In a recent announcement, the Centre has decided to maintain the current interest rates on post office savings schemes for the period from April to June 2025. This decision was confirmed through a circular issued by the Department of Economic Affairs under the Ministry of Finance on 28th March 2025. This decision affects a range of savings instruments, including the Public Provident Fund (PPF), Senior Citizen Savings Scheme and the Sukanya Samriddhi Account, National Savings Certificate (NSC), among others.
As per the circular, "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."
The interest rate for the Public Provident Fund Scheme will remain at 7.1%, while the National Savings Certificate will continue to offer 7.7%. Other schemes, such as the Senior Citizen Savings Scheme and the Sukanya Samriddhi Account, will maintain interest rates of 8.2% each. The rates for various time deposits range from 6.9% for a one-year deposit to 7.5% for a five-year deposit.
| Post Office Savings Account | 4% |
| Post Office Recurring Deposit | 6.7% |
| Post Office Monthly Income Scheme | 7.4% |
| 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% |
| Kisan Vikas Patra (KVP) | 7.5% |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana | 8.2% |
| National Savings Certificate | 7.7% |
| Senior Citizens’ Saving Scheme (SCSS) | 8.2% |
These rates remain competitive, offering a viable saving option for investors seeking stable returns in a fluctuating economic environment.
Interest rates for these small savings schemes are reviewed quarterly by the government, based on the recommendations of the Shyamala Gopinath Committee. The committee has suggested that these rates be set within a range of 25 to 100 basis points above the yields of government bonds with corresponding maturities. This methodology ensures that small savings schemes remain attractive compared to other investment avenues, especially in periods of economic uncertainty.
The last change in interest rates for these schemes occurred during the last quarter of FY 2023-24, when the government increased the interest rates for three-year time deposits and the Sukanya Samriddhi Yojana. Since then, there have been no further adjustments to these rates. The decision to keep rates steady reflects the government's stance on providing consistent returns amidst current market conditions, thus encouraging more people to invest in these schemes.
These small savings schemes continue to play a significant role in India’s economy by offering stable investment opportunities to the general public. As the government upholds these rates for the upcoming quarter, these schemes stand as a reliable option for investors, especially senior citizens and long-term savers, seeking security in their investments.