The government has decided to keep interest rates on small savings schemes unchanged for the second quarter of the fiscal year 2025-26 (July 1 to September 30, 2025).
This marks the sixth consecutive quarter of stable rates, reflecting government confidence and providing reassurance to investors.
These schemes include:
Public Provident Fund (PPF)
Sukanya Samriddhi Yojana (SSY)
National Savings Certificate (NSC)
Kisan Vikas Patra (KVP)
Senior Citizen Savings Scheme (SCSS)
These schemes are mainly targeted at the middle class, rural populations, women, and senior citizens, offering safe and reliable investment options.
Interest Rates and Benefits
The annual interest rates for these schemes are as follows:
PPF: 7.1%
SSY and SCSS: 8.2%
NSC: 7.7%
KVP: 7.5%
Interest is calculated using annual compounding, which can provide higher returns over time. These schemes not only offer regular
and assured returns but also tax benefits under Section 80C of the Income Tax Act, making them more attractive for small investors.
The Ministry of Finance will review these rates next on September 30, 2025, which will determine whether they remain unchanged for the following quarter.
Investors can use this review to make informed decisions based on the current economic scenario, inflation trends, and government policies.
Financial experts expect that these interest rates are likely to remain stable unless there is an unexpected change in the economy.
The current stability sends a clear signal that small savings schemes continue to be safe and reliable investment options.