Small Savings Schemes: Interest Rates Of PPF, SSY, KVP, Others Remain Unchanged For April-June Quarter
This marks the fifth consecutive quarter in which the government has chosen to keep the rates of small savings schemes unchanged.
The central government has decided to keep the interest rates on small savings schemes unchanged for the April-June 2025 quarter. These schemes, which include popular savings options such as the Public Provident Fund, Sukanya Samriddhi Yojana, National Savings Certificates, and others, will continue to offer the same rates as the previous quarter.
The decision marks the fifth consecutive quarter in which the government has chosen to keep the rates unchanged.
The government circular read, “The rates of interest on various Small Savings Schemes for the first quarter of FY 2025-26 starting from April 1, 2025 and ending on 30th June 2025, shall remain unchanged from those notified for the fourth quarter (1st January 2025 to 31st March 2025) of FY 2024-25.”
Interest rates for various small savings schemes for the April-June 2025 period:
National Savings Certificate (NSC): 7.7%
Public Provident Fund (PPF): 7.1%
Sukanya Samriddhi Yojana (SSY): 8.2%
Senior Citizens' Savings Scheme (SCSS): 8.2%
Post Office Savings Account: 4%
Post Office Recurring Deposit: 6.7%
Post Office Time Deposit (1 year): 6.9%
Post Office Time Deposit (2 years): 7%
Post Office Time Deposit (3 years): 7.1%
Post Office Time Deposit (5 years): 7.5%
Post Office Monthly Income Scheme: 7.4%
Kisan Vikas Patra (KVP): 7.5%
The government reviews the interest rates for small savings schemes quarterly, based on recommendations from the Shyamala Gopinath Committee. The committee has proposed setting these rates 25 to 100 basis points higher than the yields of government bonds with similar maturities, ensuring these schemes remain appealing, especially during economic uncertainty.
The last change in rates occurred in the last quarter of financial year 2023-24, when the government raised the rates for three-year time deposits and the Sukanya Samriddhi Yojana. Since then, the rates have remained unchanged.
How Are These Interest Rates Decided?
The government reviews and sets the interest rates on small savings schemes quarterly, taking into account the prevailing economic conditions and market trends. These schemes, which are primarily managed through post offices and banks, provide a reliable and secure savings option for many people across the country.
