No change in PPF, SCSS, SSY, NSC, KVP to Post Office FD interest rates for April-June quarter of FY 2025-26

The Finance Ministry has kept the interest rates unchanged on various small savings schemes, including Public Provident Fund (PPF) and National Savings Certificate (NSC), for the fifth straight quarter beginning April 1, 2025.

"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," the Finance Ministry said in a notification.

What are the current interest rates?

• Sukanya Samriddhi Yojana (SSY) Account can give you 8.2% interest.

• The rate on a three-year Post Office term deposit is 7.1%. For 1, 2 and 5 years term deposits in Post Office, the interest rates are 6.9%, 7% and 7.5% respectively.

• Public Provident Fund interest rate is 7.1%

• Interest rate for Post Office Savings Account deposit is 4%

• Post Office Recurring Deposit is offering 6.7% interest

• Senior Citizen Savings Scheme (SCSS) is offering 8.2% interest.

• Kisan Vikas Patra (KVP) interest rate is 7.5%. The KVP investments currently mature in 115 months.

• The interest rate for National Savings Certificate (NSC) is 7.7%

• The interest rate for Post Office Monthly Income Scheme is 7.4% for investors.

Small savings schemes are mainly operated by post offices and banks. The returns on these schemes are guaranteed as they are backed by the sovereign guarantee of the Government of India. A number of these schemes also offer tax benefits.

For instance, you can claim a deduction of up to ₹1.5 lakh under Section 80C of the Income-tax Act, 1961 by investing in PPF, NSC, SCSS, SSA, and 5-year Post Office fixed or term deposit schemes.

In terms of taxation, PPF and SSY schemes are special as they offer triple tax benefits. They allow you to claim a deduction at the time of investment and impose no tax on the interest earned or the amount withdrawn on maturity.