Small Savings Schemes Interest Rates Unchanged: Investors to Benefit Until December 2025

The Central Government has given a big relief to small investors and senior citizens by announcing that the interest rates on small savings schemes will remain unchanged until December 2025. Despite the Reserve Bank of India’s decision to cut the repo rate in the previous quarter, the Ministry of Finance has chosen to retain the current rates for the October–December quarter.

This means that popular schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS), Kisan Vikas Patra (KVP) and other post office deposit options will continue to offer the same attractive returns they have been providing in recent months.

Current Interest Rates on Key Schemes

According to the Finance Ministry’s notification, the following annual interest rates will remain in effect for the October–December 2025 quarter:

• Public Provident Fund (PPF): 7.1% (15-year lock-in period)

• Sukanya Samriddhi Yojana (SSY): 8.2% (investment in the name of a girl child, maturity after 21 years)

• Senior Citizens Savings Scheme (SCSS): 8.2% (5-year tenure, specifically for senior citizens)

• National Savings Certificate (NSC): 7.7% (5-year lock-in)

• Kisan Vikas Patra (KVP): 7.5% (doubles investment in 115 months)

• Post Office Time Deposit (5 years): 7.5% (eligible for tax deduction under Section 80C)

For comparison, bank fixed deposits (FDs) currently offer:

• Regular customers: 6.5% – 7.5% (depending on bank and tenure)

• Senior citizens: 7.0% – 8.0% (with an additional 0.5% interest benefit)

Clearly, many small savings schemes continue to provide higher or comparable returns than fixed deposits, making them attractive for risk-averse investors.

Quarterly Review by Finance Ministry

The Department of Economic Affairs (DEA) under the Ministry of Finance reviews interest rates on small savings schemes every quarter. These rates are generally linked to government bond yields.

In the July–September 2025 quarter, no changes were made to the rates, and the same decision has now been repeated for the October–December quarter. This marks the second consecutive quarter where rates have remained steady, which brings relief to millions of investors who rely on these schemes for secure and predictable returns.

Why This is Good News for Investors

For senior citizens, middle-class households, and small investors, this announcement ensures a stable source of income during uncertain economic times. Many families depend on small savings schemes to meet their financial goals such as children’s education, marriage, and retirement security.

With bank FD rates ranging between 6.5% and 7.5%, small savings schemes like SCSS, SSY, and PPF remain more attractive and dependable investment choices. The government’s decision provides assurance that the returns will remain fixed at least until December 2025.

What Happens After December?

While investors can enjoy the current interest rates until December, the next review will take place for the January–March 2026 quarter. Depending on domestic and global bond yields, as well as inflation and monetary policy, the government may revise the rates upward or downward at that time.

For now, investors have a three-month window to make new investments or renew their deposits at the prevailing higher rates.

Key Takeaway

The government’s decision to retain interest rates on small savings schemes until December 2025 is a welcome move for millions of Indians, especially senior citizens and small investors. With attractive rates such as 8.2% on Sukanya Samriddhi Yojana and SCSS, and 7.1% on PPF, these schemes remain among the best low-risk investment avenues in comparison to bank fixed deposits.

For those seeking safe, government-backed returns, the next three months present an opportunity to secure steady income and long-term growth.