The Government of India has kept interest rates on various small savings schemes unchanged for the second quarter of FY 2025-26, which covers the period from July 1 to September 30, 2025. This is the sixth consecutive quarter without any rate revision, according to a notification issued by the Ministry of Finance on Monday, June 30, 2025.
According to the statement, “The rates of interest on various Small Savings Schemes for the second quarter of FY 2025-26 shall remain unchanged from those notified for the first quarter (April to June) of FY 2025-26.”
Updated Interest Rates for Q2 FY26 (July–September 2025):
Public Provident Fund (PPF): 7.1%
Sukanya Samriddhi Yojana: 8.2%
Three-Year Term Deposit: 7.1%
Post Office Savings Account: 4%
Kisan Vikas Patra (KVP): 7.5% (maturity in 115 months or 9.7 years)
National Savings Certificate (NSC): 7.7%
Monthly Income Scheme (MIS): 7.4%
These schemes, primarily operated through post offices and banks, continue to offer stable and government-backed returns. The last rate adjustment was made in Q4 FY24 (January–March 2024). Since then, the government has maintained the status quo, likely to encourage household savings amid volatile market alternatives.
According to The Hindu Business Line, these rates are reviewed quarterly to ensure competitiveness and to keep small savings attractive in comparison to riskier investments such as equities.
