Post Office Small Saving Scheme:The post office has many schemes available for investment for women, girls, common people and senior citizens. These include names ranging from Term Deposit, Senior Citizen Saving Certificate to Sukanya Samriddhi Account Scheme. In these, investors get guaranteed returns. Post office small savings schemes are popular among investors due to their safe investment option as well as guaranteed returns.
The government usually changes the interest rates on post office schemes every three months. Recently, the government released revised rates on small savings schemes of post office for the last quarter of the current financial year. The Department of Economic Affairs of the Finance Ministry issued a notification on 31 December 2024 (Revision of interest rates for small saving schemes) said through For the fourth quarter of the financial year 2024-25 (from January 1, 2025 to March 31, 2025)of post office Interest rates on small savings schemes will remain the same for the third quarter (from October 1, 2024 to December 31, 2024). That means there has been no change in the interest rates of small savings schemes for the fourth consecutive quarter. At presentInvestors are getting 6.7 percent to 8.2 percent interest annually on the post office scheme. Which scheme is getting the highest and which least interest in the new year? Let’s take a look.
Which scheme is getting the highest returns?
| investment options | Interest rates for January-March 2025 | compounding frequency |
|---|---|---|
| 1 Year Time Deposit | 6.9 (Annual Interest ₹708 for ₹10,000/-) | Quarterly |
| 2 Year Time Deposit | 7.0 (Annual Interest ₹719 for ₹10,000/-) | Quarterly |
| 3 Year Time Deposit | 7.1 (Annual Interest ₹729 for ₹10,000/-) | Quarterly |
| 5 Year Time Deposit | 7.5 (Annual Interest ₹771 for ₹10,000/-) | Quarterly |
| 5 Year Recurring Deposit Scheme | 6.7 | Quarterly |
| Senior Citizen Savings Scheme | 8.2 (Quarterly Interest ₹205 for ₹10,000/-) | Quarterly and Paid |
| Monthly Income Account | 7.4 (Monthly Interest ₹62 for ₹10,000/-) | Monthly and paid |
| National Savings Certificate (VIII Issue) | 7.7 (Maturity Value ₹14,490 for ₹10,000/-) | Annually |
| Public Provident Fund Scheme | 7.1 | Annually |
| Farmer Vikas Patra | 7.5 (will mature in 115 months) | Annually |
| Mahila Samman Savings Certificate | 7.5 (Maturity Value ₹11,602 for ₹10,000/-) | Quarterly |
| Sukanya Samriddhi Account Scheme | 8.2 | Annually |
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Complete details as per scheme
Post Office Time Deposit Scheme
Post Office Time Deposit Scheme is also known as Post Office Fixed Deposit Scheme. There are 4 options available for investors in this scheme. Investors can decide to invest in time deposits of 1 to 5 years according to their financial goals. The post office is offering interest ranging from 6.9 percent to 7.5 percent on time deposits. 6.9 percent interest is being given on time deposits maturing in one year, whereas the post office is giving 7.5 percent interest on FDs maturing in 5 years. Whereas 2 year and 3 year FDs are getting 7 percent and 7.1 percent interest respectively.
Post Office Recurring Deposit Scheme (RD)
You can keep your savings little by little like SIP in the Post Office Recurring Deposit Scheme. In recurring deposit, the maturity is 5 years i.e. 5 years from the date of account opening (60 monthly deposits). This account can be extended for further 5 years by applying in the concerned post office. The interest rate on Post Office RD for January-March 2025 is 6.7 percent. The government had last increased the interest rate on this from 6.5 percent to 6.7 percent in the third quarter of the last financial year i.e. October-December 2023 quarter. This rate has been in force since then.
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Senior Citizen Saving Scheme (SCSS)
Post Office Senior Citizen Saving Scheme is giving 8.2% interest on quarterly basis. The government last increased SCSS rates from 8 percent to 8.2 percent in April 2023. From then onwards it is applicable for the quarter i.e. January-March 2025.
SCSS account can be opened with a minimum deposit of Rs 1000. Investors can invest up to Rs 30 lakh in this account. Retired citizens above 55 years of age but below 60 years get three months time to open a SCSS account.
Monthly Income Account (MIA)
The interest rate on the monthly income account of the post office is 7.4 percent for the last quarter of the current financial year i.e. January-March 2025. The government had last increased the rate on MIS from 7.10 percent to 7.4 percent in April 2023. Since then, the same rate is applicable for January-March 2025 also.
Investors who open an account under Monthly Income Scheme (MIS) will get interest payment every month. Interest is paid at the end of every month from the date of account opening till maturity. The interest income earned by the account holder will be taxable. The government revises the interest rate of the scheme on a quarterly basis.
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National Savings Certificate (NSC)
The government is currently offering 7.7 percent interest on the National Savings Certificate (NSC) scheme of the post office. Last time in April 2023, the government had increased the interest rate on this scheme from 7 percent to 7.7 percent. Since then, the same rate is applicable till now i.e. for January-March 2025. The maturity of National Savings Certificate Account is 5 years. In this, the interest is compounded annually, but it is paid on maturity.
Public Provident Fund Scheme (PPF)
On the Public Provident Fund Scheme of the Post Office, interest is being given at the rate of 7.1 percent per annum for the quarter January-March 2025. The government last revised the interest rate on this scheme in April.In 2020, it was reduced from 7.90 to 7.10 percent. Since then the same rate is applicable till the current quarter.
Post Office Public Provident Fund SchemeThe interest is compounded annually. The investor can make 1 withdrawal during the financial year on completion of 5 years excluding the year of account opening. For example, if the account is opened during the financial year 2017-18, then withdrawal can be made during or after 2013-14. PPF account comes in “E-E-E” category where deposits up to Rs 1.5 lakh in a year, interest earned etc. are free from tax.
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Kisan Vikas Patra
The annual interest rate on Post Office Kisan Vikas Patra for January-March 2025 is 7.5 percent. The maturity time of this scheme is 115 months. The government last reduced the maturity time from 10 years i.e. 120 months to 115 months in April 2023. Interest on KVP account is compounded annually.
Mahila Samman Saving Certificate
The annual interest rate on Mahila Samman Saving Certificate of Post Office for January-March 2025 is 7.5 percent. Interest on MSSC account is compounded quarterly. Post Office Mahila Samman Saving Certificate SchemeStarted from April 2023. This scheme will be available for subscription of women and girls till 31 March 2025. Recently, it was told by the government that between April 2023 and October 2024, 43,30,121 accounts have been opened under the Mahila Samman Saving Certificate Scheme.
Sukanya Samriddhi Account Scheme
The interest rate applicable on Post Office’s Sukanya Samriddhi Account Scheme for January-March 2025 is 8.2 percent. The government last increased the interest rate from 8 percent to 8.2 percent in January this year. Interest on SSAC account is compounded annually.
