In June 2025, the Department of Economic Affairs (DEA) under the Ministry of Finance (MoF) announced that the Small Savings Scheme (SSS) interest rates will remain unchanged, for 2nd Quarter of Financial Year 2025-26 (Q2FY26), i.e. from July 1,2025 to September 30, 2025, maintaining the same rates as Q1FY26 (April 1,2025 to June 30,2025)
- This marks the sixth consecutive quarter with no revision in SSS interest rates, despite falling market interest rates and latest repo rate cuts by the Reserve Bank of India (RBI).
- The government reviews and updates the interest rates at the start of each quarter based on various factors such as benchmark yields of government securities, prevailing market conditions, and government policy decisions.
Note: The DEA last adjusted the interest rates on SSS in Q4 of FY24.
Interest Rates on Small Savings Scheme for Q2FY26:
| Instruments | Interest rates from July 1,2025 to September 30, 2025 |
|---|---|
| Post Office Savings Deposit (POSD) | 4.0% |
| 1-Year Post Office Time Deposit (POTD) | 6.9% |
| 2-Year Post Office Time Deposit (POTD) | 7.0% |
| 3-Year Post Office Time Deposit (POTD) | 7.1% |
| 5-Year Post Office Time Deposit (POTD) | 7.5% |
| 5-Year Post Office Recurring Deposit (PORD) | 6.7% |
| Kisan Vikas Patra (KVP) | 7.5% (will mature in 115 months) |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Senior Citizen’ Savings Scheme (SCSS) | 8.2% |
| Post Office Monthly Income Scheme (PO-MIS) | 7.4% |
| Mahila Samman Savings Certificate (MSSC) | 7.5% |
About Small Savings Scheme (SSS):
i.Small Savings Schemes (SSS) are government backed financial instruments aimed at promoting household savings and offering secure investment options.
ii.These schemes are primarily managed by the DEA and administered through Post Offices and designated banks.
- Since 2016, MoF has been reviewing the interest rates on SSS on a quarterly basis.
- The Shyamala Gopinath Committee formulated the method for determining the SSS interest rates in January 2023.
- These rates should be 25 to 100 basis points (bps) higher than the government bond yields.
iii.All deposits received under various SSS are pooled in the National Small Savings Fund (NSSF).
- Later the money in the fund is used by the central government to finance its fiscal deficit.
Recent Related News:
In May 2025, the Ministry of Road Transport and Highways (MoRTH) has notified ‘Cashless Treatment of Road Accident Victims Scheme, 2025’, nationwide, under which they will be entitled to cashless treatment up to Rs. 1.5 lakh per accident per person.
- The Scheme has come into force with effect from May 5, 2025 for “Any person being a victim of a road accident arising out of the use of a motor vehicle, occurring on any road”.
