Small Savings Schemes Interest Rates: Recently, the government announced new interest rates for Small Savings Schemes. The interest rates for the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Kisan Vikas Patra (KVP), National Savings Certificate (NSC), and other small savings schemes will remain the same for the quarter from January 2025 to March 2025. This marks the fourth consecutive time that the government has kept the interest rates unchanged. If you are considering investing in schemes like PPF, KVP, SSY, or NSC, this news could be very useful for you.
How Much Will You Earn in Each Scheme?
As mentioned earlier, the interest rates for all small savings schemes, including PPF, KVP, and NSC, remain unchanged. If you invest in the PPF scheme between January 2025 and March 2025, you will earn an interest of 7.1% per annum. For Sukanya Samriddhi Yojana, the interest rate will be 8.2% per annum, and for Kisan Vikas Patra, it will be 7.5% per annum. The Post Office Savings Account offers 4% per annum, while the National Savings Certificate (NSC) provides 7.7% per annum. The Post Office Monthly Income Scheme (POMIS) offers 7.4% per annum, and savings schemes for senior citizens will earn 8.2% per annum.
Earnings from Post Office Time Deposit Schemes
The Finance Ministry has also shared the new interest rates for Post Office Time Deposit schemes. Starting January 2025, the interest rates are as follows:
- 6.9% per annum for the 1-year Post Office Time Deposit Scheme
- 7.0% per annum for the 2-year Post Office Time Deposit Scheme
- 7.1% per annum for the 3-year Post Office Time Deposit Scheme
- 6.7% per annum for the 5-year Post Office Recurring Deposit Scheme
Interest Rates on Small Savings Schemes – Current Quarter (January-March 2025)
- Savings Deposit: 4%
- 1-Year Post Office Time Deposits: 6.9%
- 2-Year Post Office Time Deposits: 7.0%
- 3-Year Post Office Time Deposits: 7.1%
- 5-Year Post Office Time Deposits: 7.5%
- 5-Year Recurring Deposits: 6.7%
- National Savings Certificate (NSC): 7.7%
- Kisan Vikas Patra: 7.5% (Maturity in 115 months)
- Public Provident Fund (PPF): 7.1%
- Sukanya Samriddhi Account: 8.2%
- Senior Citizens Savings Scheme: 8.2%
- Monthly Income Account: 7.4%
According to the government’s new interest policy, post office schemes are an excellent option for those seeking risk-free investments with good returns in a short period. Post Office Small Savings Schemes, including the Post Office Recurring Deposit (RD), are particularly popular.
In the Post Office RD scheme, you can accumulate up to ₹8 lakh by investing just ₹5,000 per month. A key feature of this scheme is the ease of obtaining loans, making it an attractive choice for individuals looking for both savings and financial flexibility.
In 2023, the government increased the interest rate on the Post Office Recurring Deposit Scheme, providing an interest rate of 6.7%. This rate is revised every quarter, while the benefits are provided annually.