The Economic Affairs Bureau of the Ministry of Finance announced that there will be no change to interest rates for small savings schemes for the January-March 2025 period. This means that the interest rates on these schemes will be the same as the notified rates for October-December 2024 period. This article provides the latest Post Office Small Savings Scheme interest rates applicable for the quarter January 2025 to March 2025.
Notice regarding the latest post office interest rates January to March 2025
According to a press release dated December 31, 2024:
“Interest rates for various small savings schemes for the fourth quarter of the financial year 2024-25 (ending from 1 January 2025 to 31 March 2025) are as follows: ) remains unchanged from the rates notified in , 2024) for the financial year 2024-25.
Current interest rates for small savings schemes
The interest rates applicable to various small savings schemes for the quarter January to March 2025 are as follows:
| scheme | interest rate |
|---|---|
| ordinary deposit | 4.0% |
| 1 year term deposit | 6.9% |
| 2 year term deposit | 7.0% |
| 3 year term deposit | 7.1% |
| 5 year term deposit | 7.5% |
| 5 year term deposit | 6.7% |
| Elderly savings system | 8.2% |
| monthly income account scheme | 7.4% |
| national savings certificate | 7.7% |
| public provident fund system | 7.1% |
| Kisan Vikas Patra | 7.5% |
| Sukanya Samriddhi Account | 8.2% |
How governments set interest rates on small savings schemes
Small savings schemes are supported by central government and provided with a state guarantee. Interest rates on these schemes are reviewed and set quarterly by the government.
When was the last time these interest rates changed?
The interest rate for the small savings scheme was last revised in the January-March 2024 period. The amendments have increased interest rates on post office three-year fixed deposits and Sukanya Samriddhi Yojana. There will be no price changes from April 2024 onwards.
Will interest rates be cut in the coming quarters?
Economists predict that the Reserve Bank of India (RBI) is likely to cut repo rates and other policy rates in 2025. Central banks around the world have already started cutting interest rates, raising questions about whether the Indian government will follow suit and cut small savings schemes. Rates for upcoming quarters.
Summary of popular post office small savings systems
#1 – 5 Year Post Office Fixed Deposit Account (RD)
- Interest rate: 6.7% annually (compounded quarterly).
- Minimum deposit: INR 100 (in multiples of INR 10) per month. There is no upper limit.
- Target audience: Small and regular savers, risk-averse investors, long-term planners.
#2 – Post Office Fixed Deposit Account (TD)
- Interest rate: Depends on length of service (1-5 years).
- Minimum deposit amount: INR 1,000 (in multiples of INR 100). There is no upper limit.
- Who it’s for: Fixed income investors, tax-saving options, flexible holding periods.
#3 – Post Office Monthly Income System Account (MIS)
- Interest rate: 7.4% per annum, paid monthly.
- Minimum deposit amount: INR 1,000 (in multiples of INR 1,000).
- Target audience: Retirees, pensioners and moderate savers.
#4 – Senior Citizen Savings Scheme (SCSS)
- Interest rate: 8.2% per year, paid quarterly.
- Minimum deposit amount: INR 1,000 (in multiples of INR 1,000).
- Target audience: Seniors and retirees looking for stable regular income.
#5 – 15 Year Public Provident Fund (PPF) Account
- Interest rate: 7.1% annually (compounded annually, tax-free).
- Minimum deposit amount: INR 500 per financial year.
- Target audience: Long-term investors and tax-conscious individuals.
#6 – Sukanya Samriddhi Account (SSA)
- Interest rate: 8.2% per year, compounded annually (tax-free).
- Minimum deposit amount: INR 250 per year.
- Target audience: Parents/guardians who are saving for a girl child.
#7 – National Savings Certificate (NSC)
- Interest rate: 7.7% per year (compounded but payable at maturity).
- Minimum deposit amount: INR 1,000 (in multiples of INR 100).
- Target audience: Conservative investors and tax-conscious individuals.
