The government has kept interest rates on small savings schemes unchanged for the second quarter of fiscal year 2025-26 (July 1 to September 30, 2025). This is the sixth consecutive quarter in which the government has kept interest rates unchanged on these schemes, signaling stability and confidence for investors. These schemes include the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), and Senior Citizen Savings Scheme (SCSS), among others.
Annual interest rates apply to PPF at 7.1%, Sukanya Samriddhi Yojana and Senior Citizen Savings Scheme at 8.2%, National Savings Certificates at 7.7%, and Kisan Vikas Patra at 7.5%. These schemes are specifically targeted at the middle class, rural areas, women, and senior citizens and are considered safe investments. For small investors, these schemes offer the option of regular and assured returns.
Interest is calculated on these small savings schemes based on annual compounding, providing greater returns to investors. This government policy aims to encourage savings and provide financial security to the general public.
The Ministry of Finance will next review these interest rates on September 30, 2025, which will determine whether these rates will remain unchanged for the following quarter. This review will provide clarity to investors regarding their savings plans and enable them to make informed decisions. The government’s actions will remain to be seen based on current economic conditions, inflation levels, and policymakers’ guidance. For now, the stability in interest rates sends the message that domestic savings schemes will continue to be a safe and reliable option for investors.
These small savings schemes also offer tax benefits under Section 80C of the Income Tax Act, making them even more attractive. Financial experts believe that these interest rates are likely to remain stable unless there is an unexpected change in the economic situation.
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