RBI: The government has revealed the interest rates for small savings schemes, which will be effective for the period from April to June 2025. A positive aspect for investors is that, despite the Reserve Bank of India’s (RBI) reduction in policy interest rates, the government has maintained the interest rates for small savings schemes. This means that well-known schemes such as the Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), and other post office small savings schemes will continue to offer the same interest rates as those provided during the January-March 2025 quarter.

The government evaluates the interest rates for small savings schemes on a quarterly basis and makes adjustments as necessary. This determination of interest rates is guided by the recommendations of the Shyamala Gopinath Committee, established by the Reserve Bank of India (RBI). 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 government bonds.

No changes to the interest rates

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.

According to the government’s circular, the interest rates for all small savings schemes from April 1, 2025, to June 30, 2025, are as follows:

– Public Provident Fund (PPF): 7.1%

– National Savings Certificate (NSC): 7.7%

– Senior Citizen Savings Scheme (SCSS): 8.2%

– Sukanya Samriddhi Yojana (SSY): 8.2%

– 1-Year Time Deposit: 6.9%

– 2-Year Time Deposit: 7%

– 3-Year Time Deposit: 7.1%

– 5-Year Time Deposit: 7.5%

– 5-Year Recurring Deposit: 6.7%

– Monthly Income Account Scheme: 7.4%

– Kisan Vikas Patra (KVP): 7.5% (maturity in 115 months)

– Savings Deposit: 4%