Govt Keeps PPF, NSC, Sukanya Samriddhi, KVP Rates Unchanged for Oct-Dec FY26

The Ministry of Finance announced on September 30, 2025, that the interest rates for several small savings schemes will remain the same for the October–December quarter of FY 2025-26. This means the rates notified in the previous quarter (July–September 2025) will continue unchanged.

In its notification, the Department of Economic Affairs stated, “The rates of interest on various Small Savings Schemes for the third quarter of FY 2025-26 starting from 1st October, 2025, and ending on 31st December, 2025, shall remain unchanged from those notified for the second quarter (1st July, 2025 to 30th September, 2025).”

Current Interest Rates for Small Savings Schemes

1. Public Provident Fund (PPF): The PPF will continue to offer 7.1% interest.
2. Sukanya Samriddhi Yojana: The scheme remains attractive with an 8.2% interest rate.
3. Three-Year Term Deposit: This deposit option carries an interest rate of 7.1%.
4. Post Office Savings Deposit Scheme: The savings deposit interest rate stays at 4%.
5. Kisan Vikas Patra (KVP): The scheme will continue with a 7.5% rate, and the investment matures in 115 months (about 9.7 years).
6. National Savings Certificate (NSC): The NSC will offer 7.7% interest for the quarter.
7. Monthly Income Scheme (MIS): The Post Office-backed MIS will provide an interest rate of 7.4% until December 31, 2025.

Context and Importance

The government reviews and announces interest rates for small savings schemes every quarter. These schemes are largely operated through post offices and banks and are considered a safe investment option for small and middle-class savers.

The last time the government revised rates was in the January–March quarter of FY24. Since then, most schemes have maintained stable rates, providing investors with steady returns even as bank fixed deposit (FD) rates have shown a downward trend.

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Conclusion

For the October–December quarter of FY26, investors will continue to receive the same interest rates on small savings schemes as in the previous quarter. This decision ensures stability and predictability for those relying on government-backed savings products such as PPF, NSC, Sukanya Samriddhi, and Kisan Vikas Patra. 

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