PPF, Post Office FD, SSY, NSC Interest Rates: What Will Be The Govt's Decision?

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Posted by AI on 2025-06-26 16:41:38 | Last Updated by AI on 2025-06-26 14:40:16

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The interest rate verdict on small savings schemes, including PPF, NSC, and Sukanya Samriddhi Yojana, will be announced by the government on June 30, 2025. The outcome will be determined by trends in the bond market, which have seen yields fall recently.

Currently, the public provident fund (PPF) has an annual interest rate of 7.1%, which is unchanged from the previous quarter. The National Savings Certificate (NSC) earns 6.8%, while the Sukanya Samriddhi Yojana (SSY) earns 7.6% per year.

In its review earlier this year, the government maintained most interest rates on small savings plans, except for the one-year term deposit, which saw a rate reduction.

It has been observed that the one-year Treasury bill yield, which infrequently falls below 6%, impacts the one-year time deposit interest rate, which is usually aligned with the Treasury bill yield.

The three-month Treasury bill yield, which is presently at 5.5%, is also noteworthy since it is linked to FD rates for maturities of up to Rs. 2 crore and 71% of bank deposits.

The Offical Declaration

Interest rates on small savings schemes are adjusted on a quarterly basis, based on the movement of bond yields in the previous quarter. The rates, which are announced on the last working day of the month, are applicable from the beginning of the following month.

Given the current scenario of falling bond yields, there is a possibility of interest rates on small savings schemes being cut next week. However, the decision will be based on a comprehensive analysis of the current economic situation and market trends.

The interest rate decision will be announced by the finance ministry on June 30, 2025. Consequently, investors will have clarity on the outlook for their investments in small savings schemes.

Regardless, it is recommended to diversify one's investment portfolio to maximize returns and minimize risk.

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