The Finance Ministry announced on June 30, 2025 that there will be no change in the interest rates of various small savings schemes such as Public Provident Fund (PPF), National Savings Certificate (NSC) for the second quarter (July to September) of FY 2025–26. This is the sixth consecutive quarter when the interest rates of these schemes have been kept unchanged. The government’s decision aims to provide stable and predictable returns to small investors, allowing them to stay safe from market volatility and make long-term financial plans.
Why is it in discussion?
On June 30, 2025, the Finance Ministry of the Government of India announced that the interest rates on small savings schemes will remain unchanged for the second quarter (July-September) of the financial year 2025–26 . This is the sixth consecutive quarter when there has been no change in interest rates.
This decision reflects the Government’s efforts towards ensuring stable and safe returns for middle and lower income group investors , especially when inflation is declining and current rates are already competitive.
Key Interest Rates (July-September 2025)
| Plan | Interest Rate (%) |
|---|---|
| Public Provident Fund (PPF) | 7.1 |
| Sukanya Samriddhi Yojana (SSY) | 8.2 |
| National Savings Certificate (NSC) | 7.7 |
| Monthly Income Scheme (MIS) | 7.4 |
| Kisan Vikas Patra (KVP) | 7.5 (Maturity: 115 months) |
| 3-Year Fixed Deposit | 7.1 |
| Post Office Savings Account | 4.0 |
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Long term investment, suitable for retirement.
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Government backed, full tax exemption(EEE).
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Interest rate: 7.1% , unchanged.
Sukanya Samriddhi Yojana (SSY)
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Targeted scheme for girl child.
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Highest interest rate: 8.2%
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Promotion of education and future security of daughters.
National Savings Certificate (NSC)
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Medium Term Guaranteed Investment Plan.
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Interest: 7.7% , compounded annually (paid on maturity).
Kisan Vikas Patra (KVP)
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Investment amount doubles in 115 months.
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Interest Rate: 7.5% , safe and predictable.
Monthly Income Scheme (MIS)
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A scheme providing regular monthly income , especially for retired people.
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Interest rate: 7.4% , with monthly payments.
Significance and impact
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Stability and Transparency: Keeping rates unchanged helps maintain investor confidence.
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Benefits low-risk investors: for whom capital protection is a priority.
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Support to government borrowing: Savings raised from these schemes support public spending.
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Safe option in times of economic uncertainty: Drives domestic investment amid global instability.
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