The central government has announced interest rates on all small savings schemes for the October-December 2025 quarter. These schemes, commonly known as Post Office Savings Schemes, include popular schemes such as the Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), National Savings Certificates (NSC), Kisan Vikas Patra (KVP), and Sukanya Samriddhi Yojana (SSY). These schemes are primarily operated through post offices and banks.
The government has not made any changes to the interest rates on these schemes for the October-December 2025 quarter. This means that investors will continue to receive the same interest rates as the previous quarter. Interest rates on these schemes have remained unchanged for several quarters, with some last revised in the fourth quarter of the financial year 2023-24. The government announces interest rates on small savings schemes every three months.
Which schemes will offer excellent returns
The government has kept interest rates unchanged on major savings schemes, ensuring stable returns for investors.
The Public Provident Fund (PPF) will continue to offer an attractive interest rate of 7.1%.
National Savings Certificates (NSC) offer a return of 7.7%.
The Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) both retain their highest interest rates of 8.2%.
The previous rates on Kisan Vikas Patra (KVP) will also continue.
These small savings schemes are commonly known as post office schemes and are the most reliable option for those looking for safe investments.
How are interest rates determined
Interest rates on post office savings schemes are determined as per the guidelines of the Shyamala Gopinath Committee. According to these guidelines, returns on small savings schemes should be equal to the secondary market yields of Central Government Securities (G-secs), plus a margin of 25 basis points.
For example, interest rates on 5-year time deposits are determined based on the secondary market performance of 5-year G-secs, plus a margin of 25 basis points. However, established practice dictates that when the repo rate and bond yields fall, small savings rates should also fall proportionately to align with the market. However, final government decisions can sometimes deviate from these precise calculations.