When it comes to saving money safely, many families in India rely on small savings schemes like PPF, NSC, and Sukanya Samriddhi Yojana. These are not just investment tools—they’re lifelines for future security. And now, the Finance Ministry has issued its latest notification for the second quarter of the financial year 2025-26.
What’s the Latest Decision?
The Modi government has decided not to change the interest rates on any small savings schemes for the quarter starting July 1, 2025 and ending September 30, 2025. This means that if you’re already investing or planning to invest, the same interest rates will apply as before.
This is the fifth straight quarter where rates have remained the same, offering a sense of consistency for cautious investors.
Updated Savings Scheme Interest Rates (July–Sept 2025)
Here’s a quick look at what you’ll earn under different schemes this quarter:
| Scheme | Interest Rate | Notes |
|---|---|---|
| Sukanya Samriddhi Yojana | 8.2% | For girl child savings |
| Public Provident Fund (PPF) | 7.1% | Long-term, tax-saving scheme |
| Post Office Savings Account | 4.0% | No change since previous quarter |
| National Savings Certificate (NSC) | 7.7% | 5-year fixed investment |
| Kisan Vikas Patra (KVP) | 7.5% | Matures in 115 months |
| 3-Year Fixed Deposit | 7.1% | Under post office term deposits |
| Monthly Income Scheme (MIS) | 7.4% | For fixed monthly interest |
Note: National Savings Certificate interest rate was incorrectly reported by some outlets as 10%. The correct rate remains at 7.7% as per official data.
Why Is This Important?
For many households—especially retirees, women savers, and middle-income families—small savings schemes offer guaranteed returns with minimal risk. Even if market-linked instruments fluctuate, these fixed-income schemes provide a stable cushion.
Here’s what makes this announcement noteworthy:
- Rates remain steady for the 5th quarter in a row
- Encourages continued trust in traditional saving habits
- Reflects the government’s focus on maintaining economic predictability for the public
Is This the Right Time to Invest?
If you’re holding back on opening a PPF or Sukanya Samriddhi account waiting for a rate hike—this may not be necessary. The current rates are already higher than many bank FDs and offer tax benefits, especially in schemes like PPF and Sukanya Yojana (under Section 80C).
Also, if you’re looking for monthly income, the Post Office MIS still gives a decent 7.4%—a good option for retirees.
Quick Tip: What to Keep in Mind
- These rates are revised every quarter—next change expected on October 1, 2025
- Interest is compounded annually in most schemes, except MIS
- Always apply through official channels—avoid third-party agents charging commissions
FAQs (Updated for July–Sept 2025)
Q: Will the PPF interest rate increase later this year?
It depends on inflation trends and government policy. The next update will be in October 2025.
Q: Can I invest in multiple small savings schemes at once?
Yes, you can hold accounts in PPF, Sukanya, NSC, and others simultaneously.
Q: What’s better—PPF or NSC?
PPF is ideal for long-term, tax-free growth. NSC is fixed for 5 years and suits short-term goals.
Q: Is it safe to invest in these schemes now?
Absolutely. These are backed by the Government of India and offer guaranteed returns.
Q: Where can I find the official circular?
You can visit the Ministry of Finance website: https://dea.gov.in
