New Interest Rates Implemented for PPF, SCSS, Sukanya Samriddhi Yojana, and Post Office Schemes
The government has officially set the interest rates for various small savings schemes for the first quarter of the financial year 2025-26. The rates will remain unchanged from the previous quarter, effective from April 1 to June 30, 2025. These fixed rates apply to Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), and various other post office savings plans.
On March 28, 2025, the government finalized the interest rates for small savings schemes. As per the latest notification, the interest rates for different schemes are as follows:
Public Provident Fund (PPF) – 7.1%
National Savings Certificate (NSC) – 7.7%
Senior Citizen Savings Scheme (SCSS) – 8.2%
Sukanya Samriddhi Yojana (SSY) – 8.2%
Kisan Vikas Patra (KVP) – 7.5% (maturity period: 115 months)
The government revises the interest rates of small savings schemes every quarter. The last revision was made in January-March 2024, where some rates were increased. The three-year Fixed Deposit (FD) rate was raised from 7% to 7.1%, and the interest on the Sukanya Samriddhi Yojana was increased from 8% to 8.2%. Since April 2024, the government has maintained the same interest rates without any changes.
Small savings schemes are ideal for risk-averse investors seeking secure and stable returns. These schemes are designed to offer returns higher than government bonds, ranging from 0.25% to 1% above their yield, ensuring they remain attractive to the general public. The interest rates are recommended based on the guidelines of the Shyamala Gopinath Committee.
| Scheme | Interest Rate |
|---|---|
| Post Office Savings Account | 4% |
| Post Office Recurring Deposit | 6.7% |
| Post Office Monthly Income Scheme | 7.4% |
| Post Office 1-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% |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Senior Citizen Savings Scheme (SCSS) | 8.2% |
These fixed interest rates provide stability and security to investors, ensuring that small savings schemes remain a reliable option for long-term financial planning. The government’s decision to maintain consistent rates will benefit millions of depositors across the country.
