The government has not made any changes in interest rates on all small saving schemes including PPF and NSC for the April-June quarter of FY 2025-26. This is the fifth consecutive quarter when there has been no change in interest rate on small savings schemes. The Finance Ministry said in a notification that there has been no change in the interest rates of small saving schemes in the quarter ending April 1, 2025, starting from April 1, 2025. Let us also tell you what kind of announcement has been made by the government on small savings schemes…
According to the notification, under the Sukanya Samriddhi Yojana, the interest rate of 8.2 percent will be available on the deposit, while the rate on three years fixed deposit will remain at 7.1 percent in the current quarter. Interest rates of popular Public Provident Fund (PPF) and Post Post Office Savings Deposit Schemes have also been retained at 7.1 percent and four percent respectively for the next quarter. The interest rate on the farmer development letter will be 7.5 percent as before and this investment will mature in 115 months. The interest rate on National Savings Certificate (NSC) will remain at 7.7 percent for the period of April-June 2025.
| Small saving scheme | Interest rate (percent) from April to June 2025 |
| Saving deposit | 4 |
| 1 year FD | 6.9 |
| 2 year FD | 7 |
| 3 year FD | 7.1 |
| 5 year FD | 7.5 |
| 5 year FD | 6.7 |
| Senior Citizen Saving Scheme | 8.2 |
| Monthly income saving account | 7.4 |
| Public provident fund | 7.1 |
| National saving certificate | 7.7 |
| Farmer development letter | 7.5 (will mature in 115 months) |
| Sukanya Samriddhi Account | 8.2 |
Source: Finance Ministry Circular
Like the current quarter, the monthly income scheme will earn 7.4 percent for investors. Along with this, interest rates on small savings schemes run by post offices and banks have been left unchanged for the fifth consecutive quarter. The government last changed interest rates in some schemes for the fourth quarter of 2023-24. The government issues notification of interest rates on small savings schemes every quarter.
The interest rates of the small savings scheme were last changed between the last quarter of FY 2023-24 i.e. January to March 2024. At that time the government had increased the interest rates of 3 years FD and Sukanya Samriddhi Yojana. The interest rate for 3 years FD was increased from 7 percent to 7.1 percent, and for Sukanya Samriddhi Yojana (SSY) it was increased from 8% to 8.2 percent. There was no change in the interest rates of the remaining schemes. However, there has been no change in the interest rates of small savings schemes since April 2024.
The central government has to review and determine the interest rates of small savings schemes on a quarterly basis. Based on the method suggested by the Shyamala Gopinath Committee, interest rates are determined on post office plans. According to the recommendations of the committee, interest rates for small saving schemes should be 25 to 100 basis points (100 basis marks = 1 per cent) more than the concerned maturity period.
