The government has not changed the interest rates on all small savings schemes including PPF and NSC for the April-June quarter of the financial year 2025-26. This is the fifth consecutive quarter when there has been no change in the 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 savings schemes in the quarter starting from April 1, 2025, and ending on June 30, 2025. Let us also tell you what kind of announcement has been made by the government on small savings schemes…

This much interest will be available on small savings schemes.

According to the notification, an interest rate of 8.2 percent will be available on deposits under Sukanya Samriddhi Yojana, while the rate on three-year fixed deposits will remain at 7.1 percent in the current quarter. The interest rates of the 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 Kisan Vikas Patra will remain at 7.5 per cent as before and this investment will mature in 115 months. The interest rate on the National Savings Certificate (NSC) will remain at 7.7 percent for the period April-June 2025.

Small Saving Scheme Interest Rate from April to June 2025 (in percent)
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
Kisan Vikas Patra 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. With this, the 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 the interest rates in some schemes for the fourth quarter of 2023-24. The government issues a notification of interest rates on small savings schemes every quarter.

When was the last change?

The interest rates of the Small Savings Scheme were last changed in the last quarter of the financial year 2023-24 i.e. between January to March 2024. At that time, the government had increased the interest rates of 3-year FD and Sukanya Samriddhi Yojana. The interest rate for 3-year FD was increased from 7 percent to 7.1 per cent, 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 rest of the schemes. However, there has been no change in the interest rates of small savings schemes since April 2024.

How are interest rates of small savings schemes determined?

The central government has to review and determine the interest rates of small savings schemes every quarter. Interest rates on post office schemes are determined based on the methodology suggested by the Shyamala Gopinath Committee. As per the recommendations of the committee, interest rates for small savings schemes should be 25 to 100 basis points (100 basis points = 1 per cent) higher than the yield of government bonds of the corresponding maturity period.

PC Social media