PPF Interest Rate 2025-26: Latest Small Savings Scheme Rates For PPF, SSY And More

According to the latest announcement by the Government of India, the interest rates on the various small savings scheme such as Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) will remain unchanged for the first quarter of the financial year 2025-26 (April to June 2025). ​

Interest Rates of Major Key Small Savings Schemes:

• Public Provident Fund (PPF): It has an interest rate of 7.1% per year, compounded as well. ​
• National savings certificate (NSC) – 7.7% per annum interest rate; the interest is compounded annually. ​
• Senior Citizens Savings Scheme (SCSS): Offers an interest rate of 8.2% per annum, payable quarterly. ​
• An interest rate of 8.2% per annum is also provided by Sukanya Samriddhi Yojana (SSY) in which interest is compounded annually. ​

Though these rates are for a period between April 1, 2025 and June 30, 2025, they are in consonance with the rates notified for Oct, Nov and Dec 2024 quarters. Interest rates for the small savings schemes are announced by the government on a quarterly basis by taking into consideration price levels and yields on government securities in the market.​

Other Small Savings Schemes and Their Interest Rates:

• Interest rate: 4% per annum: Post Office Savings Deposit.​
• 1-Year Time Deposit: Offers an interest rate of 6.9% per annum.
• 2-Year Time Deposit: Provides an interest rate of 7% per annum.​
• 3-Year Time Deposit: Offers an interest rate of 7.1% per annum.​
• 5-Year Time Deposit: Provides an interest rate of 7.5% per annum.​
• 3. 5-Year Recurring Deposit: You can avail an interest rate of 6.7% per annum.​
• Monthly Income Account Scheme: Provides an interest rate of 7.4% per annum.​
• Kisan Vikas Patra (KVP): An offer of rate of interest 7.5% per annum combined with investment doubling in about 115 months.​

These interest rates are for the April to June 2025 quarter and could vary in other quarters, depending on the government reviews to be carried out periodically.​

Implications for Investors:

Keeping the interest rates stable makes it easy for investors that use the fixed income instrument. Tax benefits also add to the charm of PPF and SSY and the interest rate it offers is more substantial than other savings in schemes. It is important that investors keep an eye on future statements about the changes in interest rates and make their investments accordingly.​

Conclusion

Saying that, this decision would be taken by the government so that the interest rates are retained the same even and predictably for the investors in small savings schemes for the first quarter of FY 2025 – 26. Yet, these investment schemes keep paying out competitive returns, especially for due conservative investors whose main priority is safety and tax advantages.

Investors are advised to keep informed about the changes, such that they can change their investment strategy accordingly; based on their financial goals and market environment. Additionally, financial gurus state that by integrating these secured instruments with other assets, portfolio immunity against the sway and fluctuation of the markets will be possible.