Check the latest interest rates on PPF, NSC, Sukanya Samriddhi Yojana & other small savings schemes for Q1 FY 2025-26. Compare returns & tax benefits here.
Small Savings Schemes Interest Rates 2025 | Latest Q1 Updates & Returns
PPF interest rate 2025, Sukanya Samriddhi Yojana rate, Senior Citizens Savings Scheme, India Post savings schemes, Kisan Vikas Patra rate
Why Small Savings Schemes Still Matter in 2025
In a world dominated by mutual funds, stock markets, and digital investment platforms, small savings schemes remain a cornerstone of safe and steady savings for millions of Indians.
Backed by the Government of India, these schemes not only offer fixed and risk-free returns, but also tax benefits, making them ideal for:
- Salaried individuals
- Senior citizens
- Parents planning for children’s education
- Low-to-medium risk investors
Every quarter, the Ministry of Finance reviews and revises the interest rates for these schemes. Here’s an updated breakdown of small savings scheme interest rates in Q1 of FY 2025–26 (April–June 2025).
Small Savings Schemes Interest Rates: April–June 2025
| Scheme | Interest Rate (Annual) | Compounding | Maturity |
|---|---|---|---|
| Public Provident Fund (PPF) | 7.1% | Annual | 15 years |
| National Savings Certificate (NSC) | 7.7% | Annual | 5 years |
| Kisan Vikas Patra (KVP) | 7.5% | Compounded | 115 months |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Annual | Until age 21 or marriage |
| Senior Citizens Savings Scheme (SCSS) | 8.2% | Quarterly | 5 years |
| Post Office Monthly Income Scheme (POMIS) | 7.4% | Monthly | 5 years |
| Time Deposit (1 yr) | 6.9% | Quarterly | 1 year |
| Time Deposit (5 yr) | 7.5% | Quarterly | 5 years |
| Recurring Deposit (5 yr) | 6.7% | Quarterly | 5 years |
| Post Office Savings Account | 4.0% | Annual | N/A |
📌 Source: Department of Economic Affairs, Ministry of Finance, India
Top Performing Small Savings Schemes (Q1 FY 2025-26)
- Sukanya Samriddhi Yojana – 8.2% (Best for girl child savings)
- SCSS – 8.2% (Best for senior citizens)
- NSC – 7.7% (Ideal for mid-term savings with tax benefit)
- KVP – 7.5% (Doubles money in ~9.5 years)
What Are Small Savings Schemes?
Small Savings Schemes are investment products managed by the government through India Post and other authorized banks. They are designed to encourage household savings with guaranteed returns and often come with Section 80C tax deductions.
Types of Small Savings Schemes:
- Retirement-focused: SCSS, PPF
- Child-focused: Sukanya Samriddhi Yojana
- Income-generating: POMIS, RD
- Fixed return saving: NSC, Time Deposits
Historical Trends: Interest Rates (2020–2025)
| Scheme | 2020 | 2023 | 2025 |
|---|---|---|---|
| PPF | 7.1% | 7.1% | 7.1% |
| NSC | 6.8% | 7.7% | 7.7% |
| SSY | 7.6% | 8.0% | 8.2% |
| SCSS | 7.4% | 8.2% | 8.2% |
While market-linked investments fluctuate, small savings schemes have seen stable to increasing rates post-pandemic, supporting long-term savers.
Tax Benefits of Small Savings Schemes
- ✅ Section 80C Deductions: PPF, NSC, SSY, SCSS (up to ₹1.5 lakh annually)
- ✅ Tax-Free Returns: PPF, SSY
- ⚠️ SCSS interest is taxable, but eligible for Section 80TTB for seniors (up to ₹50,000)
FAQ
✅ Which small savings scheme gives the highest return in 2025?
Sukanya Samriddhi Yojana and SCSS currently offer the highest annual return at 8.2%.
✅ Are small savings schemes safe?
Yes, they are 100% government-backed and considered among the safest investment options.
✅ Can NRIs invest in small savings schemes?
No, NRIs are not eligible for most small savings schemes like PPF or SSY.
✅ Are small savings scheme interest rates fixed?
Rates are revised quarterly by the Ministry of Finance based on government yield and inflation.
✅ Which scheme is best for monthly income?
Post Office Monthly Income Scheme (POMIS) offers 7.4% interest, payable monthly.
- 👉 Best Tax Saving Investments in India 2025
- 👉 PPF vs NSC: Which is Better for Long-Term Savings?
- 👉 Top 5 Safe Investment Plans for Senior Citizens
- Ministry of Finance – DEA Notifications
- India Post – Savings Schemes Details
Should You Invest in Small Savings Schemes in 2025?
Absolutely! If you value capital safety, stable returns, and tax-saving, small savings schemes offer a no-stress way to build wealth — especially for conservative and long-term investors.
While they may not deliver the returns of mutual funds or equities, their zero risk profile and government guarantee make them a core part of any diversified portfolio in 2025.
Also read: Hyderabad Property Rate Trends in 2025 – Market
Last Updated on July 1, 2025 2:50 pm by Admin
About The Author
