If you invest in Post Office Savings Schemes like PPF, NSC, SCSS, or Sukanya Samriddhi Yojana, then there is very important news for you. The Central Government has not made any changes in the interest rates of Small Savings Schemes. Let us tell you that the interest rates of these small savings schemes are reviewed every three months.
There were speculations that this time the central government may cut the interest rates, but the government has not made any changes in the interest rates of these schemes, proving all the speculations wrong. Overall, you will get the same interest rates from 1 July 2025 to 30 September 2025. This is a relief for millions of investors who want stable returns on their savings.
Sixth consecutive quarter
This is the sixth consecutive quarter when the government has not made any changes in the interest rates of these small savings schemes. This means that the current interest rates will remain the same even in the second quarter of the current financial year 2025-26. This information has been given in the notification issued by the Ministry of Finance. This stability will help investors plan their financial goals and assure them of a fixed return.
Know the new (or old) interest rates
After the government’s decision, the interest rates on these schemes will remain the same as before:
Public Provident Fund (PPF): You will get 7.1% interest on this. It is a popular option for those who invest for the long term.
National Savings Certificate (NSC):- The rate of 7.7% has been fixed on this. It is also considered a good option for tax savings.
Senior Citizen Savings Scheme (SCSS):- This scheme will give a return of 8.2% for senior citizens. It is a source of stable income for them.
Sukanya Samriddhi Yojana (SSY):- This scheme, which secures the future of daughters, will also give a return of 8.2%. This rate is the same as the rates of April-June 2025 quarter.
3-year Term Deposit:- 7.1% interest will be available on this.
Post Office Savings Deposit Schemes:- 4% interest will be available on this.
Kisan Vikas Patra:- It matures in 115 months (9 years 7 months), and a 7.5% interest rate is applicable on it.
Monthly Income Scheme:- 7.4% interest will be available on this.
All these rates are equal to the rates of the previous quarter, due to which investors will not see any change.
Why did rates not change despite the repo rate cut
Let us tell you that the Reserve Bank of India (RBI) has cut the repo rate by a total of 1% so far this year. This includes a cut of 0.25% in February, 0.25% in April, and 0.50% in June. This has also led to a decline in bond yields. For example, the yield on 10-year government bonds was 6.779% on January 1, 2025, which fell to 6.283% on June 25, 2025. In such a situation, it was said that the government could also cut the interest rates of small savings schemes. However, this did not happen, which shows the government’s commitment to small investors.
How are post office interest rates decided
The government reviews the interest rates of post office schemes every quarter. The recommendations of the Shyamala Gopinath Committee are followed to fix these rates. The committee says that the interest rates of these schemes should be 25 to 100 basis points (0.25% to 1%) higher than the yield of government bonds of the corresponding period. This ensures that these schemes remain attractive to investors.
However, many times the government does not fix the interest rate according to this formula. The reason for this is that the government is not bound to always follow the recommendations of the committee. Many times, keeping in mind the interests of the common people, the government makes decisions at its level. This time too, the government has given relief to small and middle-class investors by keeping the interest rates stable despite the reduction in the repo rate.
