Small Savings Schemes Interest Rates Remain Stable, 8.2% Interest Rates Announced on PPF and Sukanya Samriddhi Yojana

Government Keeps Small Savings Scheme Rates Unchanged for Q3 FY26, PPF at 7.1% and Sukanya Samriddhi at 8.2%

Small Savings Schemes Interest Rates (October 2, 2025): The government has announced that interest rates on small savings schemes will remain unchanged for the third quarter of FY 2025-26 (October to December 2025). This decision provides continuity and stability for millions of investors, especially senior citizens and middle-class families who rely heavily on these schemes for secure returns.

Key Interest Rates on Popular Schemes

As per the latest notification, the interest rates across major small savings schemes remain the same as the previous quarter:

• Public Provident Fund (PPF): 7.1%

• Sukanya Samriddhi Yojana (SSY): 8.2%

• Senior Citizens’ Savings Scheme (SCSS): 8.2%

• National Savings Certificate (NSC): 7.7%

• Kisan Vikas Patra (KVP): 7.5%

• Post Office Monthly Income Scheme (POMIS): 7.4%

• Five-Year Fixed Deposit: 7.5%

• Three-Year Fixed Deposit: 7.1%

The Sukanya Samriddhi Yojana and Senior Citizens’ Savings Scheme continue to offer the highest interest rate at 8.2%, making them the most attractive options for long-term savers and retirees.

Sixth Consecutive Quarter of Stability

This is the sixth straight quarter where the government has chosen not to revise interest rates on small savings schemes. The move is seen as a measure to protect household savings and offer investors predictable returns, even amid fluctuations in the broader financial market.

Experts believe that by keeping the rates steady, the government is ensuring confidence among savers, particularly those dependent on guaranteed income sources such as pensioners, senior citizens, and middle-income families.

Why No Change Despite Rate Cuts

Interestingly, the decision comes despite the Monetary Policy Committee (MPC) cutting the repo rate three times this year to boost economic growth. Normally, lower repo rates could translate into lower returns on government-backed saving schemes. However, the finance ministry has opted to hold rates steady to maintain investor trust and support small savers.

Officials highlight that India is currently witnessing a stronger rupee and encouraging signs of economic growth, which allows the government to balance financial stability with investor protection.

Safe Haven for Long-Term Savings

With equity markets remaining volatile and inflation concerns still present, small savings schemes continue to act as a safe haven for conservative investors. These schemes not only provide government-backed security but also offer tax benefits under Section 80C of the Income Tax Act, making them doubly attractive for salaried individuals and risk-averse households.

Financial experts suggest that investors looking for long-term guaranteed returns—whether for retirement, children’s education, or marriage planning—should continue to allocate funds to these schemes, particularly PPF and Sukanya Samriddhi Yojana.

Key Highlights at a Glance

• Interest rates on all small savings schemes remain unchanged for Q3 FY26.

• PPF at 7.1%, Sukanya Samriddhi and SCSS at 8.2% continue to be top earners.

• NSC at 7.7%, KVP at 7.5%, and POMIS at 7.4% provide steady mid-range returns.

• Decision ensures sixth consecutive quarter of rate stability.

• Move benefits retirees, pensioners, and middle-class families.

Outlook

Analysts say the government’s decision reinforces the role of small savings schemes as an essential pillar of household savings in India. With steady interest rates and reliable returns, these schemes are expected to remain a preferred choice for traditional investors in the coming quarters as well.