Interest rates on key small savings schemes will be reviewed this month. Here’s what the upcoming government decision could mean for investors, especially senior citizens
Currently, post office savings accounts earn 4% interest. One-year time deposits offer 6.9%, two-year deposits 7%, and three-year deposits 7.1%. The five-year time deposit pays 7.5%, while the five-year recurring deposit offers 6.7%.The Senior Citizen Savings Scheme (SCSS) remains among the most attractive options, offering 8.2% interest. The Monthly Income Scheme pays 7.4%, NSC offers 7.7%, and PPF stands at 7.1%. Kisan Vikas Patra offers 7.5% with a 115-month maturity, while Sukanya Samriddhi accounts continue at 8.2%.Any change in interest rates directly affects millions of investors, especially senior citizens and middle-class families who rely on these schemes for safe returns. A rate cut could reduce regular income, though officials say decisions balance market conditions, inflation and social needs.
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The Centre reviews interest rates on small savings schemes every quarter. A fresh announcement is expected in the last week of December for the January-March 2026 period. Rates for PPF, NSC, Sukanya Samriddhi and SCSS will be reviewed on December 31, 2025. With market rates and inflation in focus, a possible cut is being widely speculated.
