PPF, NSC Interest Rates Unchanged for July–Sept FY26: Govt Keeps Small Savings Schemes Steady

The Indian government has decided that the interest rates on small savings schemes, such as the Public Provident Fund (PPF) and National Savings Certificate (NSC), will remain the same for the next quarter. This announcement applies to the July–September quarter of the financial year 2025–26.

This is the sixth quarter in a row where the rates have not changed. The government wants to make sure these schemes continue to be a safe and attractive option for people looking to grow their savings.

Official Announcement

On Monday, June 30, 2025, the Ministry of Finance released a notification stating, “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.”

The notification was shared with the media by the PTI news agency.

What Are Small Savings Schemes?

Small savings schemes are savings plans offered by the Indian government through post offices and banks. They include schemes like:

• Public Provident Fund (PPF)
• Sukanya Samriddhi Yojana
• Kisan Vikas Patra
• National Savings Certificate (NSC)
• Post Office Savings Deposit
• Term deposits of different tenures
• Monthly Income Scheme

These schemes are popular because they are considered safe, have predictable returns, and often come with tax benefits.

Detailed Interest Rates for July–September FY26

Here are the interest rates that will apply for the upcoming quarter:

1. Public Provident Fund (PPF)

The interest rate on the PPF savings account remains unchanged at 7.1% per annum.
This rate has stayed the same for many quarters now, giving stability to investors.

2. Sukanya Samriddhi Scheme

For this scheme aimed at securing the future of the girl child, the interest rate continues at 8.2% per annum. This is one of the highest interest rates among all small savings schemes.

3. 3-Year Term Deposit Scheme

The 3-year term deposit interest rate is also unchanged at 7.1%, which matches the rate offered in the previous quarter.

4. Post Office Savings Deposit

The basic Post Office Savings Deposit scheme will keep offering 4% interest for the next quarter. This is the most basic savings option among all schemes.

5. Kisan Vikas Patra

The Kisan Vikas Patra will continue to offer 7.5% interest. Investments in this scheme will mature after 115 months, which is roughly 9.7 years.

6. National Savings Certificate (NSC)

The interest rate on the NSC remains 7.7% per annum. This scheme is commonly used by savers who prefer fixed returns and tax benefits.

7. Monthly Income Scheme

The Monthly Income Scheme (MIS), backed by India Post, will pay 7.4% interest to investors during the July–September quarter.

Why Has the Government Not Changed the Rates?

Small savings schemes are reviewed every quarter, and any change in interest rates is typically based on:

• Inflation trends
• Competing returns from bank deposits and bonds
• The need to encourage people to save

However, for over a year, the rates have remained steady.

According to reports, the government believes that keeping rates unchanged helps households rely on steady income from their savings and protects them from the volatility of stock markets.

Read More: EPF Interest for FY 2024–25 Credited at 8.25%: How to Check Your Balance!

When Was the Last Change in Rates?

The government last revised interest rates for some of these schemes during the January–March quarter of FY24. Since then, the rates have been kept the same across all subsequent quarters, including the current announcement.

Why Are These Schemes Important?

These schemes are crucial for many reasons:

• They provide safe and fixed returns, especially important for senior citizens and low-risk investors.
• Some of them offer tax benefits under Section 80C of the Income Tax Act.
• They encourage regular household savings, which help create financial security.

Conclusion

If you are planning to invest in small savings schemes such as PPF, NSC, Sukanya Samriddhi, or Kisan Vikas Patra, you can expect the same interest rates to continue until September 30, 2025.

These schemes remain an ideal choice for anyone who wants to grow their money safely while benefiting from government-backed guarantees and predictable returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.