PPF SCSS SSY Interest Rate Changes This Quarter
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india’s Small Savings Schemes: Interest Rate Review on September 30, 2025
Table of Contents
The Ministry of Finance is expected to announce revisions to interest rates for key small savings schemes on September 30, 2025, impacting millions of Indian savers and investors.
Published: September 24, 2025
What’s Changing and Why It Matters
The upcoming interest rate declaration will affect popular schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), sukanya Samriddhi Yojana (SSY), and the Post Office Monthly Income Scheme (POMIS). Thes schemes are favored for their safety, government backing, and tax benefits, making them a cornerstone of financial planning for many Indians.
The rates are reviewed quarterly, aligning with movements in benchmark interest rates. Recent economic indicators, including the recent rate cut by the US Federal Reserve, are closely watched as potential influences on the Indian government’s decision.
Key Schemes and Current Rates (as of September 24, 2025)
here’s a snapshot of the current interest rates for some of the most popular small savings schemes. These rates are subject to change following the September 30th announcement.
| Scheme | Current Interest Rate (per annum) | Tenure |
|---|---|---|
| Public Provident Fund (PPF) | 7.1% | 15 years (with extension options) |
| National Savings Certificate (NSC) | 6.8% | 5 or 10 years |
| Sukanya Samriddhi Yojana (SSY) | 7.6% | 21 years (or until the account holder turns 21) |
| Post Office Monthly Income Scheme (POMIS) | 7.4% | 5 years |
| Kisan Vikas Patra (KVP) | 7.5% | 120 months (10 years) |
Scheme Details
PUBLIC PROVIDENT FUND (PPF)
PPF is a long-term savings scheme offering tax benefits under Section 80C of the Income Tax Act. Contributions are eligible for tax deduction, and the interest earned and maturity amount are also tax-free. The current interest rate is 7.1% per annum, compounded annually.
NATIONAL SAVINGS CERTIFICATE (NSC)
NSC is a fixed-income investment offering a guaranteed return over a specific period. Its available for 5 or 10-year tenures, with the interest rate currently at 6.8% per annum. Interest earned is taxable, but investments qualify for tax deduction under Section 80C