The government has announced no change in interest rates for small savings schemes. The newly announced rates will be applicable for the April and June quarters of FY 2025-26. According to the circular, starting April 1, 2025, small savings schemes will earn interest at the following rates: Public Provident Fund (PPF) at 7.1%, National Savings Certificate at 7.7%, Senior Citizen Savings Scheme (SCSS) at 8.2%, and Sukanya Samriddhi Yojana (SSY) at 8.2%.Small savings schemes are also known as post office schemes.
According to the circular released, “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 Department of Economic Affairs, Finance Ministry, issued a circular regarding this on March 28, 2025
Post Office Scheme interest rates between April 1, 2025, and June 30, 2025
Here are the interest rates offered on small savings schemes.
| Instrument | Rate of interest from April to June 2025 (%) |
| Savings Deposit | 4 |
| 1-Year Time Deposit | 6.9 |
| 2-Year Time Deposit | 7 |
| 3-Year Time Deposit | 7.1 |
| 5-Year Time Deposit | 7.5 |
| 5-Year Recurring Deposit | 6.7 |
| Senior Citizen Savings Scheme | 8.2 |
| Monthly Income Account Scheme | 7.4 |
| National Savings Certificate | 7.7 |
| Public Provident Fund Scheme | 7.1 |
| Kisan Vikas Patra | 7.5 (Will mature in 115 months) |
| Sukanya Samriddhi Account | 8.2 |
Source: Ministry of Finance circular
When was the last time the interest rates for small savings schemes changed?
The interest rates for post office schemes were last changed in the last quarter of FY 2023-24, i.e., between January and March 2024. At that time, the government hiked the interest rates for 3-year time deposits and the Sukanya Samriddhi Yojana (SSY). The interest rate for the 3-year time deposit was hiked from 7% to 7.1%, and for the Sukanya Samriddhi Yojana (SSY), it was hiked from 8% to 8.2%. The interest rates for the rest of the schemes were kept unchanged.However, since April 2024, there has been no change in the interest rates for small savings schemes.
How interest rates are set for small savings schemes
The central government is required to review and set interest rates for small savings schemes on a quarterly basis. Interest rates on post office schemes are determined based on the methodology suggested by the Shyamala Gopinath Committee.
According to the committee’s recommendations, the interest rates for different small savings schemes should be set within a range of 25 to 100 basis points (100 basis points = 1%) above the yields of government bonds with corresponding maturities. This approach is designed to keep the interest rates of small savings schemes competitive and appealing to investors.
