Small savings schemes: Govt announces interest rates for PPF, NSC for July-September quarter of FY26; check details

Small savings schemes: The Ministry of Finance on Monday, 30 June 2025, kept the interest rates for multiple small savings schemes, including PPF and NSC, unchanged for the sixth consecutive quarter starting 1 July 2025, reported the news agency PTI. 

“The rates of interest on various Small Savings Schemes for the second quarter of FY 2025-26 starting from 1st July, 2025 and ending on 30th September, 2025 shall remain unchanged from those notified for the first quarter (April to June) of FY 2025-26,” said the Finance Ministry in the notification, cited in the agency report.

What are the interest rates?

As the official government notification, the centre has kept the interest rates unchanged for the upcoming second quarter of the financial year 2025-26. Here are the interest rates at a glance for your reference — 

1. Public Provident Fund (PPF): The interest rate on a PPF savings account is kept unchanged at 7.1 per cent.

2. Sukanya Samriddhi scheme: The Sukanya Samriddhi scheme will attract an interest rate of 8.2 per cent.

3. Three-year term deposit scheme: The interest rate of the three-year term deposit is also kept unchanged at 7.1 per cent, the same as the current quarter.

3. Post Office Savings Deposit scheme: The interest rates for the Post Office Savings Deposit scheme were kept unchanged at 4 per cent for the upcoming second quarter of the 2025-26 fiscal year.

4. Kisan Vikas Patra: The small savings scheme of Kisan Vikas Patra will have an interest rate of 7.5 per cent, as the investments will mature after a period of 115 months or 9.7 years. 

5. National Savings Certificate (NSC): The interest rate on the National Savings Certificate scheme will also remain at 7.7 per cent for the July to September quarter of the 2025-26 fiscal year.

6. Monthly Income Scheme: The India Post Office-backed monthly income scheme (MIS) will receive an interest rate of 7.4 per cent for the investors in the second quarter.

Small savings schemes are mainly operated by post offices and banks. The Indian government last made changes in the interest rate of some schemes in the fourth quarter (January to March) of the financial year 2023-24.

This data on the interest rate of Small Savings Schemes is released every quarter. According to a report from the news portal The Hindu Business Line, the government aims to encourage household savings by maintaining the schemes’ attractiveness over alternative investments such as stock market investments.