There are many investment schemes available for people in the country, through which people invest a part of their earnings to achieve their financial goals. Schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana, and Kisan Vikas Patra are popular among the middle class and pensioners. However, for years, the government has not increased the interest rate in these schemes. What is the reason that the government has kept the earlier interest rate?

People find it better to invest money in government schemes instead of other schemes. This includes small budget schemes of the post office. However, even after many years, the government has not increased the interest rate in these schemes. This could be the reason for this.

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This is the reason why interest rates did not increase

Let us remind you that when the lockdown was imposed in March 2020, the RBI had cut the repo rate by 75 basis points to reduce the financial burden on the people. When the repo rate was at 4.40%, after this occasion, banks also reduced the interest rates on FD and savings.

However, the government did not reduce the interest rate on small savings schemes. So that investors can keep earning, although now the RBI has again increased the repo rate and banks are also giving more interest, even then, the interest rates given by the government on small savings schemes are the same as before.

Finance experts believe that the government is keeping its interest expenses under control. If the government also increases the interest rates of small savings schemes, then the government treasury will be affected by more interest income. In such a situation, the government is trying to maintain balance by not increasing the rates. When banks were giving less interest on FD, then more was being given on small savings schemes. Now that the bank rates have increased, the rates in these schemes are the same as before.

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Interest rates on small savings schemes

Although the interest rates in these schemes may be somewhat low, for the people investing, there is a guarantee and a stable return in the government scheme. Due to which this scheme is preferred for investment by people with low income and, middle class.

The government had kept the interest rates the same for the quarter of July-September 2025. Currently, the interest rates on small savings schemes are as follows. If someone invests, then this is how the earnings will be.

  • Sukanya Samriddhi Yojana – 7.6%
  • Public Provident Fund (PPF) – 7.1%
  • National Savings Certificate (NSC) – 6.8%
  • Senior Citizen Savings Scheme (5 years) – 7.4%
  • Post Office Monthly Income Scheme – 6.6%
  • Kisan Vikas Patra – 6.9%