The new interest rates for the third quarter of this financial year, October-December 2025, will be announced on September 30. These new rates will be effective from October 1. Previously, the interest rates for the second quarter were reviewed in June 2025, but no changes were made to the interest rates.

This time, the most discussed interest rate is on the Public Provident Fund (PPF). Currently, PPF offers 7.1 percent interest, but there are indications that it may be reduced. If this happens, the PPF interest rate will reach its lowest level in the last 50 years. However, no official information has been revealed in this regard yet.

Interest rates have remained unchanged for the past six quarters.

This marks the sixth consecutive quarter in which the rates for these schemes have remained unchanged. This means that investors are currently receiving the same returns as those promised in the April-June quarter. The question now is whether any changes will be seen in the October-December quarter.

The schemes for which interest rates are to be decided include the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Senior Citizens Savings Scheme (SCSS), and others. A reduction in interest rates this time could be a major setback for investors. However, an increase in interest rates would be good news for investors.

Learn how post office interest rates are determined.

The government reviews the interest rates of post office schemes every quarter. These rates are determined based on the recommendations of the Shyamala Gopinath Committee. The committee recommends that the interest rates of these schemes should be 25 to 100 basis points higher than the yield on government bonds for the corresponding period. This ensures that these schemes remain attractive to investors.

However, sometimes the government doesn’t set interest rates based on this formula. This is because the government is not obligated to always follow the committee’s recommendations. Sometimes, the government makes its own decisions based on the public interest.

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The post Small Saving Schemes Update! New rates on PPF, SSY, NSC, KVP to be decided on September 30 first appeared on Rightsofemployees.com.

Small Saving Schemes: The government has given relief to small investors by changing the rules of small saving schemes. For some time now, it has been continuously seen that people are investing a lot of money in Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS) and Time Deposit Scheme.

Therefore, the government has relaxed some rules by issuing a gazette notification. At present the government runs 9 types of small savings schemes. The management of these small savings schemes is done by the Department of Economic Affairs of the Finance Ministry.

New rules of PPF
The rules regarding premature closure of PPF accounts have been changed. According to the notification, this scheme has been called Public Provident Fund (Amendment) Scheme, 2023.

SCSS account can be opened for 3 months
Under the new rules, you will get 3 months time to open an account under Senior Citizens Savings Scheme (SCSS). At present this period is only for one month. According to the notification, a person can open a SCSS account within three months from the date of retirement. This gazette notification was issued on 9 November. According to this, interest will be given at the fixed rate for the scheme on the date of maturity or extended maturity.

National Savings Time Deposit Scheme also changed
According to the notification, the rules for premature withdrawal under the National Savings Time Deposit Scheme (NSTDS) have been changed. If the amount deposited in an account with a tenure of 5 years is prematurely withdrawn after 4 years from the date of account opening, interest will be payable at the rate applicable to Post Office Saving Scheme. According to the current rules, in the above situation, interest is given at fixed rate for 3 years savings account.

Tax saving on small savings scheme
On many of these schemes, you can get exemption of up to Rs 1.5 lakh under Section 80C of Income Tax. People are investing heavily in small savings schemes like Senior Citizen Savings Scheme and Mahila Samman Savings Certificate..

Investment in these schemes has reached record levels. Investment in these schemes increased 2.6 times compared to last year to Rs 74,675 crore. The government had increased the annual investment limit in these schemes to Rs 30 lakh.

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