Small Saving Scheme: The government has fixed the interest rates of small savings scheme. There has been no change in the interest rates of small savings schemes from April to June 2025, the first quarter of the financial year 2025-26
PPF, SCSS, Small Saving Scheme: The government has fixed the interest rates of small savings scheme. There has been no change in the interest rates of small savings schemes from April to June 2025, the first quarter of the financial year 2025-26. These rates will be applicable from April 1 to June 30, 2025. This decision of the government will affect the interest of Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY) and other post office savings schemes.
Interest rate on small savings scheme
The government had fixed the interest on small savings scheme on 28 March 2025. According to the new circular issued by the government, 7.1% interest will be available on Public Provident Fund (PPF). 7.7% interest will be available on National Savings Certificate (NSC). Both Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) will continue to get 8.2% interest. Kisan Vikas Patra (KVP) will get 7.5% interest rate. This scheme matures in 115 months.
The government decides the interest rate on small savings schemes
The government decides the interest rate of small savings schemes every three months. The government had earlier increased the interest rates of some schemes in the January-March 2024 quarter. At that time, the interest on three-year FD scheme was increased from 7% to 7.1%. Also, the interest rate of Sukanya Samriddhi Yojana was increased from 8% to 8.2%. The government has not made any change in the interest rates since April 2024.
For whom are small savings schemes best?
The government fixes the interest rates for small savings scheme schemes as per the recommendations of the Shyamala Gopinath Committee. The interest rates of these schemes are kept 0.25% to 1% higher than the yield of government bonds so that they remain attractive to investors. These schemes are beneficial for those who want to keep their money safe without any risk.
Interest Rate on Small Savings Scheme
| Small Saving Scheme | interest rate |
| Post Office Savings Account | 4% |
| Post Office Recurring Deposit | 6.7% |
| Post Office Monthly Income Scheme | 7.4% |
| Post Office One 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 Scheme | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Senior Citizen Saving Scheme | 8.2% |
