The government is set to decide the interest rates for small savings schemes. These rates are usually announced in the last week of December.
This time, the Finance Ministry will review the interest rates of post office small savings schemes such as the Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSA), and Senior Citizen Savings Scheme (SCSS).
The review will be for the period from January 1 to March 31, 2026, and the final decision is expected on December 31, 2025. According to reports, there is a possibility that interest rates may be reduced this time.
No Change in the Previous Quarter
In the last review for the October–December 2025 quarter, the government did not make any changes to interest rates. Schemes like PPF, Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), and Kisan Vikas Patra (KVP) continued with the same rates.
The last time the government revised interest rates on post office small savings schemes was during the January–March 2024 quarter.
Current Interest Rates (July–September 2025 Quarter)
Here are the interest rates that are currently applicable:
Savings Deposit: 4%
1-Year Time Deposit: 6.9%
2-Year Time Deposit: 7%
3-Year Time Deposit: 7.1%
5-Year Time Deposit: 7.5%
5-Year Recurring Deposit (RD): 6.7%
Senior Citizen Savings Scheme (SCSS): 8.2%
Monthly Income Scheme (MIS): 7.4%
National Savings Certificate (NSC): 7.7%
Public Provident Fund (PPF): 7.1%
Kisan Vikas Patra (KVP): 7.5% (Maturity period: 115 months)
Sukanya Samriddhi Account: 8.2%
Impact on Investors
Small savings schemes are widely used by millions of people across the country, especially senior citizens, pensioners, and middle-class families.
If the government reduces interest rates, it will directly affect the income of these investors. However, it is important to note that the government does not always take decisions strictly based on a fixed formula.
