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2h ago

Government Leaves Post Office Small Savings Rates Unchanged for Oct–Dec Quarter

The decision defies formula signals from lower government bond yields following this year’s RBI rate cuts.

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Overview

  • The Finance Ministry notified that interest rates for all small savings schemes will be maintained for October 1 to December 31, 2025.
  • Key rates remain PPF at 7.1%, Sukanya Samriddhi at 8.2%, NSC at 7.7%, Monthly Income Scheme at 7.4%, savings account at 4%, and Kisan Vikas Patra at 7.5% with a 115‑month maturity.
  • The hold comes despite the Shyamala Gopinath benchmark pointing lower, with an average 10‑year G‑Sec yield of 6.411% plus 25 bps implying a PPF rate near 6.66%.
  • The RBI reduced the repo rate by 100 basis points in 2025 and banks have lowered fixed‑deposit returns, yet the government opted not to align small‑savings rates this quarter.
  • The last notable adjustment was in January–March 2024, when the 3‑year post office deposit was raised to 7.1% and the Sukanya Samriddhi rate to 8.2%.