PPF, Sukanya Samriddhi Interest Rates Unchanged for Q2FY26
Interest Rates Frozen for the Sixth Consecutive Quarter
The Government of India has kept the interest rates unchanged for small savings schemes for the July-September 2025 quarter (Q2FY26). This is the sixth consecutive quarter that no changes have been made to the interest rates.
On June 30, 2025, the Ministry of Finance issued a notification confirming that rates for schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), and Sukanya Samriddhi Yojana will remain the same.
Current Interest Rates
- Public Provident Fund (PPF): 7.1%
- Sukanya Samriddhi Yojana: 8.2%
- Overall small savings interest range: 4% to 8.2%
Review Cycle and Policy Background
The interest rates on small savings schemes are reviewed every quarter. The last change was made in December 2023. The review is influenced by inflation, liquidity, and the yield on government securities of matching maturity.
The formula for deciding the rates was recommended by the Shyamala Gopinath Committee, which suggests that the rates should be 0.25% to 1.00% higher than the yield on comparable government bonds.
Role of Small Savings in Indian Economy
Small savings schemes are a major household saving source in India and include 12 different instruments. The funds collected are deposited into the National Small Savings Fund (NSSF), which is also used to finance the government’s fiscal deficit.