Daijiworld Media Network – New Delhi

New Delhi, Oct 3: In a move that may disappoint some small savers but offer consistency to others, the Ministry of Finance has decided to retain the existing interest rates on all Post Office Small Savings Schemes for the October–December 2025 quarter.

Despite expectations of an increase amid rising inflation and festive spending, the Ministry has chosen to maintain status quo, continuing with the same rates as the July–September quarter, according to official sources.

Interest Rates (Oct–Dec 2025):

• Savings Deposit – 4.0%

• 1-Year Term Deposit – 6.9%

• 2-Year Term Deposit – 7.0%

• 3-Year Term Deposit – 7.1%

• 5-Year Term Deposit – 7.5%

• 5-Year Recurring Deposit (RD) – 6.7%

• National Savings Certificate (NSC, 5 years) – 7.0%

• Monthly Income Scheme (MIS) – 7.4%

• Public Provident Fund (PPF) – 7.1%

• Kisan Vikas Patra (KVP) – 7.5%

• Sukanya Samriddhi Yojana (SSY) – 8.2%

• Senior Citizens Savings Scheme (SCSS) – 8.2%

Highest Returns: SSY and SCSS

The Sukanya Samriddhi Yojana (targeted at the girl child) and the Senior Citizens Savings Scheme continue to top the interest chart at 8.2%, providing the highest returns among all small savings instruments.

Notably, SCSS offers a better return than most fixed deposits for senior citizens in leading commercial banks. Similarly, the 5-year Post Office term deposit provides higher interest rates than comparable FD options in both public and private sector banks.

PPF: Still a favourite for long-term, tax-free growth

The Public Provident Fund (PPF), which offers 7.1% interest, remains a strong choice for long-term investors seeking tax-free returns. While not the highest in terms of yield, PPF continues to offer a safe, government-backed investment with tax benefits under Section 80C of the Income Tax Act.

The scheme requires a minimum lock-in of 15 years, making it ideal for disciplined, long-horizon saving. Investors can contribute up to Rs 1.5 lac per annum, and even after maturity, the account can be extended in blocks of five years with or without further contributions.