Small Savings Rates Unchanged for Q2 FY26: Details Here

In a move that will definitely bring relief to the conservative investors, the Modi's government 2.0 has kept the interests rates of small savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC) and Senior Citizen Savings Scheme (SCSS) unchanged for the 2nd quarter of the financial year 2025-26.

Well, this decision came despite the RBI's repo rate cut up to a cumulative 1% over the past few months.

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

Also Read: Repo Rate vs Reverse Repo Rate 2025: Key Difference

Well, these post office schemes attract lots of investors who choose to go with a low-risk plan.

Let's see the current rates for these small savings schemes.

What are the Current Rates?

The table below shows the current applicable rates for FY26:

1. Savings Deposit – 4.0 %

• 1-Year Time Deposit – 6.9 %
• 2-Year Time Deposit – 7.0 %
• 3-Year Time Deposit – 7.1 %
• 5-Year Time Deposit – 7.5 
• 5-Year Recurring Deposit – 6.7 %

2. Senior Citizen Savings Scheme (SCSS) – 8.2 %

3. Monthly Income Account Scheme – 7.4 %

4. National Savings Certificate (NSC) – 7.7 %

5. Public Provident Fund (PPF) – 7.1 %

6. Kisan Vikas Patra – 7.5 % (maturity in 115 months)

7. Sukanya Samriddhi Yojana (SSY) – 8.2 %

How are these Rates Decided?

First things first, small savings scheme rates are reviewed quarterly.

As per the recommendations of the Shyamala Gopinath Committee, rates are initially set between 25-100 basis points. These are above the government bond yields of comparable maturities.

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

Also Read: JioBlackRock Liquid Fund NFO Opens: Should You Invest?

Latest Revision on Small Savings Interest Rates

The very recent change in the small savings interest rates happened in the Q4 FY24. Then, the 3-time deposit rate was increased to 7.1% and the Sukanya Samriddhi Yojana was increased up to 8.2%. Since then, the interest rates have remained stable.

If you are one of the saver kind of person, looking for steady, government-based returns, post office schemes remain a go-to option.

However, if you want to step up your portfolio and increase your returns gradually, you can start SIP in the Best Mutual Funds in India as of today.