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Government Maintains Small Savings Interest Rates for July–September Quarter

The formula-based review ties scheme yields to bond markets with a set spread, safeguarding savers as the government channels funds into its deficit financing

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Overview

  • Interest rates on small savings schemes have remained static for the sixth quarter in a row, covering July 1 to September 30, 2025.
  • The Public Provident Fund continues at 7.1%, Sukanya Samriddhi Yojana at 8.2%, National Savings Certificate at 7.7%, Senior Citizen Savings Scheme at 8.2% and the Monthly Income Scheme at 7.4%.
  • Rates are decided quarterly by the finance ministry using Shyamala Gopinath Committee guidelines that tie yields to similar-maturity government securities plus a fixed margin.
  • The decision holds steady despite a 100-basis-point cut in the RBI’s policy rate and significant declines in bond yields early this year.
  • Proceeds from these schemes flow into the National Small Savings Fund, with ₹3.43 lakh crore slated for deficit financing in FY2025-26.