Interest Rate: The government updates the interest rates for Small Saving Schemes every three months. So far, they’ve set the rates for the period from January 1, 2025, to March 31, 2025. Next up, they’ll determine the rates for the quarter running from April 1, 2025, to June 30, 2025, with the new financial year kicking off on April 1. There’s a chance the government will announce the new rates before March 31.
Investors in Small Saving Schemes are hoping for better interest rates this time around. Some popular options among the public include the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS), and National Savings Certificate (NSC). Here’s a rundown of the current interest rates for these schemes.
Interest rates for small savings schemes for the January-March 2025 quarter:
Savings Deposit: 4%
1-Year Post Office Time Deposit: 6.9%
2-Year Post Office Time Deposit: 7.0%
3-Year Post Office Time Deposit: 7.1%
5-Year Post Office Time Deposit: 7.5%
5-Year Recurring Deposit: 6.7%
National Savings Certificate (NSC): 7.7%
Kisan Vikas Patra (KVP): 7.5% (Maturity in 115 months)
Public Provident Fund (PPF): 7.1%
Sukanya Samriddhi Yojana (SSY): 8.2%
Senior Citizen Savings Scheme: 8.2%
Monthly Income Scheme: 7.4%
Bank and Post Office Interest Rates
Post offices provide fixed deposit interest rates ranging from 6.9% to 7.1% for terms of 1 to 3 years, while banks offer rates between 6.5% and 8.05%. Senior citizens can enjoy higher interest rates. Bandhan Bank currently offers the highest rate at 8.05%. However, following the RBI’s cut in the repo rate, many banks have lowered their FD interest rates. The government also runs small savings schemes designed to promote regular saving among citizens, which are categorized into three types: savings deposits, social security schemes, and monthly income plans.