Get ₹2.54 lakh from Post Office Deposit like this! Check new interest rates on small savings schemes

Giving a gift to small depositors, the Central Government has decided to keep the interest rates on various small savings schemes unchanged for the fourth quarter of the financial year 2025. This decision is different from the usual practice of revising interest rates on small savings schemes like Post Office Deposit, Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Savings Certificate (NSC) every quarter. For the January-March 2025 quarter, the government has announced that the interest rates on these schemes will remain unchanged. However, interest rates on small savings schemes including PPF, NSC and KVP are reviewed every three months.

Interest rates on small savings schemes range between 4% to 8.2%. The government also monitors the cash situation and inflation in the country before deciding on the interest rates of small savings schemes. According to News18, the Finance Ministry has issued a notification, stating: "The interest rates on various small savings schemes for the fourth quarter of FY 2024-25, January 1, 2025, to March 31, 2025, shall remain unchanged from the rates notified for the third quarter (October 1, 2024 to December 31, 2024)."

The current interest rate for the Public Provident Fund (PPF) is 7.1%, while banks are offering interest rates in the range of 6.5% to 8.05%. These rates are for deposits with tenures between 1-3 years for citizens below 60 years of age. Senior citizens are offered additional interest rates on fixed deposits. Sukanya Samriddhi Yojana (SSY) offers an attractive 8.2% interest. The government had previously increased these rates in December 2023. For a Sukanya Samriddhi account, the minimum investment requirement is ₹250, with a maximum limit of ₹1.5 lakh per financial year. Deposits can be made as lump sums, with no restrictions on the number of deposits within a month or a financial year. The scheme offers up to 8.2% interest, making it an excellent option for safe, long-term savings.

What are small savings schemes

To encourage citizens to save regularly, the government manages several small savings schemes. These schemes are classified into three types:

Savings deposits, social security schemes and monthly income schemes.

Postal deposits: This includes savings accounts, recurring deposits, fixed deposits and monthly income schemes (MIS).

Savings certificates: This includes National Savings Certificates (NSC) and Kisan Vikas Patra (KVP).

Social security schemes: This includes Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF) and Senior Citizen Savings Scheme (SCSS).

These schemes provide individuals with safe and reliable options to grow their savings.

Interest Rates on Small Savings Schemes – Current Quarter (January-March 2025)

Savings Deposit: 4 per cent

1-Year Post Office Term Deposit: 6.9 per cent

2-Year Post Office Term Deposit: 7.0 per cent

3-Year Post Office Term Deposit: 7.1 per cent

5-Year Post Office Term Deposit: 7.5 per cent

5-Year Recurring Deposit: 6.7 per cent

National Savings Certificate (NSC): 7.7 per cent

Kisan Vikas Patra: 7.5 per cent (will mature in 115 months)

Public Provident Fund: 7.1 per cent

Sukanya Samriddhi Account: 8.2 per cent

Senior Citizen Savings Scheme: 8.2 per cent

Monthly Income Account: 7.4 per cent.

As per the new interest policy of the government, post office schemes are a great option for those looking for risk-free investments with good returns in the short term. Post Office small savings schemes, including Post Office Recurring Deposit (RD), are particularly popular.

In the Post Office RD scheme, you can accumulate a decent amount of ₹8 lakh by investing just ₹5,000 per month. A key feature of this scheme is easy to get a loan, making it an attractive option for individuals looking for both savings and financial flexibility.

In the year 2023, the government gave a gift to investors by increasing the interest rate on the Post Office Recurring Deposit Scheme. These new rates are applicable in the October-December 2023 quarter. Talking about the interest rate on investment in this scheme, an interest rate of 6.7 percent is available, which is revised on a quarterly basis. But the benefit under this scheme is given on an annual basis.

How to get a loan against your deposit?

You can open an account in the Post Office Recurring Deposit (RD) scheme by visiting any nearest post office. The minimum investment starts from ₹100. The maturity period for post office RD is five years, but this scheme also provides the facility to close the account before the completion of this period. Additionally, this scheme also provides loan facility. After the account is active for a year, you can get a loan of up to 50% of the deposit amount. However, the interest rate on the loan is 2% higher than the current RD interest rate.

Disclaimer: This content has been sourced and edited from news24online.