PPF & TD Schemes 2025: These Post Office Schemes Offer Better Returns in 2025

If you are also one of those investors who depend more on bank fixed deposits (FD), then this news is very useful for you. Due to the reduction in repo rate by the Reserve Bank of India (RBI), most of the banks have reduced the interest rates of FD. In such a situation, getting good returns along with a safe investment has become a big challenge, especially for senior citizens. If you are also looking for a safe investment option instead of an FD, which gives good returns, then you can take a look at the schemes of the post office.

Public Provident Fund

You can open a Public Provident Fund (PPF) account in the name of both you and your spouse at the post office. This will give you separate interest on both accounts; that is, you can get double the benefit. A person can deposit a maximum of ₹ 1.5 lakh in their PPF account in a financial year. Also, he can deposit up to ₹ 1.5 lakh in his wife’s account as well. Both accounts will get interest separately and independently. PPF currently offers a handsome 7.1% interest rate, which is much better than bank FDs.

Time Deposit

You can also get the same benefits as FDs by investing in the Post Office Time Deposit (TD) scheme. TD works just like a fixed deposit — a lump sum is deposited for a fixed period and a fixed return is received on maturity. Despite the repo rate cut by the RBI, the post office is still offering attractive interest rates compared to banks. Since the post office comes directly under the control of the central government, the investment made here is completely safe. Every deposit of yours is guaranteed by the government.

Current Interest Rates on Post Office Time Deposit

The government changes the interest rates of small savings schemes every three months. Currently, the rates offered on Post Office TD are as follows.

1 Year 6.90% Interest Rate

2 Years 7.00% Interest Rate

3 Years 7.10% Interest Rate

5 Years 7.50% Interest Rate

Example:– If you invest ₹2 lakh in a 2-year time deposit (at an interest rate of 7.0%), you will get ₹2,29,776 on maturity. That is, you will get a fixed interest of ₹29,776.

If you want to keep your money safe and want to get higher returns than a bank FD, then these two schemes of the Post Office can prove to be the best option for you.