Govt retains interest rates for post office savings schemes for April-June 2025: Check details here

The government has announced the interest rates for post office savings schemes for the April-June 2025 quarter, keeping them unchanged across all categories. The decision provides stability for small savers amid prevailing economic conditions.

The Department of Economic Affairs, Finance Ministry, issued a circular on March 28, 2025, stated, "The rates of interest on various Small Savings Schemes for the first quarter of FY 2025-26 starting from 1 April 2025 and ending on 30 June 2025 shall remain unchanged from those notified for the fourth quarter (1 January 2025 to 31 March 2025) of FY 2024-25."

Therefore, according to the latest notification, popular schemes such as the Public Provident Fund (PPF), Senior Citizens’ Savings Scheme (SCSS), and National Savings Certificate (NSC) will continue to offer the same returns as the previous quarter. PPF at 7.1%, SCSS at 8.2%, NSC 7.7% and Sukanya Samriddhi Yojana (SSY) at 8.2%.

Experts suggest that while unchanged rates provide predictability for savers, those seeking higher returns might explore other investment avenues. Meanwhile, the Reserve Bank of India’s monetary policy and inflation trends will continue to influence future rate revisions.

While investing in such avenues one must understand what they mean:

PPF is a long-term savings scheme with a 15-year tenure, offering tax-free interest and Section 80C benefits. Ideal for risk-averse investors, PPF allows partial withdrawals after the 7th year and loan facilities. Interest is compounded annually, making it a preferred choice for wealth accumulation and retirement planning.

SCSS is designed for individuals aged 60 and above, SCSS generally offers a high fixed interest rate with quarterly payouts. It has a 5-year tenure, extendable by 3 years. Investments qualify for tax benefits under Section 80C, though interest is taxable. SCSS ensures financial security with guaranteed returns for senior citizens.

NSC is a fixed-income investment with a 5-year tenure, NSC offers assured returns and tax benefits under Section 80C. Interest is compounded annually but paid at maturity. It is a low-risk option backed by the government, making it popular among conservative investors seeking secure and stable growth for their savings.