If you invest in post office savings schemes like PPF, NSC, SCSS, or Sukanya Samriddhi Yojana, then there is an important update for you. The central government has kept the interest rates of small savings schemes unchanged.
These interest rates are reviewed every three months, and it was expected that the government might reduce them this time.
However, putting all such expectations to rest, no changes have been made. This means from July 1, 2025, to September 30, 2025, the same interest rates as before will apply.
This marks the sixth quarter in a row that the government has kept the interest rates unchanged on small savings schemes. So, the current rates will continue during the second quarter of the financial year 2025-26. This update has been shared in a notification issued by the Finance Ministry.
Check the Latest Interest Rates
The interest rate for Public Provident Fund (PPF) remains at 7.1%. The National Savings Certificate (NSC) continues to offer 7.7%. Both the Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) offer 8.2% interest. These are the same as the rates for the April–June 2025 quarter.
Here are some other interest rates:
3-year term deposit: 7.1%
Post office savings deposit: 4%
Kisan Vikas Patra (matures in 115 months): 7.5%
Monthly Income Scheme: 7.4%
NSC: 7.7%
SCSS: 8.2%
Repo Rate Cut by RBI
The Reserve Bank of India has reduced the repo rate by 1% so far in 2025 — by 0.25% in February, another 0.25% in April, and 0.50% in June.
This has caused bond yields to fall as well. For instance, the yield on 10-year government bonds dropped from 6.779% on January 1, 2025, to 6.283% on June 25, 2025.
Based on this, there was speculation that the government might lower interest rates on small savings schemes. But no such reduction has taken place.
How Post Office Interest Rates Are Decided
The government reviews the interest rates on post office schemes every quarter. These rates are usually set based on the recommendations of the Shyamala Gopinath Committee.
According to the committee, the interest rates on small savings schemes should be 25 to 100 basis points higher than the yield on government bonds of similar maturity. This helps keep these schemes attractive for investors.
However, the government is not obligated to follow these recommendations strictly. At times, it sets the rates independently, keeping in mind the needs and benefits of the general public.
