The Finance Ministry has announced that interest rates on small savings schemes will remain unchanged for the April-June quarter of FY 2025-26. This decision comes as part of the government's policy to maintain stability in savings instruments widely used by Indian households.

As per the official notification, the rates applicable from April 1, 2025, to June 30, 2025, will be the same as those in January-March 2025. This includes key investment options like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and Kisan Vikas Patra (KVP).

Breakdown of Small Savings Scheme Interest Rates for April-June 2025

The following are the interest rates on major small savings schemes for the first quarter of FY 2025-26:

• Sukanya Samriddhi Yojana (SSY): 8.2%

• Public Provident Fund (PPF): 7.1%

• National Savings Certificate (NSC): 7.7%

• Kisan Vikas Patra (KVP): 7.5% (Maturity in 115 months)

• Post Office Savings Deposit: 4%

• Monthly Income Scheme (MIS): 7.4%

• 1-Year Fixed Deposit (Post Office FD): 6.9%

• 2-Year Fixed Deposit: 7.0%

• 3-Year Fixed Deposit: 7.1%

• 5-Year Fixed Deposit: 7.5%

• Senior Citizens Savings Scheme (SCSS): 8.2%

No Change in Interest Rates: What It Means for Investors

The government revises small savings interest rates every quarter based on prevailing market conditions and government bond yields. However, for the April-June 2025 quarter, the rates remain the same, providing stability and predictability for savers.

This decision will be beneficial for fixed-income investors, as they can continue earning the same returns on their PPF, NSC, SSY, and other small savings schemes without worrying about fluctuations.

Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) Rates Remain Attractive

• The Sukanya Samriddhi Yojana (SSY), designed to promote savings for the girl child, continues to offer a high interest rate of 8.2%, making it one of the most lucrative small savings options.

• The PPF interest rate remains unchanged at 7.1%, offering a safe and tax-free investment for long-term financial planning.

Kisan Vikas Patra and National Savings Certificate for Secure Returns

• Kisan Vikas Patra (KVP) will offer 7.5% interest with a maturity period of 115 months, ensuring a steady return for investors looking for guaranteed income.

• NSC interest rates remain at 7.7%, making it a secure option for those seeking stable returns with moderate liquidity.

Why Has the Government Kept the Rates Unchanged?

The decision to retain the current rates aligns with the Reserve Bank of India’s (RBI) stance on interest rate stability. With inflation moderating and bond yields remaining stable, the government has opted to maintain small savings rates at existing levels.

Impact on Investors and Future Outlook

• Investors looking for tax-saving options can still rely on PPF, NSC, and Sukanya Samriddhi Yojana for tax benefits under Section 80C of the Income Tax Act.

• Senior citizens and long-term savers benefit from stable returns on savings deposits and fixed-income investments.

• The next revision of small savings interest rates will be in June 2025, and any adjustments will depend on economic conditions and RBI policies.

Conclusion: A Safe Haven for Conservative Investors

The government's decision to keep small savings scheme interest rates unchanged ensures financial stability and encourages consistent savings habits among Indians. Investors can continue benefiting from secure and predictable returns on their investments in PPF, NSC, SSY, and KVP.

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