Small Savings Schemes Interest Rates Announcement for July–September Quarter FY26

On June 30, 2025, the Ministry of Finance announced that the interest rates for various small savings schemes—including Public Provident Fund (PPF), National Savings Certificate (NSC), and others—will remain unchanged for the second quarter (July–September) of FY2025–26. This marks the sixth consecutive quarter that the interest rates have been maintained at the same levels, signaling a continued effort to provide stable and predictable returns to small savers.

Why in News?

The announcement by the Ministry of Finance is significant as it impacts the investment decisions of millions of small and middle-income households across India. With inflationary pressures easing and interest rates already competitive, the government opted to keep rates steady to strike a balance between market stability and incentivizing savings.

Key Interest Rates for July–September FY26

Scheme/Interest Rate (%)

• Public Provident Fund (PPF)/7.1
• Sukanya Samriddhi Yojana/8.2
• National Savings Certificate/7.7
• Monthly Income Scheme (MIS)/7.4
• Kisan Vikas Patra (KVP)/7.5 (Maturity in 115 months)
• 3-Year Term Deposit/7.1
• Post Office Savings Deposit/4.0

Scheme Objectives and Static Facts

Public Provident Fund (PPF)

• Long-term retirement-oriented investment.
• Backed by the government, with EEE tax status (Exempt-Exempt-Exempt).
• Interest: 7.1%, unchanged.

Sukanya Samriddhi Yojana (SSY)

• Targeted at the girl child.
• High interest rate of 8.2%, government-backed.
• Promotes gender equality and future security for girls.

National Savings Certificate (NSC)

• Medium-term investment with guaranteed returns.
• Interest at 7.7%, compounded annually but payable at maturity.

Kisan Vikas Patra (KVP)

• Ensures doubling of the investment in 115 months.
• Interest rate: 7.5%, secure and predictable.

Monthly Income Scheme (MIS)

• Regular income-generating scheme ideal for retirees.
• Fixed monthly payouts; interest: 7.4%.

Overall Significance

• The decision ensures financial stability and appeals to risk-averse investors.
• Helps mobilize household savings towards government borrowing.
• Crucial for small investors who prefer assured returns over market-linked volatility.
• Enhances investor confidence amid global economic uncertainties.