The government has announced the interest rates on various small savings schemes for the April-June 2025 quarter. In a circular released earlier today on March 28, 2025, the Department of Economic Affairs (Budget Division) under the Ministry of Finance noted “The rates of interest on various small savings schemes for the first quarter of FY 2025-26 starting from 1st April, 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 2024-2025”.
The circular means that the interest rates on popular schemes such as Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana (SSY), and savings accounts and other 1/2/3/5 year time deposit schemes will remain the same.
The small savings schemes are the post office schemes and are government-backed and regulated by the Ministry of Finance of India, aimed to encourage individuals and small investors to save regularly while earning fixed and secure returns.
There are a total of 12 small savings schemes, categorized into mainly 3 types i.e., Postal savings schemes such as Post office savings account, Post Office Recurring Deposit, Post Office MIS, Long-term savings & Pension related schemes such as PPF, NSC, SCSS, SSY, KVP, and fixed deposit schemes such as 1-year, 2-year, 3-year and 5-year post office time deposit schemes. The investors usually opt for these schemes due to their tax benefits and safety factor.
The interest rates are- 7.1% for PPF, 7.7% for NSC, 8.2% for SCSS, 7.5% for KVP, 8.2% for SSY, 7.4 for Post Office MIS, 4% for Post office savings account, 6.7% for Post office recurring deposit, and 6.9%, 7.0%, 7.1% and 7.5% respectively for 1 year, 2 year, 3 year and 5 year time deposit schemes.
Small Savings Scheme Interest Rates for April–June 2025
Here is the updated list of interest rates for various small savings schemes for the April-June 2025 quarter of FY2025-26:
| Scheme | Interest Rate (Jan–Mar 2025) | Revised Interest Rate (Apr–Jun 2025) | Change |
|---|---|---|---|
| Public Provident Fund (PPF) | 7.1% | 7.1% | No change |
| National Savings Certificate (NSC) | 7.7% | 7.7% | No change |
| Senior Citizens Savings Scheme (SCSS) | 8.2% | 8.2% | No change |
| Kisan Vikas Patra (KVP) | 7.5% (matures in 115 months) | 7.5% (matures in 115 months) | No change |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | 8.2% | No change |
| Post Office Recurring Deposit (5 years) | 6.7% | 6.7% | No change |
| Post Office Monthly Income Scheme (MIS) | 7.4% | 7.4% | No change |
| Post Office Savings Account | 4.0% | 4.0% | No change |
| 1-Year Time Deposit | 6.9% | 6.9% | No change |
| 2-Year Time Deposit | 7.0% | 7.0% | No change |
| 3-Year Time Deposit | 7.1% | 7.1% | No change |
| 5-Year Time Deposit | 7.5% | 7.5% | No change |
Note: The interest rates are revised each quarter government website- www.dea.gov.in .
The interest rates for the small savings schemes have remain unchanged for over five quarters now. The rates were changed last time in January-March 2024 when the government had hiked the interest rates only for Sukanya Samriddhi Yojana from 8% to 8.2% and for 3-year time deposits from 7% to 7.1%.