The government has decided not to change the interest rates on small savings schemes for the October to December quarter of 2025. This means that the same rates that were in place for the earlier quarter (July to September 2025) will continue. The Ministry of Finance announced this decision in an official notification.
These small savings schemes are very popular among ordinary people because they are safe and give steady returns. Most of these schemes are run by post offices and banks. People use them to save money for the future and to earn interest that is higher than what they usually get in savings accounts.
According to the finance ministry, this is the sixth quarter in a row where there has been no change in rates. The last time the government made any changes in the interest rates was in the fourth quarter of 2023-24. Since then, the rates have remained the same.
In the official statement, the government listed the rates that will apply for the coming three months. Deposits under the Sukanya Samriddhi Yojana, which is a savings plan for the girl child, will continue to earn 8.2 per cent interest. This scheme is very popular among parents who want to save for their daughter’s education and marriage.
The three-year term deposit will give 7.1 per cent interest, which is the same as in the current quarter. The Public Provident Fund (PPF), which is one of the most well-known long-term saving options, will also continue at 7.1 per cent. The normal post office savings account will still give 4 per cent interest.
The National Savings Certificate (NSC) will keep its interest rate at 7.7 per cent. The Kisan Vikas Patra (KVP), another popular option, will give 7.5 per cent interest. The investment in KVP will mature in 115 months.
Similarly, the monthly income scheme will continue with 7.4 per cent interest. Many retired people prefer this scheme because it gives a fixed monthly return and acts like a regular income source.
All these unchanged rates show that the government has chosen stability over change, possibly to give savers confidence during uncertain times.
Small savings schemes are a big part of the financial life of ordinary Indians. They are considered safe because they are backed by the government, and they also offer better interest than bank savings accounts. Millions of families depend on these schemes for their long-term financial security.
For example, the Sukanya Samriddhi Yojana helps parents save for their daughter’s future. The PPF helps middle-class families create a retirement fund because the money grows steadily and the scheme is risk-free. The NSC and KVP are often used by people who want safe returns over a fixed time period. The monthly income scheme is mostly chosen by retired people who do not have a salary anymore but still need a regular source of income.
When the government keeps the interest rates steady, it gives families certainty in their financial planning. They can be sure about how much money they will receive at the end of their investment or as regular income. This is very important in a country where most people still prefer safe savings options over risky investments like shares or mutual funds.
The decision to not change rates also shows that the government wants to keep things stable. Frequent changes in interest rates can confuse people and affect their savings plans. By keeping the rates steady for six quarters in a row, the government is giving a sense of security to small savers.
It is important to know that the government reviews and announces the interest rates on small savings schemes every quarter of the financial year. That means four times in a year, the finance ministry looks at the economic conditions, inflation, and other financial factors, and then decides if the rates should be increased, reduced, or kept the same.
In this case, for the October to December 2025 quarter, the government has decided to keep them unchanged. The decision will affect millions of savers who have invested in these schemes through post offices and banks.
Experts say that since inflation has been high in recent times, many people expected that the government might raise interest rates to help savers. However, the decision to keep the rates steady shows that the government may be trying to balance between the needs of savers and the overall economic situation.
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The unchanged interest rates will give stability to small savers for another three months. People can continue investing in schemes like PPF, NSC, Sukanya Samriddhi Yojana, and Kisan Vikas Patra without worrying about any reduction in returns. For families, especially middle-class households and retired citizens, this decision brings some relief.
The government will again review the rates at the end of December and announce the interest rates for the January to March 2026 quarter. Until then, savers can plan their investments with the current rates in mind.
By keeping the interest rates stable, the government has ensured that there is no sudden change for people who depend on these schemes. For now, the focus of investors will be on making the most of these safe savings options, while waiting for the next announcement in the coming quarter.
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