Small savings rates unchanged for Q2FY26: Check what you'll earn

Despite RBI's rate cuts, the government has kept PPF, NSC, SCSS and other small savings scheme rates unchanged for July-September 2025. Here's the full list of interest rates you'll earn this quarter

In a move that will come as a relief to conservative investors, the government has kept the interest rates of small savings schemes, such as the Public Provident Fund (PPF), National Savings Certificate (NSC), and Senior Citizen Savings Scheme (SCSS), unchanged for the second quarter of the financial year 2025-26 (FY26).

 

This decision comes despite a cumulative 1 per cent repo rate cut by the Reserve Bank of India (RBI) over the past few months.

 

The unchanged rates will apply for the quarter from July 1 to September 30, 2025, according to the latest circular issued by the Department of Economic Affairs, Ministry of Finance, on June 30.

 

What are the current rates?

These post office schemes, often preferred by risk-averse households, continue to offer attractive interest rates. Here are the applicable rates for Q2 of FY26:

 

Savings Deposit – 4.0 per cent

 

1-Year Time Deposit – 6.9 per cent

 

2-Year Time Deposit – 7.0 per cent

 

3-Year Time Deposit – 7.1 per cent

 

5-Year Time Deposit – 7.5 per cent

 

5-Year Recurring Deposit – 6.7 per cent

 

Senior Citizen Savings Scheme (SCSS) – 8.2 per cent

 

Monthly Income Account Scheme – 7.4 per cent

 

National Savings Certificate (NSC) – 7.7 per cent

 

Public Provident Fund (PPF) – 7.1 per cent

 

Kisan Vikas Patra – 7.5 per cent (maturity in 115 months)

 

Sukanya Samriddhi Yojana (SSY) – 8.2 per cent

 

How rates are decided

Small savings scheme rates are reviewed quarterly. According to the recommendations of the Shyamala Gopinath Committee, rates should ideally be set 25-100 basis points above government bond yields of comparable maturities.

 

However, the government has the discretion to deviate from this formula, and has done so on several occasions, especially when it sees merit in protecting household incomes or maintaining retail investor interest.

 

Last revision

 

The most recent revision in small savings interest rates happened in Q4FY24. Then, the 3-year time deposit rate was increased to 7.1 per cent and Sukanya Samriddhi Yojana to 8.2 per cent. Since April 2024, all other rates have remained stable.

 

For savers looking for steady, government-backed returns, post office schemes remain a strong option in the current rate environment