No New Year hike for savers. The Finance Ministry has maintained the status quo on Small Savings Schemes for the January-March 2026 quarter. Check the confirmed interest rate table here.
The wait is over for millions of middle-class investors. The Union Ministry of Finance has officially announced the interest rates for Small Savings Schemes for the 4th Quarter of Financial Year 2025-26 (January 1 to March 31, 2026).
Contrary to market expectations of a pre-budget hike, the government has decided to keep the interest rates unchanged. This marks the third consecutive quarter where rates for popular schemes like the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) have remained steady.
Confirmed Interest Rates (Jan 1 – Mar 31, 2026)
The Department of Economic Affairs has notified the following rates, effective immediately:
| Scheme Name | Interest Rate | Compounding Freq. |
| 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 Were Rates Not Hiked?
According to banking experts, the decision aligns with the benchmark 10-year G-Sec (Government Security) yields, which have stabilized in the 6.9%–7.0% range over the last three months. Since the formula for small savings rates is linked to G-Sec yields, there was little fiscal room for a hike despite high inflation concerns.
What Investors Should Do
- For Tax Saving: With the financial year ending in March, PPF remains the best E-E-E (Exempt-Exempt-Exempt) tax-saving instrument despite the static 7.1% rate.
- For Senior Citizens: The SCSS at 8.2% continues to offer better returns than most bank Fixed Deposits (FDs), which are currently hovering around 7.5%–7.8% for the same tenure.
FAQs: Small Savings Schemes (Jan-Mar 2026)
A: The government links small savings rates to the 10-year G-Sec (Government Security) yields. Since bond yields have stabilized around 6.9-7.0%, the Finance Ministry saw no fiscal room to hike the PPF rate, which is already tax-free (EEE category).
A: No. The interest rate is floating and is revised by the government every quarter. However, once credited, the interest for that specific quarter is locked in.
A: The Senior Citizen Savings Scheme (SCSS) currently offers the highest return at 8.2% p.a., paid out quarterly. This is generally higher than most bank Fixed Deposit rates for the same tenure.
A: No, these rates apply to both new and existing accounts for the period between January 1, 2026, and March 31, 2026.
Disclaimer: The interest rates mentioned above are based on the official notification from the Department of Economic Affairs, Ministry of Finance (dated Dec 31, 2025). Rates are subject to change every quarter. Readers are advised to verify details with their nearest Post Office or Bank branch before investing.
