The government has decided to keep interest rates on popular small savings schemes such as the Public Provident Fund (PPF) and the National Savings Certificate (NSC) unchanged for the October–December 2025 quarter, marking the seventh consecutive quarter of status quo.
Rates Remain Steady Across Schemes
According to the Finance Ministry’s notification, the PPF will continue to earn 7.1%, while the post office savings deposit remains at 4%. The Sukanya Samriddhi Yojana will maintain its higher return of 8.2%, and the three-year term deposit stays at 7.1%.
Other schemes also see no change: the NSC continues at 7.7%, the Kisan Vikas Patra (KVP) offers 7.5% with a maturity of 115 months, and the Monthly Income Scheme holds steady at 7.4%.
The last revision in small savings rates was announced in Q4 of FY24, and since then, the rates have been kept steady every quarter.
Why It Matters for Investors
Small savings schemes, mostly offered via post offices and banks, are among the most trusted risk-free investment options for Indian households. Stability in rates helps investors plan long-term goals such as retirement, children’s education, and wealth preservation without the uncertainty of sudden interest rate cuts.
The government reviews and notifies interest rates on these schemes every quarter, based on bond yields and market trends.
Summary
The government has kept interest rates on small savings schemes like PPF (7.1%), NSC (7.7%), and Sukanya Samriddhi (8.2%) unchanged for October–December 2025, marking the seventh consecutive quarter of status quo. The move ensures stability for investors relying on these schemes for long-term, low-risk financial planning.
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