The Ministry of Finance has officially announced
that interest rates for all Post Office Small Savings Schemes will remain
unchanged for the second quarter of FY 2025–26, spanning July 1 to
September 30, 2025. These schemes continue to offer secure,
government-backed returns, making them a preferred choice for risk-averse
investors and those seeking tax benefits under the Income Tax Act.Key Highlights
- ✅ Rates remain static for the sixth
consecutive quarter
- ✅ Backed by sovereign guarantee, ensuring
safety of capital
- ✅ Select schemes offer Section 80C tax
deductions and interest exemptions under 80TTA/80TTB
Interest Rate Chart (Effective July 1, 2025)
|
Scheme |
Interest Rate (%) |
Compounding Frequency |
|
Post Office Savings Account |
4.0 |
Annually |
|
1-Year Time Deposit |
6.9 |
Quarterly |
|
2-Year Time Deposit |
7.0 |
Quarterly |
|
3-Year Time Deposit |
7.1 |
Quarterly |
|
5-Year Time Deposit |
7.5 |
Quarterly |
|
5-Year Recurring Deposit |
6.7 |
Quarterly |
|
Senior Citizen Savings Scheme (SCSS) |
8.2 |
Quarterly |
|
Monthly Income Scheme (MIS) |
7.4 |
Monthly |
|
National Savings Certificate (NSC) |
7.7 |
Annually (at maturity) |
|
Public Provident Fund (PPF) |
7.1 |
Annually |
|
Kisan Vikas Patra (KVP) |
7.5 |
Annually (matures in 115 months) |
|
Sukanya Samriddhi Yojana (SSY) |
8.2 |
Annually |
|
Mahila Samman Savings Certificate |
7.5 |
Quarterly |
Tax Benefits & Eligibility
- Section
80C:
Investments in PPF, NSC, SCSS, and 5-Year TD qualify for deductions up to
₹1.5 lakh
- Section
80TTA/80TTB:
Interest from Savings Account is exempt up to ₹10,000 (general) and
₹50,000 (senior citizens)
- Eligibility: Most schemes are open to
all Indian residents; SSY is exclusive to girl children, SCSS to
individuals aged 60+
Strategic Insights
For investors seeking stable returns with
minimal risk, Post Office schemes offer a compelling portfolio. The Senior
Citizen Savings Scheme and Sukanya Samriddhi Yojana currently lead
with 8.2%, while the NSC and KVP provide attractive medium-term
options. The PPF, though slightly lower at 7.1%, remains a long-term
favorite due to its tax-free maturity and loan/withdrawal flexibility.
Final Thoughts
With interest rates holding steady, now is a
prudent time to review your savings strategy and align it with your
financial goals. Whether you're planning for retirement, your child's
education, or simply building a secure corpus, India Post's offerings remain a
cornerstone of conservative investment planning.
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