PPF, Sukanya Samriddhi, SCSS: Centre keeps interest rates for small savings schemes unchanged for Jan-March 2025

The Central government has kept interest rates on various small savings schemes unchanged for the fourth consecutive quarter, starting January 1, 2025.

A finance ministry notification confirmed that the rates for the January- March 2025 period will remain the same as those for the previous quarter. Deposits under the Sukanya Samriddhi scheme will continue to earn 8.2% interest.

The three-year term deposit rate stays at 7.1%. Public Provident Fund (PPF) holders will receive 7.1%, and post office savings deposit accounts will earn 4%.

The Kisan Vikas Patra interest rate remains at 7.5%, with investments maturing in 115 months. National Savings Certificate (NSC) will offer 7.7%, while the Monthly Income Scheme continues at 7.4%.

Interest rates for small savings schemes have remained unchanged over the past three quarters. The government made its most recent adjustment to rates in the fourth quarter of the prior financial year.

The interest rates for the January-March quarter are as follows:
Savings Scheme    Interest rate
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%

The government decreased rates on small savings schemes in April 2020 by 0.5% to 1.4% on various instruments, reducing the return on Public Provident Fund (PPF) savings from 7.9% to 7.1%. While the PPF rate has not changed since then, the Centre started increasing rates on other small savings instruments from October 2022.