Relief for Investors: Small Savings Schemes Including PPF, Sukanya Samriddhi, NSC and SCSS to Maintain Current Interest Rates Despite Repo Rate Cuts
Relief for Investors: Small Savings Schemes Including PPF, Sukanya Samriddhi, NSC and SCSS to Maintain Current Interest Rates Despite Repo Rate Cuts
SPPF, Sukanya Samriddhi, NSC, SCSS and other schemes to continue with existing rates despite repo rate cuts.
The Finance Ministry has kept interest rates on popular small savings schemes unchanged for the October–December quarter of FY2025-26. According to an official notification by the Department of Economic Affairs, the rates will remain the same as those for July–September 2025.
This means deposits under the Sukanya Samriddhi Yojana (SSA) will continue to earn 8.2%, while Public Provident Fund (PPF) remains steady at 7.1%. Similarly, the National Savings Certificate (NSC) will offer 7.7%, and the Kisan Vikas Patra (KVP) will fetch 7.5% with a maturity of 115 months.
Despite three repo rate cuts by the RBI in 2025 and a decline in government bond (G-Sec) yields, the government has decided to maintain these returns. The repo rate has been reduced by a total of 1% this year, bringing it down from 6.5% to 5.5%.
According to the Shyamala Gopinath Committee formula, small savings rates are typically linked to G-Sec yields with a spread. For example, PPF is benchmarked at 25 basis points above the 10-year G-Sec yield, which averaged 6.66% in the last quarter. Still, the government retained the PPF rate at 7.1% higher than the benchmark, to protect small savers.
Key Interest Rates for Oct–Dec 2025
- Sukanya Samriddhi Yojana (SSA):Â 8.2%
- Public Provident Fund (PPF):Â 7.1%
- Three-Year Post Office Deposit:Â 7.1%
- National Savings Certificate (NSC):Â 7.7%
- Kisan Vikas Patra (KVP):Â 7.5% (matures in 115 months)
- Monthly Income Scheme:Â 7.4%
- Post Office Savings Deposit:Â 4%
The last revision in these schemes was in Jan–Mar 2024, when the Sukanya Samriddhi rate was raised from 8% to 8.2%, and the three-year deposit rate was increased from 7% to 7.1%.
Small savings schemes, such as PPF, NSC, and Sukanya Samriddhi, remain crucial for millions of Indian households, particularly middle-class families, pensioners, and senior citizens who depend on them for stable income and secure savings.
