On September 30, 2025, the Department of Economic Affairs (DEA) under the Ministry of Finance (MoF), announced that the interest rates of Small Savings Scheme (SSS) will remain unchanged, for 3rd Quarter of Financial Year 2025-26 (Q3 FY26), i.e. from October 1, 2025, to December 31, 2025, maintaining the same rates as Q2FY26 (July 1, 2025, to September 30, 2025).
- This marks the seventh consecutive quarter with no change in SSS interest rates, which were last revised by the DEA in Q4 of FY24.
Exam Hints:
- What? Interest on SSS is kept unchanged
- Who? DEA, MoF
- Period: Q3 FY26 (October 1 – December 31, 2025)
- Last Change: Q4 FY24
- Committee: Shyamala Gopinath Committee
- First Review: 2016
Interest Rates on Small Savings Scheme (SSS):
| Instruments | Interest Rates from October 1, 2025, to December 31, 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 Schemes (SSS):
Overview: Small Savings Schemes (SSS) are government-backed instruments in India that offer safe investment options with fixed returns, aimed at promoting household savings.
Management:The schemes are primarily managed by the DEA and administered through designated banks and over 1.5 lakh Post Offices.
Committee: 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, which are 25 to 100 basis points (bps) higher than the government bond yields.
Utilization All deposits received under various SSS are pooled in the National Small Savings Fund (NSSF), which is used by the central government to finance its fiscal deficit.
About Ministry of Finance (MoF):
Union Minister – Nirmala Sitharaman (Rajya Sabha – Karnataka)
Minister of State (MoS) – Pankaj Chaudhary (Constituency – Maharajganj, Uttar Pradesh, UP)
