Introduction: What’s New for Central Government Employees & Pensioners
The Government of India’s Ministry of Finance announces interest rates on Small Savings Schemes every quarter. For the October-December 2025 quarter (Q3 FY 2025-26), the government has maintained stable interest rates across all small savings instruments, continuing the trend from previous quarters.
This quarterly revision affects millions of central government employees, pensioners, and families who rely on these secure investment options. Whether you’re planning for retirement through PPF, saving for your daughter’s future with Sukanya Samriddhi, or seeking stable returns post-retirement through SCSS, understanding these rates is crucial for your financial planning.
Official Interest Rates Table: October-December 2025
Here are the official interest rates for Small Savings Schemes applicable from October 1, 2025 to December 31, 2025:
| Scheme Name | Maturity Period | Interest Rate (% p.a.) |
| Post Office Savings Account | On Demand | 4.0% |
| 1-Year Time Deposit | 1 Year | 6.9% |
| 2-Year Time Deposit | 2 Years | 7.0% |
| 3-Year Time Deposit | 3 Years | 7.1% |
| 5-Year Time Deposit | 5 Years | 7.5% |
| 5-Year Recurring Deposit | 5 Years | 6.7% |
| Senior Citizens Savings Scheme (SCSS) | 5 Years | 8.2% |
| Public Provident Fund (PPF) | 15 Years | 7.1% |
| National Savings Certificate (NSC) | 5 Years | 7.7% |
| Sukanya Samriddhi Account (SSA) | Till girl attains 21 years | 8.2% |
| Kisan Vikas Patra (KVP) | 123 months (10 years 3 months) | 7.5% |
| Monthly Income Scheme (MIS) | 5 Years | 7.4% |
Note: The Government of India has decided to keep interest rates unchanged for the October-December 2025 quarter. All rates remain the same as the previous quarter (July-September 2025), providing stability and predictability for savers and investors across the country.
Official Government Circular & Notification
The Ministry of Finance, Department of Economic Affairs, has issued the official notification F. No. 1(4)-NS(Vol.II)/2025 dated September 30, 2025, specifying the interest rates on Small Savings Schemes for the October-December 2025 quarter. You can download the official government circular from the Ministry of Finance website at https://dea.gov.in for complete details and authentication.
Which Small Savings Scheme offers the highest interest rate for Oct-Dec 2025?
Both the Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Account (SSA) offer the highest interest rate at 8.2% per annum for the October-December 2025 quarter. SCSS is designed for senior citizens aged 60 and above, while SSA is meant for girl children.
What is the current PPF interest rate and is it still tax-free?
The Public Provident Fund (PPF) currently offers an interest rate of 7.1% per annum for Oct-Dec 2025. Yes, PPF continues to enjoy full tax benefits under EEE (Exempt-Exempt-Exempt) status, making it completely tax-free on contributions (up to ₹1.5 lakh under 80C), interest earned, and maturity proceeds.
Is SCSS better than bank fixed deposits for retired government employees?
Yes, the Senior Citizens Savings Scheme offers 8.2% interest, significantly higher than most bank FDs. Additionally, SCSS provides tax deduction under Section 80C and quarterly interest payments, making it ideal for retired central government employees and pensioners seeking regular income.
For detailed calculations and investment planning, explore our comprehensive resources: Use our PPF Calculator to plan your long-term retirement savings, check the SCSS Calculator for post-retirement income projections, calculate your NSC maturity amount with our NSC Calculator, and read our complete guide on Best Investment Options for Pensioners to make informed financial decisions.