In a move that will bring relief to millions of small investors, the Ministry of Finance has decided to keep interest rates on all post office small savings schemes unchanged for the October–December 2025 quarter. Despite three repo rate cuts by the Reserve Bank of India (RBI) earlier this year, schemes such as the Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSA), and Senior Citizens Savings Scheme (SCSS) will continue to offer the same returns as before.

No Change Despite Repo Rate Cuts

The decision is significant because many market observers had anticipated a reduction in rates following three consecutive repo rate cuts in 2025. The repo rate—the rate at which the RBI lends to commercial banks—has been reduced by 1% overall this year. It stood at 6.5% at the beginning of 2025 and was brought down to 5.5% after cuts in February, April, and June.

Falling government bond (G-Sec) yields also added to expectations of a reduction in small savings rates. The 10-year G-Sec yield slipped from 6.78% on January 1, 2025, to 6.45% by September 24, 2025. As per the Shyamala Gopinath Committee’s formula, the PPF interest rate should ideally track the 10-year G-Sec yield with an additional 25 basis points. Based on recent averages, this works out to about 6.66%. However, the government continues to offer 7.1% on PPF, ensuring better-than-formula returns for investors.

Interest Rates for Small Savings Schemes (Oct–Dec 2025)

Here are the interest rates that remain unchanged for the upcoming quarter:

• Savings Deposit: 4%

• 1-Year Time Deposit: 6.90%

• 2-Year Time Deposit: 7.00%

• 3-Year Time Deposit: 7.10%

• 5-Year Time Deposit: 7.50%

• 5-Year Recurring Deposit: 6.70%

• Senior Citizens Savings Scheme (SCSS): 8.20%

• Monthly Income Scheme (MIS): 7.40%

• National Savings Certificate (NSC): 7.70%

• Public Provident Fund (PPF): 7.10%

• Kisan Vikas Patra (KVP): 7.5% (matures in 115 months)

• Sukanya Samriddhi Account (SSA): 8.20%

Last Revision Took Place in Early 2024

The last time small savings interest rates were revised was for the January–March 2024 quarter. At that time, the government raised the 3-year time deposit rate from 7% to 7.1% and increased the Sukanya Samriddhi Yojana rate from 8% to 8.2%. Since then, the rates have remained stable despite significant changes in the monetary policy environment.

What It Means for Investors

The decision is particularly important for senior citizens, pensioners, and middle-class households who rely heavily on small savings schemes for steady income and secure returns. A cut in rates would have reduced their earnings, especially in a year when inflation continues to be a concern.

By keeping the rates unchanged, the government has signaled that investor protection and income stability remain a priority, even if the formula-based calculation suggested lower returns. This balance between market-linked benchmarks and social considerations ensures that small savings schemes continue to serve as a safe and attractive investment option.

Key Takeaways

• Interest rates for all small savings schemes remain unchanged for October–December 2025.

• PPF stays at 7.1%, NSC at 7.7%, and SSA at 8.2%.

• Despite a 1% repo rate cut this year and falling G-Sec yields, the government did not lower returns.

• Millions of small investors, especially retirees and salaried households, will benefit from continued stability.

• The government is prioritizing financial security for savers over strict adherence to market-linked formulas.

For crores of Indian households, this decision provides reassurance that their savings will continue to generate reliable income through the year’s final quarter.