Overview of the Oct-Dec 2025 Rate Announcement
The Government of India has announced the interest rates for its post office savings schemes for the October-December 2025 quarter. Importantly, there are no changes to several popular small savings schemes this quarter. For the seventh consecutive quarter, schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and the Post Office Monthly Income Scheme (POMIS) continue at their existing rates. The revised rates will apply from October 1, 2025, to December 31, 2025, giving investors a stable roadmap for the next three months.
Rates Snapshot for Oct-Dec 2025
Below are the updated interest rates for key post office schemes and fixed deposits. These figures reflect the government’s latest notification and are effective for Oct 1 to Dec 31, 2025.
Public Provident Fund (PPF)
7.1% per annum. A long-term savings instrument suitable for retirement planning and tax benefits under Section 80C.
Senior Citizens Savings Scheme (SCSS)
8.2% per annum. Aimed at senior citizens, offering relatively higher returns with quarterly interest payouts.
Sukanya Samriddhi Yojana (SSY)
8.2% per annum. Reserved for the savings of the girl child under ten, with tax-saving benefits and a fixed lock-in period.
National Savings Certificate (NSC)
7.7% per annum. A popular small savings instrument with a fixed tenure and tax benefits.
Post Office Monthly Income Scheme (POMIS)
7.4% per annum. Provides a steady monthly income, often favored by retirees seeking regular cash flow.
Kisan Vikas Patra (KVP)
7.5% per annum. A scheme designed to double the investment over a predetermined period, subject to conditions.
Fixed Deposits (Post Office FD)
– 1-year FD: 6.9%
– 2-year FD: 7.0%
– 3-year FD: 7.10%
– 5-year FD: 7.5%
5-Year Recurring Deposit (RD)
6.7% per annum. Ideal for systematic monthly savings with a fixed tenure.
What This Means for Savers
With the absence of rate changes in the small savings family for the seventh straight quarter, investors can plan without fearing sudden swings in returns. The PPF, SSY, NSC, and POMIS remain stable, preserving their role in tax-advantaged long-term savings and regular income strategies. For those prioritizing guaranteed monthly cash flow, POMIS remains a viable option, while fixed deposits across different tenors offer a predictable yield curve for conservative savers.
Quick Guidance for Investors
If you are saving for education or a girl child’s future, SSY at 8.2% remains attractive, assuming you meet the scheme’s eligibility. For retirement planning, PPF at 7.1% and SCSS at 8.2% provide steady, risk-free accumulations. Small savings NSC yields 7.7%, which can complement other tax-saving investments. For those seeking regular monthly income, POMIS at 7.4% offers monthly payouts, while longer-term FD options up to 5 years yield up to 7.5% depending on tenure.
Bottom Line
The October-December 2025 quarter brings stability across most post office savings schemes. Individual needs—whether tax efficiency, regular income, or long-term growth—will determine the best fit. Always cross-check the latest circular from the Department of Economic Affairs for any special conditions or changes in eligibility before investing.
