Small Saving Schemes: Government makes a big announcement on the interest rates of small savings schemes, know the new rates

Small Saving Schemes: The central government has left the interest rates on small savings schemes like PPF, NSC, and Sukanya Samriddhi for the January-March quarter of 2026. This is the seventh consecutive quarter without any change in interest rates.

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Small Saving Schemes: The Union Government’s Finance Ministry has not made any changes to the interest rates of small savings schemes for the January-March 2026 quarter. The new interest rates will remain at the levels announced on September 30, 2025. According to a notification issued by the Finance Ministry, there has been no change in the interest rates of popular small savings schemes like Public Provident Fund (PPF) and National Savings Certificate (NSC) for the upcoming January-March 2026 quarter.

For the seventh consecutive quarter, interest rates on small savings schemes have remained unchanged. The government has kept these rates stable. It’s worth noting that the last interest rate change was in the fourth quarter of the financial year 2023-24.

Know the new interest rates

Public Provident Fund (PPF) will earn 7.1% interest. The rate on National Savings Certificate (NSC) has been fixed at 7.7%. Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) – both will earn 8.2% return. All these rates are same as the rates of the quarter April-June 2025. 7.1% interest will be given on 3-year term deposit, 4% on Post Office Savings Deposit Schemes, 7.5% on Kisan Vikas Patra (matures in 115 months), 7.7% on National Savings Certificate (NSC), 7.4% on Monthly Income Scheme and 8.2% on Senior Citizen Savings Scheme.

Government bond yields fall

The government uses the Shyamala Gopinath Committee’s formula to determine interest rates for small savings schemes. Under this formula, the rates for these schemes are based on government bond (G-Sec) yields. The 10-year government bond yield has seen a decline in the past few months.

The importance of the decision for investors

This government decision comes at a time of market uncertainty regarding inflation and interest rates. The unchanged interest rates have brought relief to investors who prefer to invest in instruments with safe and fixed returns, particularly senior citizens, retired employees, and small investors who rely on post office and small savings schemes. Therefore, this stability is considered important for them.

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