.
Earlier, in the January-March 2024 quarter, the government had raised the interest rate on the three-year FD scheme from 7% to 7.1% and increased the Sukanya Samriddhi Yojana rate from 8% to 8.2%. Since then, there has been no change in the rates.
Why Are Small Savings Schemes Popular?
Small savings schemes are designed for those looking to secure their money with little to no risk.
The interest rates are set based on recommendations from the Shyamala Gopinath Committee and are typically 0.25% to 1% higher than government bond yields.
This makes them attractive to conservative investors seeking safety and steady returns.
Interest Rates on Various Small Saving Schemes
Post Office Savings Account: 4%
Post Office Recurring Deposit: 6.7%
Post Office Monthly Income Scheme: 7.4%
Post Office One Year FD: 6.9%
Post Office 2 Year FD: 7%
Post Office 3 Year FD: 7.1%
Post Office 5 Year FD: 7.5%
Kisan Vikas Patra (KVP): 7.5%
PPF: 7.1%
SSY: 8.2%
NSC: 7.7%
SCSS: 8.2%
These rates apply for the first quarter of the 2025-26 financial year.
