Govt Retains Small Savings Scheme Interest Rates for July-September FY26: Full List of Rates
Govt Retains Small Savings Scheme Interest Rates for July-September FY26: Full List of Rates
In a move aimed at maintaining consistency and stability for small investors, the Indian government has decided to keep interest rates unchanged across all small savings schemes for the July-September quarter of the financial year 2025-26. This marks the sixth consecutive quarter that the rates have remained the same, signaling the Centre’s intention to support household savings amid broader economic considerations.
According to a notification issued by the Ministry of Finance on June 30, 2025, the interest rates that were applicable during the April-June 2025 quarter will continue to apply for the next three months, beginning July 1 and ending September 30. The rates apply to various small savings instruments primarily operated through post offices and public sector banks across the country.
Among the key schemes, the Public Provident Fund (PPF) continues to offer an annual return of 7.1%, a popular long-term saving tool with tax benefits under Section 80C. Similarly, the National Savings Certificate (NSC) also retains its current interest rate at 7.7%, offering a secure fixed return for investors over a five-year maturity period.
The Sukanya Samriddhi Yojana, a targeted scheme for the girl child, continues to be the most attractive among all small savings plans with an interest rate of 8.2%. This remains unchanged and reflects the government’s push to incentivize long-term investments in the education and welfare of girls.
For those looking at medium-term savings, the three-year term deposit remains steady with a 7.1% interest rate. Meanwhile, the Post Office Savings Account, which serves as a basic and highly liquid savings tool, holds its interest rate at 4%.
The Kisan Vikas Patra (KVP), another popular choice among rural investors due to its guaranteed returns and simplicity, will continue to offer a 7.5% interest rate, with the investment maturing after 115 months (approximately 9 years and 7 months).
Investors relying on steady monthly payouts will continue to benefit from the Monthly Income Scheme (MIS), which provides an interest rate of 7.4%. This scheme remains a preferred option for senior citizens and conservative investors looking for regular income without the volatility of market-linked returns.
It’s worth noting that this is the fifth quarter in a row where no changes have been made to the interest rates, following the last revision that occurred during the January-March quarter of FY 2023-24. The government assesses and notifies these rates every quarter, based on recommendations from the Shyamala Gopinath Committee, which links small savings interest rates to prevailing yields on government securities.
By maintaining these rates, the government continues to strike a careful balance—keeping the schemes appealing for risk-averse savers while avoiding any excessive outflows that could arise from offering overly generous returns in a rising interest rate environment. This steady stance offers both reassurance and predictability to millions of Indian households who rely on these instruments for their financial planning and long-term goals.
In a landscape increasingly dominated by volatile market-linked investments, small savings schemes remain a cornerstone of secure and reliable savings, particularly for middle-income families, senior citizens, and rural investors.
