The interest rates on different Small Savings Plans for the second quarter of FY 2025-26, which begins on 1 July 2025 and ends on 30 September 2025, will not change from those announced for the first quarter of FY 2025-26, which runs from 1 April 2025 to 30 June 2025 a notification from the finance ministry stated. The announcement states that the interest rate on deposits made under the Sukanya Samriddhi scheme would be 8.2%, while the rate on three-year term deposits is still 7.1% as of this quarter.
Additionally, the interest rates for the well known Public Provident Fund (PPF) and post office savings deposit plans have been kept at 7.1% and 4%, respectively. The investments would mature in 115 months at an interest rate of 7.5% on the Kisan Vikas Patra. For the April-June 2025 period, the National Savings Certificate (NSC) interest rate will stay at 7.7%. Similar to the current quarter, investors will get 7.4% from the Monthly Income Scheme. As a result, for the fifth consecutive quarter, interest rates on small savings plans which are mostly run by banks and post offices have remained constant.
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Latest Post Office Savings Scheme Interest Rates: July-September 2025
| Instrument | Rate of interest from July to September 2025 (%) |
| Post Office Savings Deposit | 4 |
| 1-Year Time Deposit | 6.9 |
| 2-Year Time Deposit | 7 |
| 3-Year Time Deposit | 7.2 |
| 5-Year Time Deposit | 7.5 |
| 5-Year Recurring Deposit | 6.7 |
| Senior Citizen Savings Scheme | 8.2 |
| Monthly Income Account Scheme | 7.4 |
| National Savings Certificate | 7.7 |
| Public Provident Fund Scheme | 7.1 |
| Kisan Vikas Patra | 7.5 (Will mature in 115 months) |
| Sukanya Samriddhi Account | 8.2 |
Both the National Savings Certificate and the Public Provident Fund (PPF) maintain their 7.1% interest rates. Sukanya Samriddhi Yojana (SSY) and the Senior Citizen Savings Scheme (SCSS) both still offer 8.2%.
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What makes bond yields important in determining the rate of small savings schemes?
Bond yields have decreased as a result of the 1% repo rate cut. The policy rates of the RBI are directly correlated. Bond yields usually go lower in tandem with market expectations that the RBI may cut the repo rate. The Shyamala Gopinath Committee’s criteria are followed while determining the interest rates for the Post Office Savings Scheme. Interest rates on small savings instruments should be correlated with secondary market yields on Central Government Securities with comparable maturities, plus an extra 25 basis points, according to the suggestions.
The interest rate calculation for a 5-year time deposit should take into account the 25 basis point margin in addition to the secondary market yield on 5 year G-secs. The government’s practical actions do not always exactly follow these mathematical calculations, even though the stated approach indicates that falling bond yields and repo rates should cause comparable decreases in small savings program rates to reflect market circumstances.
The interest rate on the SSY account remains at 8.2%:
The SSY account now offers 8.2% annual interest, which is calculated and compounded annually and as of tomorrow, 1 July 2025 it will still provide the same interest rate for the second quarter of FY 2025-36.
Interest rates for account holders small savings have not changed:
People with little savings accounts will be quite relieved. Interest rates on a number of minor savings schemes have been left constant by the Finance Ministry for the second quarter of FY 2025-2026.
The interest rate for Post Office Savings Accounts has not changed since 2011:
The interest rate on Post Office Savings Accounts (POSAs) has been at 4% for 14 years, starting on 1 December 2011. It is probably going to stay that way for the next few quarters. In particular, because the most vulnerable groups such as elderly people and people living in rural areas use POSA.
Interest rates for small savings plans are maintained by the government for Q2
On Monday the government maintained the same interest rates for the sixth consecutive quarter starting 1 July 2025 for a number of minor savings plans, such as PPF and NSC. According to a notification from the finance ministry, the interest rates on different Small Savings Plans for the second quarter of FY 2025-26, which begins on 1 July 2025 and ends on 30 September 2025, will not change from those announced for the first quarter, which runs from 1 April 2025 to 30 June 2025.
The announcement states that the interest rate on deposits made under the Sukanya Samriddhi program would be 8.2%, while the rate on three year term deposits is still 7.1% as of this quarter.
Monthly Income Plan for the Post Office: Interest rate stays the same:
POMIS is a unique monthly income scheme that the Post Office alone offers. Account holders now get a 7.4% annual interest rate from the plan, which is paid out on a monthly basis and in the next quarter of FY26, it will still provide the same interest rate.
Interest rates for Kisan Vikas Patra have not changed since 2023:
Since 1 April 2023, the interest rate for Kisan Vikas Patra has stayed at 7.5%. The Finance Ministry did not alter the rate on Monday, June 30. Earlier today (June 30), it was expected that the Kisan Vikas Patra interest rate and other small savings plans will be lowered. This resulted from Central Government securities (G-sec’s) decreasing secondary market yield from January 2025.
Interest rates for July through September Post Office Time Deposits have been released:
Post Office Time Deposit (TD) or Fixed Deposit (FD) interest rates for the July-September quarter of FY 2025-26 were released by the Ministry of Finance today (30 June 2025). It has made the decision to leave interest rates unchanged. The Post Office offers fixed deposits with a maximum interest rate of 7.5% across four different tenures.
What is the interest rate on a National Savings Certificate (NSC) for July through September of 2025:
The NSC interest rate for the July-September quarter of FY 202-2026 has been maintained at 7.7% by the Finance Ministry. Earlier, a revision had been expected.
PPF account interest rate
The 7.1% PPF interest rate is still in effect. It was supposed to be lower earlier. A reduction in interest rates from 7.1% to 6.5% was possible based on the established technique for calculating the Public Provident Fund (PPF). The government, however, has chosen to maintain the current rate.
Interest rate for Sukanya Samriddhi Yojana account
The interest rate on SSY accounts stays at 8.2% for July through September of 2025. It has been a while since the government changed the interest rate on Sukanya Samriddhi Yojana (SSY) accounts. However, today was expected to see a decrease in the SSY account interest rate for the July-September quarter of FY 2025-2026.
Small savings scheme interest rate revision today:
The interest rates for a number of modest savings schemes including the Post Office Savings Account (POSA), NSC, PPF, SCSS, SSY, KVP, POMIS, Post Office Time Deposit and Recurring Deposit, for the July-September quarter of FY 2025-2026 were released today by the Ministry of Finance. The interest rates have not changed.