New Delhi: For millions of middle-class savers and senior citizens who rely on government schemes for safe returns, the wait is over. The Union Finance Ministry has officially announced the interest rates for Small Savings Schemes for the fourth quarter of FY 2025-26 (January 1 to March 31, 2026).
In a relief to investors, the government has decided to keep the interest rates unchanged for this quarter, despite falling bond yields in the market. This means you will continue to earn high returns on schemes like Sukanya Samriddhi and Senior Citizen Savings Scheme (SCSS).
Small Savings Interest Rates (Jan 1 – Mar 31, 2026)
According to the notification issued by the Department of Economic Affairs, here are the applicable rates starting today:
| Scheme Name | Interest Rate (Annual) | Compounding Frequency |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Annually |
| Senior Citizen Savings Scheme (SCSS) | 8.2% | Quarterly |
| Public Provident Fund (PPF) | 7.1% | Annually |
| National Savings Certificate (NSC) | 7.7% | Annually |
| Kisan Vikas Patra (KVP) | 7.5% | Annually (Matures in 115 months) |
| Post Office Monthly Income (MIS) | 7.4% | Monthly |
| 5-Year Recurring Deposit (RD) | 6.7% | Quarterly |
| Savings Deposit | 4.0% | Annually |
Why This is Good News?
Financial experts were predicting a rate cut this quarter because the 10-year Government Bond yield (which these rates are linked to) has fallen below 7%. By maintaining the status quo, the government has ensured that:
- Parents: Continue to get the highest tax-free return (8.2%) for their daughter’s education under SSY.
- Retirees: Senior citizens enjoy a safe 8.2% return, which is significantly higher than most Bank FDs (currently averaging 7.0-7.5%).
Important Rule for PPF Investors
If you invest in PPF, ensure you deposit your monthly installment before January 5th.
- The Rule: Interest for the month is calculated on the lowest balance between the 5th and the last day of the month.
- The Benefit: Depositing by Jan 5 earns you interest for the entire month of January.
Where to Open These Accounts?
You can open these accounts at any Head Post Office or authorized branches of public sector banks (SBI, PNB, J&K Bank, etc.). For full details, visit the official India Post Financial Services page.
FAQs
No, the PPF rate remains steady at 7.1%. It has not been changed since April 2020.
Currently, the Sukanya Samriddhi Yojana and Senior Citizen Savings Scheme offer the highest return of 8.2%.
PPF & SSY: Yes, the interest earned is completely tax-free (EEE category).
SCSS & FD: No, interest is taxable as per your income slab.
Disclaimer
Rates are based on the Finance Ministry Notification dated December 31, 2025. These rates are valid until the next review on March 31, 2026.
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