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Post Office Savings Schemes Interest Rates January-March 2025: The Finance Ministry announces the interest rates for small savings schemes, also popularly called the post office savings schemes, every quarter.
Small savings schemes include the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Mahila Samman Savings Certificate, Kisan Vikas Patra, National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS) and more.
Post Office Savings Schemes Interest Rates January-March 2025
The interest rates for small savings schemes have been kept unchanged for the January-March 2025, that is the fourth quarter of the current financial year 2024-25.
“The rate of interest on various Small Savings Schemes for the fourth quarter of FY 2024-25 starting from 1st January, 2025 and ending on 31st March, 2025 shall remain unchanged from those notified for the third quarter (1st October, 2024 to 31st December, 2024) of FY 2024-25,” said the Department of Economic Affairs, Finance Ministry via press release dated December 31, 2024.
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With the continuation of existing interest rates on post office savings schemes, investors will receive the same returns on their investments across different schemes. Below is the full list of latest interest rates on small savings schemes:
How are small savings schemes interest rates determined?
The central government provides sovereign backing for post office schemes, guaranteeing their security. Interest rates for these small savings schemes undergo quarterly reviews and adjustments by the government.
The interest rate determination follows the Shyamala Gopinath Committee’s methodology. The committee stipulates that rates for various small savings programmes should be positioned 25-100 basis points above the corresponding government bond yields (where 100 basis points equals 1%). This structure ensures these programmes maintain their attractiveness to investors.
The last time the interest rates for small savings or post office schemes were changed was in the January-March 2024 quarter. The previous adjustment specifically was for the 3-year post office time deposit and Sukanya Samriddhi Yojana, whilst other schemes remained unchanged.
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As international central banks begin reducing their policy rates, attention turns to potential adjustments in India. Economists anticipate the Reserve Bank of India might lower its repo rate and other policy rates in 2025.
The government’s approach towards small savings rates is expected to remain prudent. Given the concluding phase of rate increases and the modest adjustments observed recently, substantial rate reductions in interest rates of small savings schemes appear unlikely in the coming months.
