Revision of Interest Rates for Small Savings Schemes (FY 2025-26 Q1) - F.No.1/4/2019-NS dated 28/03/2025
F.No.1/4/2019-NS
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)
North Block, New Delhi
Dated: 28.03.2025
OFFICE MEMORANDUM
Subject: Revision of interest rates for Small Savings Schemes - reg.
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.
This has the approval of the competent authority.
[Dr. Kartik Agrawal]
Deputy Director (Budget)
Tele – 011 2309 5016
To,
- The Finance Secretary & Secretary, Department of Economic Affairs, North Block, New Delhi.
- The Secretary, Department of Posts Dak Bhavan, New Delhi.
- The Secretary, Department of Expenditure North Block, New Delhi.
- The Secretary, Department of Investment and Public Asset Management, CGO complex, New Delhi.
- The Secretary, Department of Financial Services, Jeevan Deep Building, New Delhi.
- The Secretary, Department of Revenue, North Block, New Delhi.
- The Chief General Manager (DGBA), Reserve Bank of India, Central Office, Mumbai.
- The Chief General Manager, Central Account Section, Reserve Bank of India, Additional Office Building, East High Court Road, Civil Lines, P.B. No.15, Nagpur – 440 001.
- Chief Secretaries of State / UT Government.
- The Joint Director, National Savings Institute, New Delhi.
Overview
The Government of India, Ministry of Finance, has announced that the interest rates for Small Savings Schemes will remain unchanged for the first quarter (Q1) of FY 2025-26 (1st April 2025 to 30th June 2025). This decision, communicated via Office Memorandum F.No.1/4/2019-NS dated 28th March 2025, aligns with the rates applicable in the previous quarter (Q4 FY 2024-25).
Key Highlights
Unchanged Interest Rates:
Popular schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), Senior Citizens Savings Scheme (SCSS), and Post Office Time Deposits will retain their existing rates.
Stability benefits conservative investors relying on risk-free, government-backed returns.
Applicability:
Effective from 1st April 2025 to 30th June 2025.
Reflects the government’s cautious approach amid economic indicators like inflation and RBI’s monetary policy.
Authority Approval:
- The decision was approved by the competent authority, ensuring alignment with broader fiscal goals.
- Why This Matters?
- Investor Confidence: Retaining rates ensures predictability for retirees, salaried individuals, and small investors.
- Tax Benefits: Schemes like PPF and SSY continue to offer tax exemptions under Section 80C.
- Inflation Hedge: Fixed returns remain attractive compared to volatile market-linked options.
List of Small Savings Schemes & Current Rates (FY 2025-26 Q1)
| Scheme | Interest Rate (Annual) |
|---|---|
| Public Provident Fund (PPF) | 7.1%* |
| Sukanya Samriddhi Yojana (SSY) | 8.2%* |
| Senior Citizens Savings Scheme (SCSS) | 8.2%* |
| National Savings Certificate (NSC) | 7.7%* |
| Post Office Time Deposit (1-5 years) | 6.9% - 7.5%* |
| Kisan Vikas Patra (KVP) | 7.5%* (Maturity: 115 months) |
Rates indicative; refer to official notification for exact figures.
FAQs
Q1. Are Small Savings Schemes interest rates revised quarterly?
Yes, the Finance Ministry reviews rates every quarter based on G-sec yields and macroeconomic factors.
Q2. What is the best Small Savings Scheme for tax savings in 2025?
PPF (7.1%) and SSY (8.2%) remain top choices for long-term tax-free returns.
Q3. How does this revision impact Senior Citizens?
SCSS (8.2%) continues to provide monthly income with high safety, ideal for retirees.
Q4. Where to invest for short-term goals?
Post Office Time Deposits (1-3 years) offer 6.9%-7.0% with flexible tenures.
Conclusion
The government’s decision to maintain Small Savings Schemes rates underscores stability in low-risk investments. Investors are advised to diversify portfolios using these schemes for secured returns amid market fluctuations. For updates, refer to the Ministry of Finance or RBI circulars.
Keywords: Small Savings Schemes, Interest Rates 2025-26, Government Savings Schemes, PPF, NSC, SSY, SCSS, Post Office Savings, Fixed Deposit Rates, Finance Ministry Notification, RBI Guidelines, Investment Options 2025.
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