Small savings investors have been dealt a severe blow, as the government has again not increased interest rates.
Savings Schemes Interest Rates: A major update on small savings schemes. The government has not changed the interest rates on schemes like PPF, NSC, Sukanya Samriddhi Yojana, Kisan Vikas Patra, and Post Office Savings Schemes. This is the seventh consecutive quarter for which rates have remained unchanged for the October-December 2025 quarter. Investors will still receive interest ranging from 7.1% to 8.2%.
Savings Schemes Interest Rates: The government has once again not changed the interest rates on small savings schemes. The Finance Ministry issued a notification on Tuesday stating that for the third quarter of the financial year 2025-26 (October 1 to December 31, 2025), the same rates will apply to all schemes as in the previous quarter (July-September 2025). This is the seventh consecutive quarter in which interest rates have remained unchanged.
Sukanya Samriddhi and Fixed Deposit Rates
According to a notification from the Ministry of Finance, the Sukanya Samriddhi Yojana (SSY) will offer an interest rate of 8.2%. The three-year fixed deposit rate will remain at 7.1% this quarter. The government has not announced any increase or decrease in these schemes.
Status of PPF and Post Office Savings Accounts
The interest rate on the popular Public Provident Fund (PPF) scheme will remain unchanged at 7.1%. The rate on Post Office Savings Accounts will also remain at 4%. This decision is being seen as both a relief and a disappointment for millions of small investors, who were expecting an increase in interest rates.
Kisan Vikas Patra and NSC
Investors on the Kisan Vikas Patra (KVP) will earn 7.5% interest and mature in 115 months. The National Savings Certificate (NSC) interest rate will remain unchanged at 7.7% for the October-December 2025 period. These schemes are considered among the safest options for small investors and those in rural areas.
Monthly Income Scheme Rates
The Monthly Income Scheme (MIS) remains unchanged. Investors will receive 7.4% interest on this scheme in the current quarter, similar to the July-September period. This scheme is popular among investors seeking a fixed monthly income.
Seventh Consecutive Quarter Unchanged
It is noteworthy that the government has kept interest rates unchanged for the seventh consecutive quarter. The last rate revision was for the fourth quarter of 2023-24. Small savings schemes are primarily administered by post offices and banks and are attractive options for salaried individuals, senior citizens, and middle-class investors.
Investors Disappointed
By keeping interest rates on small savings schemes stable, the government has guaranteed investors secure returns. However, those hoping for a rate hike amid rising inflation have been disappointed. Investors should consider diversifying their financial planning.
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