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 not made any change in the interest rates of small savings schemes.
Let us tell you that the interest rates of these schemes are reviewed every three months. There were speculations that the government might reduce the rates this time. However, the government has proved all those speculations wrong by keeping the rates unchanged.
You will continue to get the same interest rates as before from July 1, 2025, to September 30, 2025.
This is the sixth consecutive quarter in which the government has not changed the interest rates of small savings schemes. This means that the current interest rates will remain the same for the second quarter of the financial year 2025–26. This information has been shared in a notification issued by the Ministry of Finance.
No Change in Interest Rates of Small Savings Schemes
If you invest in post office savings schemes like PPF, NSC, SCSS, or Sukanya Samriddhi Yojana, then there is important news for you. The central government has not made any changes in the interest rates for these small savings schemes for the July to September 2025 quarter. These interest rates are reviewed every three months. Many people expected a rate cut this time, but the government has kept the rates unchanged.
This is the sixth time in a row that the interest rates have remained the same. It means the rates from April to June 2025 quarter will continue for the second quarter of the current financial year. This update has been confirmed through a notification from the Ministry of Finance.
Interest Rates on Different Schemes
Here are the current interest rates:
- Public Provident Fund (PPF) – 7.1%
- National Savings Certificate (NSC) – 7.7%
- Senior Citizen Savings Scheme (SCSS) – 8.2%
- Sukanya Samriddhi Yojana (SSY) – 8.2%
- 3-Year Term Deposit – 7.1%
- Post Office Savings Account – 4%
- Kisan Vikas Patra (maturity in 115 months) – 7.5%
- Monthly Income Scheme (MIS) – 7.4%
These schemes continue to offer higher returns compared to many bank fixed deposits and are considered safe investment options.
Why No Rate Cut Despite Falling Repo Rate?
So far this year, the Reserve Bank of India has cut the repo rate by a total of 1%. It was reduced by 0.25% in February, 0.25% in April, and 0.50% in June. This also led to a fall in government bond yields. For example, the yield on 10-year government bonds dropped from 6.779% on January 1, 2025, to 6.283% on June 25, 2025.
#RBIPOlicy | RBI #MonetaryPolicy Committee cuts #RepoRate by 50 bps to 5.50%. The policy #RepoRate is now at lowest level in nearly 3 years pic.twitter.com/RQkZU8mXDU
— CNBC-TV18 (@CNBCTV18Live) June 6, 2025
Due to this, many experts thought the interest rates of small savings schemes would also be reduced. But the government did not make any changes, keeping the public interest in mind.
Post office interest rates are usually decided based on the recommendations of the Shyamala Gopinath Committee. As per the committee, the rates should be 25 to 100 basis points higher than the government bond yields for the same period. However, the government is not bound to follow this rule and sometimes keeps the rates unchanged to support common investors.