Government changes the interest rates on small savings schemes like PPF, SCSS, POMIS, NSC, KVP, SSY every three months, but there has been no change in it for some time. In such a situation, changes in these rates are expected in the first quarter of FY26.
Post Office Small Savings Scheme: There are many great investment schemes available in the post office for women, children, common people and senior citizens. These include schemes like Term Deposit, Senior Citizen Savings Certificate, Sukanya Samriddhi Account. In these schemes, investors get a guarantee of fixed returns, due to which these schemes have become a safe and reliable option among investors.
The government changes the interest rates on post office schemes every three months. On 31 December 2024, the government released the revised rates for the last quarter of the current financial year. However, the government did not change the interest rates on the post office scheme for the fourth consecutive time. As we know that the government changes the interest rates on post office schemes every three. The financial year 2024-25 will end at the end of this month, and on the last day of March, the government will release new revised rates for post office schemes for the first quarter of the new financial year.
There has been no change in interest rates on small savings schemes for the last four quarters, but this time there is a possibility of change in interest rates on investment options like PPF, SSY, SCSS, NSC. Interest rates on small savings schemes of post office are different. Currently, which scheme is getting the highest interest and which is getting the lowest interest, see the details in the list here.
Which scheme is giving the highest return
| Investment Options | Interest Rates for Jan-Mar 2025 (%) | Compounding Frequency |
|---|---|---|
| 1 Year Time Deposit | 6.9% (Annual interest on Rs 10,000 deposit is Rs 708) | Quarterly |
| 2 Year Time Deposit | 7.0% (Annual interest on Rs. 10,000 deposit is Rs. 719) | Quarterly |
| 3 Year Time Deposit | 7.1% (Annual interest on Rs 10,000 deposit is Rs 729) | Quarterly |
| 5-Year Time Deposit | 7.5% (Annual interest on Rs 10,000 deposit is Rs 771) | Quarterly |
| 5 Year Recurring Deposit Scheme | 6.7 | Quarterly |
| Senior Citizen Savings Scheme | 8.2 (Quarterly interest on Rs 10,000 deposit Rs 205) | quarterly deposit in account |
| Monthly Income Account | 7.4 (Monthly interest on Rs 10,000 deposit is Rs 62) | quarterly deposit in account |
| National Savings Certificate (VIII Issue) | 7.7 (Maturity value on Rs 10,000 deposit is Rs 14,490) | annual |
| Public Provident Fund Scheme | 7.1 | annual |
| Kisan Vikas Patra | 7.5 (Scheme matures in 115 months) | annual |
| Mahila Samman Savings Certificate | 7.5 (Maturity value on Rs 10,000 deposit is Rs 11,602) | Quarterly |
| Sukanya Samriddhi Account Scheme | 8.2 | annual |
Complete details according to the scheme
Post Office Time Deposit Scheme
Post Office Time Deposit Scheme, also known as Post Office Fixed Deposit, has 4 options. Investors can invest for 1 to 5 years according to their financial goals. The interest rate on this scheme ranges from 6.9% to 7.5%. FD maturing in 1 year is getting 6.9% interest, 7% on 2 years, 7.1% on 3 years and 7.5% on 5 years.
Post Office Recurring Deposit Scheme (RD)
In the Post Office Recurring Deposit (RD) scheme, you can deposit small amounts like SIP. This scheme is for 5 years, i.e. maturity occurs 5 years after opening the account. It can be extended for 5 more years. The interest rate on Post Office RD for January-March 2025 is 6.7%, which was increased from 6.5% in October-December 2023.
Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) of the post office is getting 8.2% interest on a quarterly basis. This interest rate was increased from 8% to 8.2% in April 2023 and is applicable till now. The minimum deposit in this scheme starts from Rs 1000 and investors can invest up to Rs 30 lakh.
Monthly Income Account (MIA)
The interest rate on the Monthly Income Scheme (MIS) of the post office for January-March 2025 is 7.4%, which was increased from 7.1% in April 2023. In this scheme, investors get interest every month, which is paid at the end of the month from the opening of the account to maturity. This interest is taxable, and the government changes the interest rate every quarter.
National Savings Certificate (NSC)
The National Savings Certificate (NSC) scheme of the post office is currently getting 7.7% interest, which was increased from 7% in April 2023. This rate is applicable till January-March 2025. The maturity of NSC is 5 years, in which the interest is compounded annually, but it is paid at the time of maturity.
Public Provident Fund Scheme (PPF)
The Public Provident Fund (PPF) scheme of the post office is getting 7.1% annual interest for the January-March 2025 quarter. This rate was reduced from 7.9% in April 2020 and is applicable till now. Interest in PPF is compounded annually. After completion of 5 years, investors can make 1 withdrawal in a financial year. PPF account is tax free up to Rs 1.5 lakh.
Kisan Vikas Patra
The annual interest rate on the Kisan Vikas Patra of the post office is 7.5 percent for January-March 2025. The maturity time of this scheme is 115 months. The government last reduced the maturity time from 10 years i.e. 120 months to 115 months in April 2023. Interest on KVP account is compounded annually.
Mahila Samman Saving Certificate
The annual interest rate on the Post Office Mahila Samman Saving Certificate (Post Office Schemes) scheme for the January-March 2025 quarter is 7.5%. This scheme is specially designed for women, in which safe and good interest is available. This scheme is for a period of 2 years and the last date to invest in it is till March 2025. That is, now only one week is left. The government has not made any proposal regarding the extension of this scheme in Budget 2025, due to which it is being speculated that this scheme may be closed after March 2025.
Sukanya Samriddhi Account Scheme
The interest rate on the Post Office Sukanya Samriddhi Account Scheme for January-March 2025 is 8.2%. The government had increased this interest rate from 8% to 8.2% in January 2025. The interest on this account is compounded annually.
