Post Office Small Savings Scheme Interest Rate Jan – March 2025

What are the latest Post Office Small Savings Scheme Interest Rate Jan – March 2025? What is the interest rate for PPF, SSY, SCSS, KVP, or NSC schemes for 2025?

The Ministry of Economic Affairs is scheduled to announce the interest rates for all Post Office Small Saving Scheme Interest Rates on a quarterly basis. In line with this, the department has communicated the relevant interest rates for the Post Office Small Savings Scheme for the period of January to March 2025.

Previously, interest rates were announced on an annual basis. However, starting from the fiscal year 2016-17, interest rates will be determined on a quarterly basis. I have previously authored a comprehensive article on this topic, and I am including the link to that article below.

• Post Office Savings Schemes -Changes effective from 1st, April 2016

Below is the timetable for change in interest rates for all Post Office Savings Schemes.

On December 31, the Finance Ministry declared that the interest rates for different small savings schemes will stay the same for the quarter beginning January 1, 2025.

The interest rates for different Small Savings Schemes during the fourth quarter of FY 2024-25, which will commence on January 1, 2025, and conclude on March 31, 2025, will remain consistent with those announced for the third quarter (October 1, 2024, to December 31, 2024) of FY 2024-25, according to a notification issued by the finance ministry.

Hence, the applicable rate of Post Office Small Savings Scheme Interest Rate Jan – March 2025 is as below.

Post Office Savings Schemes Interest Rates January to March 2025
Sl No.	Scheme Name	Current Interest Rate	Revised Interest Rate
1	Savings Deposit	4.00%	4.00%
2	Term Deposit 1 Yr	6.90%	6.90%
3	Term Deposit 2 Yrs	7.00%	7.00%
4	Term Deposit 3 Yrs	7.10%	7.10%
5	Term Deposit 5 Yrs	7.50%	7.50%
6	RD-5 Yrs	6.70%	6.70%
7	NSC-5 Yrs	7.70%	7.70%
8	Post Office Monthly Income Scheme (MIS)	7.40%	7.40%
9	Public Provident Fund (PPF)	7.10%	7.10%
10	Senior Citizen Savings Scheme (SCSS)	8.20%	8.20%
11	Kisan Vikas Patra (KVP)	7.50%	7.50%
12	Sukanya Samriddhi Scheme (SSY)	8.20%	8.20%

Note – KVP will now double in 115 months.

I have tabulated the same in the image format also for your reference.

Features of Post Office Savings Schemes

Now let us glance at the Post Office Small Savings Schemes features. This will give you more clarity in choosing the right product for you.

# Post Office Savings Account

Like Bank Account, Post Office also offers you the savings account to its customers. The few features are as below.

• Minimum Rs.500 is required to open the account.
• Account can be opened single, jointly, Minor (above 10 years of age), or a guardian on behalf of a minor.
• Minimum balance to be maintained in an account is INR 500/- , if balance Rs. 500 not maintained, a maintenance fee of one hundred (100) rupees shall be deducted from the account on the last working day of each financial year and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account shall stand automatically closed.
• Cheque facility/ATM facility are available
• Interest earned is Tax-Free up to INR 10,000/- per year from the financial year 2012-13
• Account can be transferred from one post office to another
• One account can be opened in one post office.
• At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active, else account became silent (Dorment).
• Intra Operable Netbanking/Mobile Banking facility is available.
• Online Fund transfer between Post Office Savings Accounts/Stop Cheque/Transaction View facility is available through Intra Operable Netbanking/Mobile Banking.
• The facility to link with IPPB Saving Account is available.
• Funds Transfer (Sweep in/Sweep out) facility is available with IPPB Saving Account.

# Post Office Fixed Deposits (FDs)

• Minimum of Rs.1,000 and in multiples of Rs.100. There is no maximum limit.
• FD tenure currently available is 1 yr, 2 Yrs, 3 Yrs and 5 Yrs.
• Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
• Account can be opened by cash /Cheque and in case of Cheque the date of realization of cheque in Govt. account shall be date of opening of account.
• Account can be transferred from one post office to another
• Single account can be converted into Joint and Vice Versa .
• Any number of accounts can be opened in any post office.
• Interest shall be payable annually, No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
• The annual interest may be credited to the savings account of the account holder at his option.
• Premature encashment not allowed before expiry of 6 month, If closed between 6 month to 12 month from date of Opening, Post Office Saving Accounts interest rate will be payable.
• 5 Yrs FD is eligible for tax saving purposes under Sec.80C.

# Post Office Recurring Deposit (RD)

• Minimum is Rs.100 a month and in multiple of Rs.10. There is no maximum limit.
• Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
• Tenure of RD is 5 years.
• Account can be opened by cash / Cheque and in case of Cheque the date of deposit shall be date of clearance of Cheque.
• Premature closure is allowed after three years from the date of opening of the account.
• Account can be transferred from one Post Office to another Post Office.
• Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month.
• If a subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee @ 1 Rs for every 100 rupee shall be charged. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made.
• If in any RD account, there is a monthly default amount, the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit.
• There is rebate on advance deposit of at least 6 installments, Rs. 10 for 6 month and Rs. 40 for 12 months Rebate will be paid for the denomination of Rs. 100.
• One loan up to 50% of the balance allowed after one year. It may be repaid in one lumpsum along with interest at the prescribed rate at any time during the currency of the account.
• Account can be extended for another 5 years after it’s maturity.

# Post Office Monthly Income Scheme (MIS)

• Maximum investment is Rs.9 lakh in a single account and Rs.15 lakh jointly (It is revised during the Budget 2023). Earlier it was Rs.4.5 lakh for a single account and Rs.9 lakh for joint accounts.
• Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
• Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts (Rs. 4.5 Lakh).
• Single account can be converted into Joint and Vice Versa.
• Maturity period is 5 years.
• Interest can be drawn through auto credit into savings account standing at same post office,orECS./In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices.
• Can be prematurely en-cashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.).
• Interest shall be payable to the account holder on completion of a month from the date of deposit.
• If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.

# Post Office Senior Citizen Savings Scheme (SCSS)

I have written a detailed post on this. Refer to the same at ” Post Office Senior Citizen Scheme (SCSS)-Benefits and Interest Rate“.

Note – Effective from 1st April 2023, the maximum limit is currently Rs.30 lakh. Earlier it was Rs.15 lakh. This change happened during Budget 2023.

# Public Provident Fund (PPF)

I have written various posts on PPF. Refer the same:-

• New PPF and SSY Rules Effective From 1st October 2024
• PPF (Public Provident Fund) Scheme 2019 – 5 Important Changes
• PPF Investment and Deposit Rules – Beware your Banks are unaware of it!
• Online deposit in Post Office PPF, Sukanya Samridhi, RD – How to do?
• PPF Account for Minor and Wife – Rules, Tax Benefits and Tricks
• Premature closure of PPF account – New Rules 2016
• PPF withdrawal rules & options after 15 years maturity
• All about Public Provident Fund (PPF)
• PPF-Loan and Withdrawal
• PPF-When to contribute to get higher returns?
• How to merge multiple PPF accounts into one?
• After PPF Maturity Should We Close or Extend?

# National Savings Certificate NSC (VIII Issue)

• Minimum Rs.1,000 and in multiple of Rs.100.
• No maximum limit.
• Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
• Tax Benefit under Sec.80C is available.
• Tenure is 5 years.

# Kisan Vikas Patra (KVP) Account

• Minimum Rs.1,000 and in multiples of Rs.100. There is no maximum limit.
• Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
• The money will be double at maturity. However, as the interest rate changes on a quarterly basis. The maturity period also varies once in a quarter.

# Sukanya Samriddhi Account Yojana (SSY)

I have written various posts on this. Refer the same:-

• Sukanya Samriddhi Account-An investment scheme for your girl child
• Difference of Sukanya Samriddhi Account Vs PPF (With Tax Benefits)
• Sukanya Samriddhi Account -When to invest to earn more returns?
• 5 unknown facts about Sukanya Samriddhi Yojana (Account) Rules
• Online deposit in Post Office PPF, Sukanya Samridhi, RD – How to do?

Conclusion – While inflation appears to be moderating, the government’s choice to keep interest rates unchanged for all Post Office Small Savings Schemes from January to March 2025 indicates a prudent strategy. However, the interplay of declining inflation and high interest rates benefits investors, as it guarantees that their investments will yield positive real returns (Return on Investment minus Inflation Rate).