Small Savings Schemes: The central government is going to review the interest rates of all small savings schemes, including post office schemes, for the fourth quarter of this year, i.e., January to March 2026. The new interest rates are likely to be announced around December 31, 2025. Experts estimate that even though the Reserve Bank of India has cut the repo rate by a total of 1.25 percent this year, the government may keep the rates of small savings schemes unchanged this time as well. Interest rates have remained stable for the past seven quarters.

Read Here: ITR Update – Over 21 Lakh Taxpayers Filed Returns – Paid Rs 2,500 Crore in Taxes

Which schemes are included?

The government runs a total of 12 types of small savings schemes. These include major schemes such as Post Office Savings, Public Provident Fund (PPF), Sukanya Samriddhi Yojana, Senior Citizen Savings Scheme, and National Savings Certificate. The government reviews the interest rates of these schemes every three months to ensure better returns for investors in the long term.

Current Interest Rates

Currently, the interest rates for small savings schemes are as follows: Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana 8.2%, PPF 7.1%, National Savings Certificate 7.7%, Kisan Vikas Patra 7.5%, Post Office Monthly Income Scheme 7.4%, Post Office Fixed Deposit Scheme for 1 to 5 years 6.9% to 7.5%, and 5-year Post Office Recurring Deposit Scheme 6.7%.

Impact of Repo Rate Cut

This year, the RBI cut the repo rate by a total of 1.25 percent. There were cuts of 25 basis points each in February and April, 50 basis points in June, and 25 basis points in December. Following this, several major banks reduced the interest rates on savings accounts and FDs. The repo rate is now stable at 5.25 percent. This step was taken keeping in mind low inflation and strong economic growth.

Read Here: Big Relief for Farmers, Now Get Loans at 6% Interest. Here’s How to Apply

What do experts say?

Experts believe that despite the repo rate cut, a change in the rates of small savings schemes is unlikely. The government may keep these rates stable to attract savers despite falling market rates and to help control the fiscal deficit. The current rates have had a positive impact on investors and have provided satisfactory returns in the long run.