New Delhi: The government has decided to maintain the existing interest rates on small-savings schemes for the October–December 2025 quarter. The Department of Economic Affairs issued a notification confirming that there would be no revisions for this three-month period. This decision means that savers relying on these schemes will continue to earn the same returns as in the previous quarter.
Key Rates That Remain the Same
For the Public Provident Fund (PPF), one of the most popular long-term savings options, the interest rate continues at 7.1 percent. The Sukanya Samriddhi Yojana (SSY), designed to encourage savings for the girl child, stays at 8.2 percent. A three-year term deposit under the small-savings framework also holds steady at 7.1 percent.
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The Post Office Savings Deposit Scheme, which provides basic savings access across India, remains unchanged at 4.0 percent. The Kisan Vikas Patra (KVP), a traditional small-savings product that doubles money over a fixed maturity period, will keep its interest rate at 7.5 percent, with the maturity period set at 115 months, or roughly 9 years and 7 months.
The National Savings Certificate (NSC), a widely used fixed-return instrument, stays at 7.7 percent. Meanwhile, the Post Office Monthly Income Scheme (MIS), often chosen by retirees for regular income, will continue at 7.4 percent. These unchanged rates will apply from October 1 to December 31, 2025.
Why This Matters for Savers
Small-savings schemes play a critical role in household finance across India. They are considered safe because they are backed by the government, and they offer predictable returns, making them attractive to conservative investors, retirees, and those looking for steady income. Products like PPF and NSC are also tax-efficient, which adds to their appeal.
The decision to keep rates steady reflects the government’s approach of ensuring stability in the financial system. At a time when inflation and interest rates are closely watched, leaving small-savings rates unchanged provides clarity and consistency for savers. For households that depend on these instruments for long-term goals, such as education, retirement, or marriage expenses, the move ensures that their expected returns remain intact for the next quarter.
Broader Impact
Beyond individual savers, small-savings rates influence the broader financial ecosystem. Banks, for instance, often look at these government-backed schemes when setting their own deposit rates. By maintaining stability in small-savings returns, the government indirectly impacts how competitive banks need to be with their fixed deposit offerings.
In effect, the unchanged rates create a steady environment for both small investors and the financial sector. For the October–December 2025 quarter, those invested in schemes like PPF, SSY, NSC, and KVP will continue to earn the same returns without any disruptions or adjustments to their financial plans.
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