The Finance Ministry on Tuesday left interest rates unchanged for Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS) and various other small savings schemes. The rates have been kept unchanged for the seventh straight quarter now.
“The rates of interest on various Small Savings Schemes for the third quarter of FY 2025-26, starting from 1st October, 2025 and ending on 31st December, 2025 shall remain unchanged from those notified for the second quarter (1st July, 2025 to 30th September, 2025) of FY 2025-26,” the finance ministry said in a notification.
Interest rates on small savings schemes for the October-December 2025 period
Public Provident Fund (PPF): It is considered a safe, long-term savings plan best suited for retirement planning. PPF currently earns interest rate of 7.1%.
Senior Citizen Savings Scheme (SCSS): As the name suggests, the scheme is for senior citizens. Backed by the government, SCSS – which currently offers interest rate of 8.2% – ensures regular income for seniors after retirement.
Sukanya Samriddhi Yojana (SSY): SSY, which offers one of the highest returns among small savings schemes, is a savings plan to build a secure future for the girl child. It currently carries an interest rate of 8.2%.
National Savings Certificate (NSC): A fixed-return option for safe investors who don’t want to take risks. The scheme comes with guaranteed returns and offers an interest rate at 7.7%.
Post Office Monthly Income Scheme (POMIS): The scheme is considered as a tool to secure steady monthly income, making it useful for regular expenses. Its current interest rate stands at 7.4%.
Kisan Vikas Patra (KVP): It is a government-backed scheme, which offers a decent interest rate of 7.5%.
FD rates
1-year fixed deposit: This short-term FD earns an interest rate of 6.9%, making it suitable for conservative investors.
2-year fixed deposit: This FD offers an interest rate of 7.0% and provides a balance between safety, returns and liquidity.
3-year fixed deposit: The 3-year FD offers a slightly higher interest rate of 7.1% for those willing to lock in their money for a longer period.
5-year fixed deposit: The FD plan offers a competitive interest rate of 7.5%, making it ideal for long-term investment.
Recurring deposit (RD)
5-year recurring deposit: The RD allows you to deposit a fixed amount every month for five years and earn an interest rate of 6.7%.
All these small savings schemes are government-backed schemes, launched with an aim to promote savings among people earning low to moderate incomes. These savings schemes, offered through banks and post office branches, are considered safe. Interest rates on PPF, NSC, SSY, SCSS, Post Office Monthly Income Scheme (POMIS), FDs and RDs are reviewed quarterly by the government. The rates for some of these investment instruments are influenced by the yield trends in the secondary market for government securities.