India Post has announced the Post Office new interest rates for April 2025, and there’s good news for savers! Whether you’re investing in a Time Deposit (TD), Monthly Income Scheme (MIS), Recurring Deposit (RD), Public Provident Fund (PPF), or Fixed Deposit (FD), these small savings schemes continue to offer secure and attractive returns.
The government has kept the interest rates unchanged for the April to June 2025 quarter, which means investors can enjoy the same rates that were offered in the previous quarter. Backed by the Government of India, these Post Office schemes are known for their safety, steady returns, and tax benefits.
Post Office Interest Rates (April – June 2025)
| Scheme Name | Interest Rate (Annual) | Tenure | Interest Type | Example Returns |
|---|---|---|---|---|
| Time Deposit (1-Year) | 6.9% | 1 year | Compounded quarterly | ₹1 lakh → ₹1,06,900 |
| Time Deposit (5-Year) | 7.5% | 5 years | Compounded quarterly | ₹1 lakh → ₹1,43,389 |
| Monthly Income Scheme | 7.4% | 5 years | Monthly payout | ₹9 lakh → ₹5,550/month |
| Recurring Deposit (RD) | 6.7% | 5 years | Compounded quarterly | ₹5,000/month → ₹3,48,964 total |
| PPF | 7.1% | 15 years | Compounded annually | ₹1.5 lakh/year → ~₹40.68 lakh in 15 years |
The Post Office Interest Rates for April 2025 make these small savings schemes a reliable choice for every Indian household. Whether you’re saving for retirement, your child’s education, or just want stable monthly income, there’s a Post Office product that fits your needs.
With up to 7.5% returns, government security, and tax-saving options, Post Office schemes continue to be among the most trusted investment avenues in India.
Why Post Office Schemes Are Popular in India
Post Office investment schemes are not just for rural investors. Professionals, senior citizens, homemakers, and even young adults turn to these savings plans because they offer:
- Guaranteed returns backed by the government
- Tax-saving options (under Section 80C)
- Low risk with decent interest rates
- Ideal for long-term financial planning
Let’s now look at each scheme in detail and what kind of return you can expect if you invest in April 2025.
see also: By Depositing Just ₹1,500 Every Month, You Will Get ₹1,07,050
Post Office Time Deposit (TD) – Fixed Returns with Flexibility
Interest Rates (April-June 2025):
- 1-Year TD: 6.9%
- 2-Year TD: 7.0%
- 3-Year TD: 7.1%
- 5-Year TD: 7.5%
Example Calculation:
If you invest ₹1,00,000 in a 5-Year TD at 7.5%, you’ll receive approximately ₹1,43,389 at maturity.
Key Features:
- Minimum deposit: ₹1,000
- Compounded quarterly
- 5-Year TD qualifies for Section 80C deduction
Post Office Monthly Income Scheme (MIS)
Interest Rate: 7.4% (unchanged)
Ideal For:
Retired individuals or anyone looking for steady monthly income.
Example:
Invest ₹9,00,000 (maximum limit for joint account) and receive ₹5,550/month.
Key Features:
- Tenure: 5 years
- Minimum investment: ₹1,000
- No reinvestment option for monthly income
Post Office Recurring Deposit (RD) – Grow with Monthly Savings
Interest Rate: 6.7% (compounded quarterly)
Suitable For:
Students, early earners, and families building a long-term savings habit.
Example:
Deposit ₹5,000/month for 5 years → Get ~₹3,48,964 at maturity.
Key Features:
- Tenure: 5 years
- Missed payments allowed with penalty
- Interest compounded quarterly
Public Provident Fund (PPF) – Best for Long-Term Wealth Creation
Interest Rate: 7.1% (compounded annually)
Ideal For:
Anyone planning for retirement, children’s education, or long-term goals.
Example:
Deposit ₹1.5 lakh/year for 15 years → Receive approx ₹40.68 lakh (tax-free) at maturity.
Key Features:
- Lock-in: 15 years (can be extended in blocks of 5 years)
- Completely tax-free returns
- Section 80C benefit up to ₹1.5 lakh
see also: FD Vs SIP: Know Which Is the Better Option for Investment in 2025
Post Office FD vs Bank FD: Which Is Better?
While banks like SBI, HDFC, and ICICI offer FDs ranging from 6.5% to 7.5%, Post Office Time Deposits offer more stability and government backing. For risk-averse investors, Post Office TDs are a safer long-term bet.
| Bank FD (SBI, 5-Year) | 6.5% (approx) |
|---|---|
| Post Office TD (5-Year) | 7.5% |
Post Office Interest Rates FAQs
1. Are Post Office interest rates revised every month?
No, they are reviewed and revised quarterly by the Ministry of Finance.
2. Is the interest earned taxable?
Yes, except for PPF, the interest from other schemes is taxable as per your income slab.
3. Can NRIs invest in Post Office schemes?
No, currently only Indian residents are allowed to invest.
4. Can I transfer my Post Office RD or TD?
Yes, you can transfer accounts between post offices in India.
5. Which Post Office scheme is best for senior citizens?
Monthly Income Scheme (MIS) and 5-Year TD are best due to regular income and decent returns.
