Government Revises Small-Savings Returns for Q4 FY2024-25, The Government of India has announced revised interest rates on Post Office small-savings schemes including the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) for the January–March 2025 quarter.
In line with the recent uptick in bond yields and inflation trends, the Finance Ministry has increased returns on select long-term saving schemes, offering better yields to small investors, women, and parents investing for their children’s future.
New Interest Rates for January–March 2025
| Scheme | Old Rate (Oct–Dec 2024) | New Rate (Jan–Mar 2025) | Change |
|---|---|---|---|
| Public Provident Fund (PPF) | 7.1% | 7.3% | 🔼 +0.20% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | 8.4% | 🔼 +0.20% |
| National Savings Certificate (NSC) | 7.7% | 7.8% | 🔼 +0.10% |
| Monthly Income Scheme (MIS) | 7.4% | 7.4% | ➖ No Change |
| Senior Citizen Savings Scheme (SCSS) | 8.2% | 8.3% | 🔼 +0.10% |
| Kisan Vikas Patra (KVP) | 7.5% | 7.6% | 🔼 +0.10% |
| Recurring Deposit (5-Year) | 6.7% | 6.8% | 🔼 +0.10% |
These new rates will remain valid from January 1, 2025, to March 31, 2025, after which the government will review them again based on the economic outlook.
PPF: Long-Term Safe Investment Gets a Boost
The Public Provident Fund (PPF), one of the most popular long-term savings options, now offers 7.3% annual interest, fully backed by the Government of India.
Key Highlights:
- Tenure: 15 years (extendable in 5-year blocks).
- Investment Limit: ₹500 to ₹1.5 lakh per year.
- Tax Benefit: Full exemption under Section 80C, and interest earned is tax-free.
Financial planners say the hike strengthens PPF’s position as a safe, EEE-status (Exempt-Exempt-Exempt) product ideal for retirement planning.
Sukanya Samriddhi Yojana (SSY): Best for Girl-Child Savings
The government has also raised the Sukanya Samriddhi Yojana interest rate to 8.4%, the highest among small-savings schemes.
Key Features:
- Eligibility: Parents/guardians of a girl child below 10 years.
- Deposit Limit: ₹250 minimum, ₹1.5 lakh maximum per year.
- Tenure: 21 years or until the girl turns 21.
- Tax Benefits: Full exemption under Section 80C, and tax-free maturity amount.
The higher SSY rate makes it a preferred choice for long-term education and marriage savings amid rising costs.
Senior Citizen Savings Scheme: Stable & Reliable
Senior citizens will now earn 8.3% annual interest, payable quarterly.
The SCSS remains the best government-backed product for retirees looking for steady income.
Key Benefits:
- Tenure of 5 years (extendable by 3 years).
- Interest credited quarterly to savings account.
- Investment limit up to ₹30 lakh per person.
What Analysts Say
Financial experts see this rate revision as a positive step to align small-savings returns with inflation and bond-market trends.
“The rise in SSY and PPF rates will encourage household savings at a time when inflation is gradually stabilizing,”
said Rajesh Sharma, senior economist at a Mumbai-based investment firm.
He added that government-backed small-savings instruments remain the safest retail investment option, particularly for long-term and retirement goals.
Comparison with Bank Deposits
While leading banks currently offer 6.5–7.5% on 5-year FDs, Post Office schemes like PPF (7.3%) and SSY (8.4%) provide higher yields with full sovereign guarantee, making them more attractive for conservative investors.
How to Invest
Investors can open or manage their PPF, SSY, and NSC accounts either at Post Office branches or authorized public-sector and private banks.
Online deposits through India Post Payments Bank (IPPB) are also supported for convenience.
Better Returns, Safer Future
The government’s latest move to revise PPF and Sukanya Samriddhi Yojana rates signals its continued focus on promoting domestic savings and financial security.
For households seeking tax-free, guaranteed, and inflation-beating returns, these Post Office schemes remain the most reliable long-term options in 2025.
Disclaimer: This article is based on official updates from the Ministry of Finance as of January 2025. Investors should verify the latest rates before making any financial decisions.
