Interest Rate: The government has decided to keep the interest rates unchanged for various small savings schemes, such as PPF and NSC, for the first quarter (April 1 to June 30) of the financial year 2025-26. This marks the fifth straight quarter without any adjustments to the rates. According to the recent announcement, the Sukanya Samriddhi Yojana will continue to offer an interest rate of 8.2 percent on deposits.
For post office savings, the interest rate remains the same as well. The three-year fixed deposit rate will stay at 7.1 percent, just like in the current quarter. The popular Public Provident Fund (PPF) and post office savings deposit schemes will also maintain their rates at 7.1 percent and 4 percent, respectively.
What will be the interest rate for Kisan Vikas Patra and National Savings Certificate
Kisan Vikas Patra will offer an interest rate of 7.5 percent, with investments maturing in 115 months. The National Savings Certificate (NSC) will keep its interest rate at 7.7 percent for the April-June 2025 period. Similarly, the interest rate for Monthly Income Scheme investors will remain steady at 7.4 percent. The last time the government adjusted the interest rates for some schemes was in the fourth quarter of 2023-24. The government reviews and announces interest rates for small savings schemes every quarter.
From a latest development we already know that…
The Department of Economic Affairs, under the Ministry of Finance, issued a circular on March 28, 2025, confirming that there will be no changes to the interest rates for the first quarter (April-June 2025) of the financial year 2025-26. These rates will remain consistent with those applied in the previous quarter. The committee suggests that the interest rates for small savings schemes should be aligned with the yields of government-issued bonds. To ensure these schemes remain appealing to investors, the rates are set 25 to 100 basis points (where 100 basis points equals 1%) above the yield of governmentbonds.