Post office scheme interest rate
If you have invested in post office small savings schemes such as PPF (Public Provident Fund), NSC (National Saving Certificate), SCSS (Senior Citizen Savings Scheme) or Sukanya Samriddhi Yojana, then this news is very important for you.
The government reviews the interest rates of these schemes every quarter. Now the next review is going to be held on September 30, 2025, and interest rates for the October-December quarter can be announced soon. According to an ET report, experts believe that this time there is every possibility of cutting interest rates.
Why can interest rates decrease?
This year, the Reserve Bank of India (RBI) has cut the repo rate thrice. At the beginning of the year, the repo rate was 6.50%, which has now come down to 5.50%. The reducing repo rate directly affects the FD rates of banks and small savings schemes of the government.
Apart from this, the yield of government bonds i.e. return has also decreased this year. For example, the yield of 10 -year government bonds was 6.779% in January, which has now come down to 6.483%. An ET report said that the interest rates of small savings schemes are related to the returns of these bonds. That is, when the bond yield decreases, the possibility of cutting interest rates increases.
What are the current interest rates?
The interest rates of some major schemes for the July-September 2025 quarter are as follows:
Interest rate fixed in NSC and SCSS
Some post office schemes like NSC and SCSS are fixed at the interest rate, that is, the rate you have invested, it is fixed for the entire lock-in period. For example, if you have invested in SCSS now and the interest rate is 8.2%, then you will get the same rate for the next 5 years, even if it is cut later. On the other hand, the rates in schemes like RD and Saving Accounts change from time to time, so a little thought should be done while investing in them.