Small savings scheme: The Indian government has kept the interest rates on small savings schemes like PPF and NSC unchanged for the April to June quarter of the financial year 2025-26, according to the Department of Economic Affairs (DEA) notification on Friday, March 28.
“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 2024-25,” said DEA in the official announcement.
Interest Rates
According to Mint’s earlier report, the interest rates for the Public Provident Fund (PPF) and post office savings deposit schemes have remained unchanged at 7.1 per cent and 4 per cent, respectively.
People who are interested in investing in safe assets like PPFs, usually do so due to the tax benefits and long-term savings potential of the asset class.
Meanwhile, the deposits under the Sukanya Samriddhi scheme have an interest rate of 8.2 per cent, and the rate on the three-year deposit will be retained at 7.1 per cent for the first quarter of the financial year 2025-26, reported the news agency.
As per the earlier report, the Senior Citizen Savings Scheme (SCSS) has an interest rate of 8.2 per cent. A scheme which is designed to provide financial security to senior citizens as it offers higher returns compared to other savings options.
Other key interest rates, like the five-year recurring Deposit (RD) scheme, offers an interest rate of 6.7 per cent which is kept unchanged for the upcoming April to June quarter of the financial year 2025-26.
The Indian government decides and announces the interest rates on small savings schemes, which are mainly operated by post offices and banks, every quarter in a financial year.
The Indian government kept the interest rates unchanged for the January to March quarter in the financial year 2024-25.
“The rates of interest on various small savings schemes for the fourth quarter of FY 2024-25, starting from January 1, 2025, and ending on March 31, 2025, shall remain unchanged from those notified for the third quarter (October 1, 2024, to December 31, 2024) of FY 2024-25,” said the finance ministry, as per Mint’s earlier report.
Disclaimer: This is an educational article and should not be considered an investment strategy. We advise investors to check with certified experts before making any investment decisions.