PPF, SCSS, Sukanya Samriddhi Interest Rates May Change Soon: Finance Ministry to Review on September 30
The Ministry of Finance will announce the interest rates for small savings schemes for the October–December 2025 quarter on September 30. Popular schemes such as the Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and several post office deposit options fall under this review.
The government revises these interest rates every quarter, based on economic trends, bond yields, and inflationary pressures. While the rates remained unchanged during the July–September quarter, investors are keenly awaiting whether there will be any revisions this time.
Current Interest Rates on Popular Schemes
Public Provident Fund (PPF)
The PPF remains one of the most trusted long-term savings options for households. It currently offers 7.1% annual interest, compounded yearly. With a 15-year maturity period, PPF is often chosen for children’s education, retirement planning, and other long-term goals.
National Savings Certificate (NSC)
The NSC offers an interest rate of 7.7% per annum. Popular among small investors, this scheme allows people to invest modest amounts regularly while earning attractive returns. Interest is compounded annually but paid at maturity.
Sukanya Samriddhi Yojana (SSY)
Designed exclusively for the financial security of girl children, SSY currently offers 8.2% annual interest, compounded yearly. Parents or guardians can open this account for their daughters below the age of 10, and it has become one of the most rewarding long-term savings instruments for families.
Senior Citizens Savings Scheme (SCSS)
A preferred option for retirees, SCSS provides 8.2% annual interest, which is disbursed on a quarterly basis. It is considered one of the most reliable schemes for generating regular income post-retirement.
Post Office Monthly Income Scheme (POMIS)
For individuals seeking stable monthly income, POMIS offers 7.4% interest per annum, paid directly into the subscriber’s account each month. This makes it a popular choice for pensioners and individuals looking for predictable cash flow.
Kisan Vikas Patra (KVP)
KVP is designed to double the investment within a fixed tenure, currently offering an annual interest rate of 7.5%. The rate has remained unchanged since April 2023. It is widely used by small investors seeking safe and assured returns.
Post Office Time Deposit (FD/TD)
Post office time deposits are available in multiple tenures. At present, a three-year TD fetches 7.1%, while a five-year TD earns 7.5%. With guaranteed returns and government backing, these deposits remain a secure option for conservative investors.
Post Office Savings Account (POSA)
The most basic savings product, POSA continues to offer 4% annual interest. Remarkably, this rate has been unchanged since December 1, 2011, making it a stable, if modest, savings option for households.
Why This Review Matters
Small savings schemes are critical for India’s middle-class and retired population, offering a balance of safety, assured returns, and tax benefits. With inflationary pressures and changing bond yields, the Finance Ministry’s decision on September 30 will influence millions of investors.
A hike in rates would bring relief to savers, particularly retirees relying on SCSS or POMIS for steady income. Conversely, unchanged or reduced rates may push more investors toward market-linked instruments such as mutual funds or equities.
Bottom Line
On September 30, 2025, the government will announce whether interest rates for schemes like PPF, SCSS, and Sukanya Samriddhi will change for the October–December quarter. Investors should watch closely, as even small adjustments can significantly impact long-term returns.
For now, the rates remain attractive, and small savings schemes continue to serve as a cornerstone of financial security for millions of Indian families.
