Small Savings Schemes: Government Keeps Interest Rates Unchanged for Sixth Straight Quarter, Next Review on Sept 30

The Ministry of Finance has once again decided to maintain stability in the country’s most popular small savings schemes. For the second quarter of the financial year 2025–26 (July 1 to September 30, 2025), the government has kept interest rates unchanged across all schemes, providing relief and predictability to millions of small investors. This marks the sixth consecutive quarter where no revisions have been made.

Interest Rates on Popular Schemes Remain Steady

The unchanged rates apply to widely subscribed schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), and the Kisan Vikas Patra (KVP). These are some of the most trusted and secure investment options, particularly for middle-class households, senior citizens, rural families, and women.

The current annual interest rates are as follows:

• PPF: 7.1%

• Sukanya Samriddhi Yojana: 8.2%

• Senior Citizen Savings Scheme (SCSS): 8.2%

• National Savings Certificate (NSC): 7.7%

• Kisan Vikas Patra (KVP): 7.5%

These rates, coupled with government backing, continue to make small savings instruments a preferred choice for risk-averse investors seeking stable returns.

Why Stability Matters

Small savings schemes are designed to promote household savings and offer financial security through guaranteed returns. By keeping rates steady, the government signals continuity and confidence in these instruments, helping investors plan their finances without uncertainty.

Interest in these schemes is calculated on a compounded annual basis, allowing investors to benefit from long-term accumulation. For example, a PPF account not only offers 7.1% interest but also provides tax benefits under Section 80C of the Income Tax Act, making it one of the most attractive retirement-oriented investments.

Next Review on September 30, 2025

The Ministry of Finance will conduct its next quarterly review on September 30, 2025, when interest rates for the following quarter (October–December 2025) will be announced. The decision will be influenced by factors such as inflation trends, overall economic conditions, and monetary policy directions.

Until then, investors can be assured that their money in small savings schemes will continue to earn the same interest rates, offering consistency in financial planning.

Tax Benefits Add More Value

Most of these small savings schemes also provide income tax benefits, making them doubly beneficial. Investments in PPF, NSC, Sukanya Samriddhi Yojana, and other schemes are eligible for deductions under Section 80C, up to a limit of ₹1.5 lakh per year.

This dual advantage of stable returns and tax savings makes them especially appealing during times of economic uncertainty.

Experts’ Outlook

According to financial experts, the government is unlikely to alter interest rates significantly unless there are unexpected shifts in the economy. Inflation and growth numbers will play a decisive role in future reviews, but the current decision reinforces the perception that small savings schemes remain one of the safest and most reliable investment avenues in India.

Key Takeaways for Investors

• The government has kept small savings scheme interest rates unchanged for the July–September 2025 quarter.

• Rates remain at 7.1% for PPF, 8.2% for Sukanya Samriddhi Yojana and SCSS, 7.7% for NSC, and 7.5% for KVP.

• This is the sixth consecutive quarter of unchanged rates.

• The next interest rate update will be announced on September 30, 2025.

• These schemes provide compounded returns, tax benefits under Section 80C, and strong safety due to government backing.

For investors, the message is clear: small savings schemes continue to be a dependable choice for financial security, steady growth, and tax efficiency.