The Finance Ministry has announced the latest interest rates for small savings schemes for the October–December quarter of FY 2025–26.
Just like the previous quarter, there’s no change in rates this time either.
This marks the sixth consecutive quarter where the government has kept rates unchanged.
Small savings schemes, mostly run through post offices and banks, remain one of the most popular investment options for Indian households.
Key Interest Rates for Popular Small Savings Schemes
Here’s a look at the current rates for major small savings schemes that will continue unchanged through the October–December 2025 quarter:
Public Provident Fund (PPF): 7.1%
Senior Citizens Savings Scheme (SCSS): 8.2%
National Savings Certificate (NSC): 7.7%
Kisan Vikas Patra (KVP): 7.5%, doubles money in 115 months
Post Office Monthly Income Scheme (MIS): 7.4%
Post Office Time Deposit:
1 year – 6.9%
2 years – 7.0%
3 years – 7.1%
5 years – 7.5%
Post Office Recurring Deposit (RD): 6.7%
Post Office Savings Account (POSA): 4%
Sukanya Samriddhi Yojana (SSY): 8.2%
The SSY and SCSS rates continue to remain the highest among all schemes, beating even most bank fixed deposit rates.
How Are These Rates Decided?
The interest rates for these schemes are linked to government bond (G-Sec) yields.
The Shyamala Gopinath Committee, formed in 2010, had recommended that rates should be reviewed every quarter based on G-Sec performance, plus a small margin.
However, in recent quarters, the government has preferred to maintain stability in returns, keeping rates unchanged despite fluctuations in bond yields.
What This Means for Investors
For savers, the unchanged rates mean steady and predictable returns on their small savings investments.
While new investors might hope for higher rates, the government’s focus on consistency ensures low-risk and reliable returns — especially for senior citizens and long-term savers.
