Govt leaves interest rates on small savings schemes unchanged for Oct-Dec
This story was originally published at 18:03 IST on 30 September 2025
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--Govt leaves interest rates on small savings schemes unchanged for Oct-Dec
NEW DELHI – The government has left interest rates on all small savings schemes unchanged for Oct-Dec. The interest rates on small savings schemes have been the same for over a year now.
The government had last raised the rate of interest on small savings schemes by 10-20 basis points for the quarter ended Mar. 31, 2024. Between October 2022 and March 2024, it had increased interest rates on the schemes by 60-160 bps.
Interest rates on small savings schemes are decided by the government, although any changes to them are expected to be determined by movements in market yields on government securities of similar maturity. Therefore, when market yields on government securities decline, interest rates on small savings schemes should fall. A spread of 0-100 bps is applied to the market yields to arrive at the small savings interest rates.
However, these interest rates have been left unchanged for Jul-Sept, even though the Reserve Bank of India's Monetary Policy Committee has cut the policy repo rate by 100 basis points since February, and government bond yields have changed. In Jun-Aug, which was the reference period for interest rates on small savings for Oct-Dec, the yield on 10-year government bonds rose 28 bps and that on five-year securities jumped 41 bps.
Interest rates on various small savings schemes for Oct-Dec are as follows:
| Instrument | Rate of interest |
| Savings deposit | 4.0 |
| One-year time deposit | 6.9 |
| Two-year time deposit | 7.0 |
| Three-year time deposit | 7.1 |
| Five-year time deposit | 7.5 |
| Five-year recurring deposit | 6.7 |
| Senior citizen savings scheme | 8.2 |
| Monthly income account scheme | 7.4 |
| National Savings Certificate | 7.7 |
| Public Provident Fund scheme | 7.1 |
| Kisan Vikas Patra | 7.5 |
| Sukanya Samriddhi account scheme | 8.2 |
End
Reported by Krity Ambey
Edited by Avishek Dutta
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