Small Savings Schemes Interest Rates

Here are the small savings scheme interest rates in India for the July–September 2025 quarter (effective July 1 – September 30, 2025). The government has kept the rates unchanged for the sixth straight quarter

nterest Rates Overview

Public Provident Fund (PPF): 7.1 % p.a. (compounded annually)

Sukanya Samriddhi Yojana (SSY): 8.2 % p.a.

National Savings Certificate (NSC): 7.7 % p.a. (5-year maturity)

Senior Citizens Savings Scheme (SCSS): 8.2 % p.a., payable quarterly

Kisan Vikas Patra (KVP): 7.5 % p.a., maturity ~115 months

Monthly Income Scheme (MIS): 7.4 % p.a. with monthly payouts 

Post Office Time Deposit (TD):

1‑year: 6.9 %

2‑year: 7.0 %

3‑year: 7.1 %

5‑year: 7.5 %

5-year Recurring Deposit (RD): 6.7 % 

Post Office Savings Account (Saving Deposit): 4.0 %

Why the Stability?

The Reserve Bank of India slashed the repo rate by 100 bps earlier in 2025, leading many banks to reduce fixed deposit rates

 Nevertheless, the government chose not to change small savings rates to protect household savers’ returns and maintain stability

🧭 Comparing with Bank FDs & Bonds

Instrument Interest Rate

SCSS 8.2 % (highest govt-backed)

Leading Small Finance Bank FDs Up to ~9.1 % (e.g., Suryoday)

RBI Floating Rate Savings Bonds 8.05 % (semi‑annual payout, linked to NSC)

Bank FDs may offer higher short-term returns, but small savings schemes are fully backed by the government and often carry tax benefits under Section 80C.

RBI bonds provide variable returns indexed to NSC, combining stability with periodic payouts.

Planning Tips

Long-term & tax‑free: PPF (7.1%) is ideal with 15-year maturity.

Education/marriage for girl child: SSY (8.2%) is top-tier.

Retired individuals: SCSS (8.2%) offers high returns with regular payouts.

Monthly income: MIS (7.4%) is a reliable option.

Shorter horizons: Choose TDs/RDs (6.9–7.5%) accordingly.

🔚 Bottom Line

Interest rates for all major small savings schemes remain unchanged from April–June, providing predictable, government-guaranteed returns. These are ideal for risk-averse investors seeking stability, tax benefits, and regular income.

Let me know if you’d like guidance on choosing between these schemes, tax implications, or comparing with bank FDs or mutual funds!