Investment in small savings schemes will give you a safe and steady return. If you plan to invest in these schemes, you should know their interest rates and which scheme provides the highest interest rate and return.

On September 30, 2025, the interest rates of post office small savings schemes, like Public Provident Fund (PPF) and the National Savings Certificate (NSC), were reviewed by the Finance Ministry, but the rates were unchanged. Hence, the old rates would still remain in place for the quarter of October to December 2025.

The importance of this decision is due to the government not slashing the interest rates for several schemes, like the Sukanya Samriddhi Account (SSA) and the Senior Citizen Savings Scheme (SCSS). This was true even after three cuts in the repo rate this year. Now, the government has solemnly announced the interest rates for all small savings schemes.

Which Scheme Gives the Highest Interest Rate?

As per the latest update from the government, Sukanya Samriddhi Yojana (SSY) gives the highest interest rate of 8.2% among all small savings schemes.

Interest Rates of Other Schemes

Savings Deposit: 4%

1-Year Term Deposit: 6.9%

2-Year Term Deposit: 7%

3-Year Term Deposit: 7.1%

5-Year Term Deposit: 7.5%

Recurring Deposit (5-Year): 6.7%

Senior Citizens Savings Scheme (SCSS): 8.2%

Monthly Income Scheme (MIS): 7.4%

National Savings Certificate (NSC): 7.7%

Public Provident Fund (PPF): 7.1%

Kisan Vikas Patra (KVP – 115 Months): 7.5%

The government said that these rates will stay the same for the October to December 2025 quarter.

Tax Benefits of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is under the EEE (Exempt-Exempt-Exempt) rule. This means the money you invest, the interest you earn, and the amount you get at maturity are all tax-free under Section 80C of the Income Tax Act.

Who Can Open This Account?

Any parent or guardian can open this account for a girl child below 10 years old.

Main Features of Sukanya Samriddhi Yojana

  • Minimum deposit: ₹250 per year
  • Maximum deposit: ₹1.5 lakh per year
  • Where to open: Post offices or approved banks (like SBI, HDFC, ICICI)

Use: For higher education or marriage of the girl

Premature closure: Allowed if the girl marries after 18 years

Transfer: Can move between post offices and banks in India

Maturity period: 21 years from the date of opening the account