Small savings schemes like PPF, NSC, SCSS, Sukanya Samriddhi Yojana and others remain some of the safest and most popular investment options for Indian households. They are not only backed by the Government of India but also provide assured returns along with tax benefits in many cases.
Why These Interest Rates Matter
At the end of every quarter, the Department of Economic Affairs (DEA) under the Ministry of Finance reviews and notifies the latest interest rates on small savings schemes for the upcoming quarter. This ensures that savers stay updated with the current returns on their investments. The official notification is published by the Ministry, and investors can rely on it for accurate figures.
Role of National Savings Institute
The National Savings Institute (NSI) works under the Department of Economic Affairs, Ministry of Finance, Government of India. It is entrusted with the task of mobilizing savings through various national small savings schemes, which are operated across India through Post Offices and designated banks. This makes these schemes easily accessible to millions of investors.
Latest Interest Rates (FY 2025-26)
Below is the updated table of interest rates on PPF, NSC, and other small savings schemes for FY 2025-26, as declared by the Department of Economic Affairs. Investors can use this information to plan their savings and investments effectively.
| Interest Rate on National Small Savings Schemes w.e.f. 1st April 2025 & onwards | ||||||||
|---|---|---|---|---|---|---|---|---|
| F Y 2025- 2026 | ||||||||
| Scheme Name | Apr-Jun Qtr. | Jul-Sep Qtr. | Oct.- Dec. Qtr. | Jan-Mar Qtr. | ||||
| Savings Account (Post Office) | 4 | 4 | 4 | |||||
| 1 Year Time Deposit (Post Office) | 6.9 | 6.9 | 6.9 | |||||
| 2 Year Time Deposit (Post Office) | 7 | 7 | 7 | |||||
| 3 Year Time Deposit (Post Office) | 7.1 | 7.1 | 7.1 | |||||
| 5 Year Time Deposit (Post Office) | 7.5 | 7.5 | 7.5 | |||||
| 5 Year Recurring Deposit (Post Office) | 6.7 | 6.7 | 6.7 | |||||
| 5 Year Senior Citizens Savings Scheme (Post Office) | 8.2 | 8.2 | 8.2 | |||||
| 5 Year Monthly Income Account (Post Office) | 7.4 | 7.4 | 7.4 | |||||
| 5 Year National Savings Certificate (Post Office) | 7.7 | 7.7 | 7.7 | |||||
| Public Provident Fund (Post Office and Banks) | 7.1 | 7.1 | 7.1 | |||||
| Sukanya Samriddhi Account Scheme (Post Office and Banks) | 8.2 | 8.2 | 8.2 | |||||
| Kisan Vikas Patra (Post Office) | 7.5 (will mature in 115 months) | 7.5 (will mature in 115 months) | 7.5 (will mature in 115 months) | |||||
Official Notification Regarding Revised Interest Rates for Q3 of 2025-26
National Savings Schemes – At a Glance
- Post Office Saving Account:
Open with a minimum of ₹500; there is no upper limit. Maturity: No fixed period. Tax note: interest on post-office savings accounts has limited exemptions under the Income-tax law (Section 10(15)) and savers may also use the general deduction under Section 80TTA subject to limits. Always check the latest income-tax rules for exact applicability. - National Savings Recurring Deposit Account:
A disciplined 5-year monthly deposit plan with minimum instalment of ₹100 per month; no maximum ceiling. Maturity: 5 years (premature closure permitted after 3 years under scheme rules). Tax benefit: standard taxation applies; not a Section 80C tax-saver. - National Savings Time Deposit Account:
Fixed-term deposits available for 1, 2, 3 or 5 years. Minimum deposit ₹1,000 (no maximum). Maturity: as per chosen tenure. Tax benefit: only the 5-year term is eligible for deduction under Section 80C. - National Savings (Monthly Income Account) Scheme (MIS):
Provides regular monthly interest from a lump-sum deposit. Maturity: 5 years. Minimum deposit ₹1,000 (in multiples). Limit: maximum ₹9 lakh for a single account and ₹15 lakh for a joint account. Premature withdrawal: permitted after one year. Tax: interest is fully taxable. - Senior Citizen Savings Scheme (SCSS):
Designed for senior citizens as a safe income option. Maturity: 5 years (extension permitted once). Minimum deposit ₹1,000; maximum up to ₹30 lakh. Interest is payable quarterly. Tax benefit: investment qualifies under Section 80C; interest is taxable. - National Savings Certificate (NSC – VIII Issue):
A guaranteed-return certificate with minimum investment of ₹1,000. Maturity: 5 years. Tax benefit: contributions qualify under Section 80C; interest is compounded annually and taxable. - Kisan Vikas Patra (KVP):
A simple savings certificate that doubles your money at maturity. Maturity: period is variable (currently ~115 months, subject to revision). Minimum investment ₹1,000; no maximum. Premature withdrawal: allowed after 2½ years under scheme rules. Tax: interest is taxable. - Public Provident Fund (PPF) Scheme:
A long-term, tax-efficient option for retirement/wealth building. Maturity: 15 years (extendable in 5-year blocks). Annual deposit range ₹500 to ₹1,50,000. Tax benefit: contributions qualify under Section 80C; interest and maturity proceeds are fully tax-free. Partial withdrawals and loans are allowed after specified periods. - Sukanya Samriddhi Account (SSY):
A girl child–focused savings plan. Maturity: 21 years from account opening. Minimum deposit ₹250; maximum ₹1,50,000 per financial year. Tax benefit: contributions qualify under Section 80C and interest is tax-free. Up to 50% of the balance can be withdrawn for higher education after the girl turns 18 or passes Class 10 (whichever is earlier).
Disclaimer: The above information is provided for general awareness only. Scheme features, rules, limits, and tax provisions are subject to change by the Government of India. Readers should verify the latest details from official sources (India Post, National Savings Institute, Income Tax Department) before making any investment decisions. This article does not constitute financial or tax advice.
Also read : PPF Scheme Magic: How to Become a Crorepati with Just ₹1.5 Lakh a Year
पी पी एफ योजना: सिर्फ ₹1.50 लाख सालाना निवेश से कैसे बन सकते हैं करोड़पति