1. Key Announcement
- The Government of India has maintained the interest rate on all the Small Savings Schemes at the same rate during the seventh consecutive quarter.
- This revision cycle will start on the 1 st of October, 2025.
2. Key Schemes Interest Rates (Oct-Dec 2025 Quarter)
- The interest rates will still be maintained as follows:
- Sukanya Samriddhi Scheme: 8.2%
- Senior citizen savings scheme (SCSS): 8.2%.
- National Savings Certificate (NSC): 7.7%.
- Kisan Vikas Patra (KVP): 7.5% (Maturity Period: 115 months)
- Public Provident Fund (PPF): 7.1%
- Monthly Income Scheme: 7.4%
- Post Office Savings Deposit: 4.0%
- 3-Year Term Deposit: 7.1%
3. Target Public Provident Fund (PPF).
- Interest Rate Mechanism: PPF rate is checked on quarterly basis by the Ministry of Finance. It is pegged on the 10-year government bond (G-Sec) yield of a spread of 25 basis points as suggested by the Shyamala Gopinath Committee.
- Deposit Limits: The maximum and minimum amount in terms of deposits allowed per financial year is 1.5 lakh and 500 respectively.
- Taxes: PPF has the tax status of Exempt-Exempt-Exempt (EEE), which implies that all contributions along with interest earned and all maturity proceeds are tax-exempt.
- Maturity & Withdrawal: The account is returning in 15 years, and one can withdraw or renew the account. The interest is charged monthly and charged on an annual basis.
- Maintenance of Accounts: Any account that fails to have a sum of ₹500 deposited in it within the span of one year becomes discontinued although it can be reactivated by paying a default charge of 50 on a year of inactivity.
- Nomination: The account holder can nominate someone as he or she dies, but no additional deposits can be made to it.
Month: Current Affairs - October 08, 2025
Category: BANKING, FINANCE & BUSINESS