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Small saving schemes rates October–December 2025: Festive cheer or status quo? Will Govt hike rates?

Upstox
By Upstox News Desk

3 min read | Updated on September 29, 2025, 10:51 IST

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SUMMARY

The government has decided to keep interest rates unchanged for small saving schemes for the July–September 2025 quarter, despite the RBI having already cut the repo rate by around 100 basis points over the past few meetings.

Small saving schemes interest rates for October-December 2025

The government determines the interest rates for these small savings schemes every quarter.

Various small saving schemes like Recurring Deposit (RD), Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Kisan Vikas Patra, National Savings Certificate (NSC), and Senior Citizen Savings Scheme (SCSS) have their interest rates due for review for the October to December quarter. The government determines the interest rates for these small savings schemes every quarter.
Interest rates on small saving schemes for the July-September 2025
Public Provident Fund: PPF is a long-term savings scheme with income tax benefits, ideal for retirement planning, offering an interest rate of 7.1%.
Senior Citizen Savings Scheme: SCSS is a government-backed savings scheme designed for senior citizens to provide regular income, with an interest rate of 8.2%.
Sukanya Samriddhi Yojana: SSY is a savings scheme aimed at securing the future of the girl child, offering high returns with an interest rate of 8.2%.
National Savings Certificate: NSC is a fixed income investment scheme suitable for risk-averse investors, providing a guaranteed interest rate of 7.7%.
Post Office Monthly Income Scheme: POMIS is a small savings scheme that pays a fixed monthly income, currently yielding an interest rate of 7.4%.
Kisan Vikas Patra: KVP is a savings certificate that doubles the investment over a specific period, backed by the government, offering an interest rate of 7.5%.
1-Year Fixed Deposit: A short-term deposit with banks or post offices providing an interest rate of 6.9%, suitable for conservative investors.
2-Year Fixed Deposit: A medium-term fixed deposit option with an interest rate of 7.0%, balancing liquidity and returns.
3-Year Fixed Deposit: Offers a slightly higher interest rate of 7.1% for those willing to lock their money for a longer term.
5-Year Fixed Deposit: A long-term fixed deposit scheme offering a competitive interest rate of 7.5%, ideal for steady growth.
5-Year Recurring Deposit: RD is a disciplined savings plan allowing monthly deposits over five years, currently offering an interest rate of 6.7%.
What’s the current situation?

The government has decided to keep interest rates unchanged for the July–September 2025 quarter, despite the RBI having already cut the repo rate by around 100 basis points over the past few meetings.

Small saving schemes interest rates for October-December 2025: Could rates go up?

A rate hike is possible, but it’s not very likely at this stage. While an increase could help boost consumer sentiment and spending ahead of the festive season.

Will the RBI cut rates or hold steady?
In other news, most experts expect the Reserve Bank of India (RBI) to maintain the current repo rate at 5.5% in the upcoming policy announcement. However, a recent research report from SBI has advocated for a 25 basis point (bps) rate cut, calling it the "best possible option" in the current economic environment.

So, will the RBI cut the repo rate again or hit the pause button? The decision will have a direct impact on savers investing in fixed deposits and borrowers repaying home loans.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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