Small Savings Schemes Interest Rates Remain Unchanged for July–September 2025 (Q2 FY26)
The Government of India confirms stable interest rates for various small savings schemes. Rates will not change for the July to September quarter of the financial year 2025-26 (Q2 FY26). This offers vital stability to millions of Indian investors. They rely on these schemes for secure and steady returns. Popular options like the Public Provident Fund (PPF) and National Savings Certificate (NSC) keep their current rates. PPF offers 7.1% and NSC offers 7.7%. This marks the sixth quarter in a row without any rate changes.
Current Interest Rates for Q2 FY26
For Q2 FY26, the government maintains existing rates across all small savings schemes. The Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) both offer an attractive 8.2% interest. The Post Office Monthly Income Scheme (POMIS) stays at 7.4%. The Kisan Vikas Patra (KVP) holds at 7.5%, maturing in 115 months. The Post Office Savings Account remains at 4%. One-year, two-year, and three-year time deposits offer 6.9%, 7.0%, and 7.1% respectively. The five-year time deposit stands at 7.5%, and the five-year recurring deposit at 6.7%.
Why Rates Remain Stable
The Ministry of Finance reviews these rates quarterly. They follow recommendations from the Shyamala Gopinath Committee. This committee considers current government securities (G-Secs) yields and adds a fixed spread. Despite recent economic changes, the government chose not to lower rates this quarter. For example, the RBI repo rate saw a significant 100 basis points reduction in 2025, and G-sec yields also fell. This decision shows a focus on keeping financial stability and investor trust. It especially helps low-risk and long-term savers.
Historical Context & Key Schemes
The PPF interest rate (7.1%) has held steady since April 2020. Historically, PPF offered up to 12% interest between 1986 and 1999. Similarly, the NSC rate (7.7%) has stayed consistent since April 2023 (Q1 FY24). These schemes remain crucial parts of India’s small savings options. Investors prefer them for their tax benefits and guaranteed returns.
Official Announcement & Future Outlook
The Department of Economic Affairs (DEA), under the Ministry of Finance, issued the official Q2 FY26 rates notification on June 30, 2025. With this news, savers and investors can confidently plan their finances. They know their returns from these schemes will remain stable, even in a changing economy. The next rate review will happen at the end of September 2025. That review will set rates for the October–December quarter.
