Small Savings Schemes: Good News! Interest Rates for Small Savings Schemes Published for July-September Quarter

Small Savings Schemes: The Central Government has announced its decision to keep the interest rates for small savings schemes unchanged for the second quarter of the financial year 2025-26. This period will run from July 1, 2025, to September 30, 2025. This announcement has assured millions of investors, especially from the middle class and senior citizens, of steady returns on their savings.

Interest Rates on Various Schemes

According to the announcement from the Ministry of Finance, the interest rates on various popular small savings schemes remain the same as before. Let’s take a look at the interest rates for each scheme:

• Post Office Savings Account: 4%
• Time Deposits:
  • 1-Year: 6.9%
  • 2-Year: 7%
  • 3-Year: 7.1%
  • 5-Year: 7.5%
• 5-Year Recurring Deposit: 6.7%
• Senior Citizen Savings Scheme: 8.2%
• Monthly Income Account Scheme: 7.4%
• National Savings Certificate (NSC): 7.7%
• Public Provident Fund (PPF): 7.1% (This rate has been stable for 66 months)
• Kisan Vikas Patra: 7.5% (At this interest rate, your investment will double in 115 months)
• Sukanya Samriddhi Yojana: 8.2%

What Does This Mean for Investors?

This decision to keep interest rates unchanged carries a mixed message for investors. On one hand, those who have already invested in these schemes or are planning to invest anew are assured of a fixed and secure income. This is particularly relieving for senior citizens and those saving for a girl child’s future, as schemes like the Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana offer high interest rates of up to 8.2%.

On the other hand, some investors might be disappointed that the interest rates were not increased, especially those who were hoping for a hike to keep pace with inflation. However, in the current economic scenario, where there is a tendency to lower interest rates in many areas, keeping these rates unchanged is seen as a positive step.

Future Planning

If you are a small saver, this stability in interest rates will bring stability to your financial planning. Depending on your financial goals and risk appetite, you can choose one or more of these schemes. For instance, PPF can be a good option for long-term goals, while Post Office Time Deposits can be suitable for short-term needs.

These new rates will be applicable for the next three months, so consider all aspects carefully before making your investment decisions.