Small Savings Schemes: The central government has made no changes to the interest rates for small savings schemes for the third quarter of financial year 2026.
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Small Savings Scheme Interest Rates: The Indian government has announced the interest rates for small savings schemes, including the Public Provident Fund (PPF), National Savings Certificates (NSC), and Senior Citizen Savings Scheme (SCSS), for the October-December 2025 quarter. The government has maintained the interest rates for these post office-based small savings schemes at their current levels. This means that despite inflation and the recent reduction in the repo rate, the government has made no changes to the interest rates for these schemes.
What are the interest rates?
Under this government decision, the Senior Citizen Savings Scheme (SCSS) will offer an annual interest rate of 8.2% for the third quarter of financial year 2025-26, while the Monthly Income Account Scheme will offer 7.4% annual interest. The National Savings Certificate (NSC) will have an annual interest rate of 7.7%, the Public Provident Fund (PPF) will offer 7.1%, and the Kisan Vikas Patra (KVP) will offer 7.5%. The Sukanya Samriddhi Yojana (SSA) will continue to offer an annual interest rate of 8.2%.
Interest rates remain unchanged despite repo rate cuts and lower inflation
It’s worth noting that the Reserve Bank of India’s benchmark repo rate was 6.5 percent in January this year, and has been reduced by 1 percentage point so far. The RBI cut the rate by 0.25 percentage points in February and April, and by a larger 0.5 percentage points in June. Currently, the repo rate stands at 5.5 percent. Meanwhile, retail inflation was recorded at 2.07 percent in August. Furthermore, the yield on 10-year government securities has fallen from around 6.78 percent to 6.48 percent since January.
When was the last time the rates were changed?
It’s worth noting that the interest rates for small savings schemes were last revised in January-March 2024. They have remained unchanged since then. At that time, the government increased the interest rate for three-year fixed deposits (FDs) from 7.0 percent to 7.1 percent, and the interest rate for the Sukanya Samriddhi Yojana from 8.0 percent to 8.2 percent. During that period, the interest rates for most other schemes remained unchanged.
