The Indian government has decided to keep interest rates for several small savings schemes unchanged for the July–September quarter of the financial year 2025–26. This marks the sixth quarter in a row where no changes have been made to these rates.
These schemes include popular savings options like the Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana (SSY). The official announcement came from the Ministry of Finance on Monday, 30 June 2025.
Let’s break down what this means for you in simple terms.
What Did the Government Say?
The Ministry of Finance released a notification stating:
The rates of interest on various Small Savings Schemes for the second quarter of FY 2025-26 (1st July to 30th September 2025) shall remain unchanged from the first quarter (April to June 2025).
This means if you’re already saving through these schemes or planning to invest, the interest rates will remain the same as they were during the last quarter.
Why Are These Schemes Important?
Small savings schemes are safe and reliable investment options mostly run by post offices and banks. These schemes are especially popular among middle-class and lower-income households, senior citizens, and people looking for guaranteed returns without market risk.
Even though the Reserve Bank of India (RBI) has been cutting key policy rates recently, the government has chosen not to lower interest rates on these schemes. This move seems to be aimed at encouraging people to save and offer stability in uncertain times.
Interest Rates (July–September 2025):
1. Public Provident Fund (PPF)
✅ Interest Rate: 7.1% per annum
🔒 Lock-in Period: 15 years
📌 Tax benefits available under Section 80C
2. Sukanya Samriddhi Yojana (SSY)
✅ Interest Rate: 8.2% per annum
👧 For girl children under 10 years
🏦 Maturity: 21 years or upon marriage after 18
3. National Savings Certificate (NSC)
✅ Interest Rate: 7.7% per annum
📆 Maturity: 5 years
💡 Good for long-term fixed savings with tax benefits
4. Three-Year Term Deposit
✅ Interest Rate: 7.1% per annum
📌 Lock-in for 3 years
✔️ Fixed returns with post office guarantee
5. Post Office Savings Deposit Account
✅ Interest Rate: 4% per annum
🔁 Similar to a regular bank savings account
✔️ No lock-in period
6. Kisan Vikas Patra (KVP)
✅ Interest Rate: 7.5% per annum
🕒 Maturity: 115 months (9 years and 7 months)
📈 Investment doubles at maturity
7. Monthly Income Scheme (MIS)
✅ Interest Rate: 7.4% per annum
💸 Fixed monthly income
💼 Ideal for retirees or people seeking steady earnings
Why the Rates Remain Unchanged
The government revises small savings scheme interest rates every quarter, based on various economic factors. However, rates have not changed since the January–March quarter of 2023–24.
Despite the RBI cutting interest rates to support economic growth, the government has likely kept these savings rates unchanged to:
Attract household savings
Provide guaranteed income options
Offer alternatives to risky investments like the stock market
Should You Still Invest in These Schemes?
Yes — if you’re looking for safe and long-term savings with stable returns, these schemes are a good option.
For example:
PPF is great for long-term retirement planning.
SSY is ideal if you’re saving for a daughter’s future.
NSC and KVP are solid for fixed returns over a few years.
MIS is useful for regular monthly income.
Also, some of these schemes offer tax-saving benefits, especially under Section 80C of the Income Tax Act.
Final Thoughts
By keeping interest rates unchanged, the government is sending a clear message: security and consistency in savings options matter, especially when markets are volatile or uncertain.
So if you’re a cautious investor, a salaried individual, or someone planning for your child’s future — these schemes can still work well for you.
Just make sure to match the scheme to your financial goals and timelines!
If you like this article then please share this article with your friends.,