The Government of India has announced the interest rates for popular small savings schemes such as the Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), and others for the October–December 2025 quarter (Q3 of FY26).
Despite speculation of a possible rate cut following the Reserve Bank of India’s repo rate reduction, the government has kept the rates unchanged this quarter, ensuring stability for millions of small savers across the country.
Interest Rates for Small Savings Schemes (Oct–Dec FY26)
Here are the key interest rates that will apply for the October–December 2025 quarter:
- Public Provident Fund (PPF): 7.10% (compounded annually)
- National Savings Certificate (NSC, 5-year): 7.70%
- Sukanya Samriddhi Yojana (SSY): 8.20%
- Senior Citizens’ Savings Scheme (SCSS): 8.20% (paid quarterly)
- Kisan Vikas Patra (KVP): 7.50% (maturity in ~115 months)
- Post Office Monthly Income Scheme (MIS): 7.40%
- Post Office Term Deposits: 1-year: 6.90%, 2-year: 7.00%, 3-year: 7.10%, 5-year: 7.50%
- Recurring Deposit (5-year): 6.70%
- Post Office Savings Account: 4.00%
These rates are aligned with the government’s quarterly review mechanism, which considers prevailing yields on government securities before fixing the final returns for small savings schemes.
Why the Rates Matter
Small savings schemes remain one of the most trusted investment options for Indian households, particularly for those looking for:
- Safe and guaranteed returns
- Tax benefits (especially under Section 80C for PPF, NSC, and SSY)
- Long-term wealth creation with government backing
By keeping rates unchanged, the government has cushioned savers from the immediate impact of falling interest rates in the broader economy.
What This Means for Investors
- For existing investors: Your investments continue to earn the same rate of return, providing stability in financial planning.
- For new investors: This is a good window to lock in your money into schemes like NSC, SCSS, and PPF before any potential future rate cuts.
- For long-term goals: Products like PPF and SSY remain attractive for retirement and child education planning because of their consistent performance and tax advantages.
Final Thoughts
The unchanged rates for the Oct–Dec 2025 quarter highlight the government’s intent to balance fiscal realities with the need to protect household savers. Whether you are planning for retirement, children’s education, or just looking for safe avenues to park your money, small savings schemes continue to be a dependable choice.
👉 Tip for investors: Diversify your portfolio by mixing long-term instruments like PPF with medium-term options like NSC and SCSS. This helps balance liquidity, returns, and safety in changing market conditions.
