Small Savings Scheme Rates 2025

📊 Small Savings Scheme Rates (Q2 FY 2025‑26)

Scheme Interest Rate

Public Provident Fund (PPF) 7.1%

Sukanya Samriddhi Yojana (SSY) 8.2%

Senior Citizens Savings Scheme (SCSS) 8.2%

National Savings Certificate (NSC) 7.7%

Post Office 3‑Year Term Deposit 7.1%

Post Office FD (5‑Year) 7.5%

Post Office Monthly Income Scheme (POMIS) 7.4%

Kisan Vikas Patra (KVP) 7.5% (doubles in ~115 months)

Post Office Savings Account 4.0%

These rates are unchanged from the April–June quarter 

🔍 Context & Insights

As of June 30, 2025, the government decided not to adjust these rates for the July–September quarter, marking the sixth consecutive quarter with no changes 

Although the RBI has cut the benchmark repo rate by 1% this year—and banks have responded with lower deposit rates—the small savings schemes have remained unchanged to preserve stability and confidence for retail savers 

These rates are typically benchmarked to government bond yields plus a small spread, as per the Shyamala Gopinath Committee formula 

. Despite recent bond yield declines, the government has kept the added spread intact.

✅ What This Means for You

Guaranteed returns: With most schemes offering between 7–8.2%, these options remain safer compared to many bank FDs, which are trending lower

Tax benefits: PPF, SSY, NSC, and SCSS offer deductions under Section 80C. PPF and SSY also provide tax-free interest and maturity.

Ideal for risk-averse investors: Especially senior citizens and par

ents (via SSY), these schemes offer solid yields with minimal risk.

✅ What to Do Next

Compare against bank FDs – currently at ~6–7%, small savings may offer better net returns.

Opt for tax-efficient schemes – PPF and SSY yield tax-free benefits.

Lock in rates now – with rates stable, funds parked now earn assured returns regardless of future cuts.

Monitor quarterly reviews – next update will be on September 30, 2025.

✅ Bottom Line

Small savings schemes remain a trusted choice for middle-class and conservative investors—offering strong, government-backed returns (7–8.2%) and periodic tax savings. They're especially appealing when compared to fluctuating bank deposit rates amid RBI rate cuts.

Would you like a breakdown of which scheme is best suited for your goals (like retirement, children’s education, or senior citizen income), or a side-by-side comparison with current FD rates and taxes? Just let me know!