Small savings schemes: PPF, SSY, SCSS, Post Office FD, NSC interest rates unchanged for Q2 FY26
Small savings schemes like PPF, SCSS, and Sukanya Samriddhi will continue offering the same interest rates for the July-September quarter of FY26. The government has opted for stability, keeping rates unchanged despite market fluctuations.
- Jun 30, 2025,
- Updated Jun 30, 2025 6:17 PM IST
Interest rates on India’s popular small savings schemes will remain unchanged for the July-September quarter of FY 2025-26, according to a notification from the Finance Ministry. This means savers relying on instruments like the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Sukanya Samriddhi Yojana (SSY) will see no changes in their returns in the second quarter of the fiscal year.
The PPF, a government-backed scheme known for its tax benefits and long-term savings potential, will continue to offer the same interest rate as in the previous quarter. Meanwhile, SCSS and the Sukanya Samriddhi Scheme will maintain their attractive annual rate of 8.2%, providing a secure avenue for senior citizens and promoting savings for the girl child’s future.
Investors in the National Savings Certificate (NSC) will keep earning 7.7%, while the Post Office Monthly Income Scheme (POMIS) holds steady at 7.4%. The Kisan Vikas Patra (KVP) also remains unchanged, offering a 7.5% rate with a maturity period of 115 months. Post Office savings deposits will continue to yield 4%.
Moreover, the five-year Recurring Deposit (RD) scheme allows investors to make regular monthly contributions and offers an interest rate of 6.7%. These small savings schemes ensure guaranteed returns, with interest compounded on a monthly, quarterly, or annual basis based on the chosen scheme.
These small savings schemes, managed primarily through post offices and banks, are key investment tools for millions of Indians seeking safe, fixed-income returns. The government reviews their rates every quarter, using a formula linked to yields on government securities, as recommended by the Shyamala Gopinath Committee. However, despite fluctuations in market rates, the Centre has chosen to keep these rates stable for now.
“The rates of interest on various small savings schemes for the second quarter of FY2025-26 starting from 1st July, 2025 and ending on 30th September, 2025, shall remain unchanged from those notified for the fourth quarter (1st January, 2025 to 31st March, 2025) of FY 2024-25,” the Department of Economic Affairs (DEA) said in a notification issued on Friday, March 28.
Savings Schemes Interest Rates for July-September 2025
| Post Office Savings Account | 4% |
| Post Office Recurring Deposit | 6.7% |
| Post Office Monthly Income Scheme | 7.4% |
| Post Office Time Deposit (1 year) | 6.9% |
| Post Office Time Deposit (2 years) | 7% |
| Post Office Time Deposit (3 years) | 7.1% |
| Post Office Time Deposit (5 years) | 7.5% |
| Kisan Vikas Patra (KVP) | 7.5% |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana | 8.2% |
| National Savings Certificate | 7.7% |
| Senior Citizens’ Saving Scheme (SCSS) | 8.2% |
Interest rates on India’s popular small savings schemes will remain unchanged for the July-September quarter of FY 2025-26, according to a notification from the Finance Ministry. This means savers relying on instruments like the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Sukanya Samriddhi Yojana (SSY) will see no changes in their returns in the second quarter of the fiscal year.
The PPF, a government-backed scheme known for its tax benefits and long-term savings potential, will continue to offer the same interest rate as in the previous quarter. Meanwhile, SCSS and the Sukanya Samriddhi Scheme will maintain their attractive annual rate of 8.2%, providing a secure avenue for senior citizens and promoting savings for the girl child’s future.
Investors in the National Savings Certificate (NSC) will keep earning 7.7%, while the Post Office Monthly Income Scheme (POMIS) holds steady at 7.4%. The Kisan Vikas Patra (KVP) also remains unchanged, offering a 7.5% rate with a maturity period of 115 months. Post Office savings deposits will continue to yield 4%.
Moreover, the five-year Recurring Deposit (RD) scheme allows investors to make regular monthly contributions and offers an interest rate of 6.7%. These small savings schemes ensure guaranteed returns, with interest compounded on a monthly, quarterly, or annual basis based on the chosen scheme.
These small savings schemes, managed primarily through post offices and banks, are key investment tools for millions of Indians seeking safe, fixed-income returns. The government reviews their rates every quarter, using a formula linked to yields on government securities, as recommended by the Shyamala Gopinath Committee. However, despite fluctuations in market rates, the Centre has chosen to keep these rates stable for now.
“The rates of interest on various small savings schemes for the second quarter of FY2025-26 starting from 1st July, 2025 and ending on 30th September, 2025, shall remain unchanged from those notified for the fourth quarter (1st January, 2025 to 31st March, 2025) of FY 2024-25,” the Department of Economic Affairs (DEA) said in a notification issued on Friday, March 28.
Savings Schemes Interest Rates for July-September 2025
| Post Office Savings Account | 4% |
| Post Office Recurring Deposit | 6.7% |
| Post Office Monthly Income Scheme | 7.4% |
| Post Office Time Deposit (1 year) | 6.9% |
| Post Office Time Deposit (2 years) | 7% |
| Post Office Time Deposit (3 years) | 7.1% |
| Post Office Time Deposit (5 years) | 7.5% |
| Kisan Vikas Patra (KVP) | 7.5% |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana | 8.2% |
| National Savings Certificate | 7.7% |
| Senior Citizens’ Saving Scheme (SCSS) | 8.2% |