Government keeps small savings scheme interest rates unchanged for third quarter

The Union Ministry of Finance announced on Tuesday that interest rates for public small savings schemes, including the Public Provident Fund and the National Savings Certificate, will remain unchanged for the October-December quarter of the current financial year.

The notification issued by the Department of Economic Affairs ensures that depositors will continue to earn the prevailing returns through post offices and designated banks across the country through the third quarter ending December 31. This decision maintains the status quo on government-backed fixed-income instruments, which serve as primary investment avenues for retail savers seeking predictable, low-risk returns.

Under the schedule released for the upcoming quarter, the Public Provident Fund interest rate stays at 7.1 percent per annum. Similarly, the National Savings Certificate will continue to yield 7.7 percent.

Senior citizens relying on fixed periodic payouts will find the Senior Citizens Savings Scheme retained at 8.2 percent. The Sukanya Samriddhi Account scheme for the girl child also holds firm at 8.2 percent.

Other fixed-income products under the small savings umbrella see no movement either. The Post Office Monthly Income Scheme keeps its return at 7.4 percent, while the Kisan Vikas Patra offers 7.5 percent, maintaining a maturity period calculated according to prevailing sovereign guidelines. Post office time deposits ranging from one to five years alongside recurring deposit accounts retain their existing yield structures, with the five-year term deposit yielding 7.5 percent.

Interest rates on these government-managed accounts are reviewed quarterly by the administration, benchmarked against average yields on sovereign securities of comparable maturities. The formula-based pricing aims to align small savings returns with broader market debt trends while protecting retail investors from sudden volatility.

With this announcement, the standing interest rates carry forward without revision from the preceding July-September quarter, maintaining stability for household financial planning as the fiscal year moves toward its second half.