- By Aditya Pratap Singh
- Tue, 01 Apr 2025 02:56 PM (IST)
- Source:JND
Small Saving Scheme Interest Rate: For the first quarter of the fiscal year 2025–2026 (April–June), the union government has declared that it will maintain the interest rates of small savings plans. This quarter, the fixed rates for the schemes will continue to be the same as last quarter. The Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), and other post office savings plans are among the savings schemes that are impacted by this decision.
Interest rates for small savings scheme
The government issued an official circular on March 28, 2025, confirming the interest rates for small savings plans. The National Savings Certificate (NSC) will continue to offer 7.7% annually, while the Public Provident Fund (PPF) will continue to offer 7.1% annually. Sukanya Samriddhi Yojana (SSY) and the Senior Citizen Savings Scheme (SCSS) will both provide 8.2% annually. The Kisan Vikas Patra (KVP) will mature in 115 months and yield an annual return of 7.5%.
Government reviews interest rates every quarter
Every quarter, the government reviews and sets the interest rates for small savings plans. The government previously raised the three-year fixed deposit (FD) rate from 7% to 7.1% and the SSY interest rate from 8% to 8.2% during the January–March 2024 quarter. However, nothing more has changed since April 2024.
For whom are small savings plans appropriate?
The Shyamala Gopinath Committee's recommendations are used by the government to set the interest rates for these programs. Interest rates on these instruments are typically between 0.25% and 1% higher than yields on government bonds in order to maintain their appeal. For risk-averse investors who value security and steady returns for their money, small savings plans are especially well-suited.
The small saving schemes provide a safe investment choice for people wishing to protect their money while generating consistent returns, especially since interest rates have remained constant.
Current Interest Rate On Small Saving Scheme
Post Office Saving Account- 4 Per cent
Post Office Reccuring Deposit - 6.7%
Post Office Monthly Income Scheme- 7.4%
Kisan Vikas patra -7.5%
Public Provident Fund (PPF) - 7.1%
Sukanya Samridhhi Scheme - 8.2%
National Saving Certificate - 7.7%
Senior Citizen Saving Scheme- 8.2%
