PPF Rate Frozen 9 Quarters: Is Your Return Enough?

The government has kept PPF, Sukanya Samriddhi, NSC and Senior Citizens Savings Scheme rates the same for July-September 2025. No hike, no cut. Your small savings returns stay exactly where they were — for the ninth quarter in a row.

Here's what happened: PPF continues at 7.1% per annum — unchanged since April 2023, despite multiple repo rate moves by RBI.. Sukanya Samriddhi Yojana stays at 8.2%, Senior Citizens Savings Scheme at 8.2%, NSC at 7.7% for Q2 FY26.. Small savings rates are reviewed quarterly by the Finance Ministry — they can go up or down but have held steady for over two years..

What you should do: Compare: If your bank FD is now offering 7.5–8.25%, recalculate whether PPF's lock-in still justifies the low rate for your situation.. Check your Sukanya Samriddhi passbook — at 8.2% it still beats PPF and most FDs, especially with full tax exemption on maturity.. Revisit your SCSS investment if you are a senior — 8.2% with quarterly payouts and government backing remains one of the best safe income options available..

PPF interest is tax-free at all three stages — contribution, growth, and withdrawal. At 7.1%, the effective pre-tax equivalent is roughly 10%+ for someone in the 30% bracket. That math still works.