Overview: Oct-Dec 2025 Interest Rates
The Ministry of Finance has announced the interest rates for the October-December 2025 quarter. Small saving schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizens Savings Scheme (SCSS), and National Savings Certificates (NSC) have been kept unchanged, continuing a streak of steady rates. At the same time, fixed deposits offered by the Post Office and related saving schemes carry competitive yields for the period from October 1 to December 31, 2025. Here is a concise look at where the rates stand for various schemes under the Post Office Savings umbrella.
Key rate snapshot for Oct-Dec 2025
Note: The rates listed below are applicable from October 1, 2025 to December 31, 2025, as notified by the central government. Small saving schemes in this update remain largely unchanged for the seventh consecutive quarter, while fixed deposits reflect modest changes across different tenors.
Public Provident Fund (PPF)
PPF offers a long-term saving option with a rate of 7.1% per annum for the current quarter. It is widely used for retirement planning and tax-efficient growth, given its extended lock-in and compounding structure.
Senior Citizens Savings Scheme (SCSS)
SCSS remains an attractive choice for senior citizens; the rate stands at 8.2% per annum. This higher coupon supports steady income during retirement while preserving capital within a secure government-backed product.
Sukanya Samriddhi Yojana (SSY)
SSY continues to offer 8.2% interest per annum, aimed at the long-term education and welfare of girl children. The scheme remains popular for parents saving for their daughters’ future needs.
National Savings Certificate (NSC)
NSC yields 7.7% per annum for the quarter. NSC is favored by risk-averse investors seeking a fixed return with the benefit of tax relief under Section 80C in India.
Post Office Monthly Income Scheme (POMIS)
POMIS provides a steady monthly income with a rate of 7.4% per annum. It is a good fit for investors seeking regular cash flows from their savings.
Fixed deposits and other term options
Kisan Vikas Patra (KVP)
KVP continues to offer 7.5% interest, with the potential to double the invested amount depending on the term and compounding. It remains a preferred choice for those seeking a safe, government-backed growth opportunity.
1 Year Fixed Deposit
The 1-year fixed deposit rate is 6.9%. Shorter tenure deposits provide liquidity with a reasonable return, suitable for investors needing flexibility.
2 Year Fixed Deposit
2-year fixed deposits yield 7.0%, signaling a modest step-up in rate with longer lock-in while balancing liquidity needs.
3 Year Fixed Deposit
3-year fixed deposits offer 7.10% per annum, combining a respectable return with a relatively moderate risk profile for conservative savers.
5 Year Fixed Deposit
5-year fixed deposits carry 7.5% interest, making it a popular choice for investors aiming for higher returns with a longer horizon.
5 Year Recurring Deposit (RD)
5-year recurring deposits provide 6.7% interest, appealing to savers who prefer disciplined, regular contributions over time.
What this means for investors
The current slate of rates suggests a stable policy stance across the Post Office Savings Schemes. Investors can expect reliable, risk-free returns with government-backed instruments. While short-term fixed deposits offer modest yields, longer tenors are more attractive for compounding benefits over time. It is important to compare how the rate of return from the chosen scheme stacks against your financial goals, such as retirement planning, children education, or steady income generation.
Choosing the right scheme
To select the most suitable product, consider your time horizon, liquidity needs, tax implications, and whether you prefer regular income (as with POMIS) or capital growth (as with PPF, NSC, or SSY). For parents saving for a daughter’s future, SSY remains a strong long-term option. Senior citizens may lean toward SCSS for higher yields, while fixed deposits suite those who can lock in funds for a defined period and want predictable returns.
Tax considerations
Tax benefits differ by scheme. For instance, NSC contributions qualify under Section 80C, while PPF offers tax-free interest and maturity. Always account for tax implications in your overall investment plan and consult updated government guidance to understand any changes in tax treatment.
How to invest and next steps
You can invest in these Post Office Savings Schemes at your nearest post office or through official channels. Review the latest notification from the Finance Ministry, calculate your expected returns using the official calculators, and align your investments with your financial goals and risk tolerance. Staying informed about quarterly rate changes helps you optimize your savings portfolio while maintaining a disciplined approach toward wealth creation.
