Small Savings Scheme: Big news for investors, the government has taken this decision on the interest rates of small savings schemes
The government has kept the interest rates on small savings schemes like PPF, NSC, and Sukanya Samriddhi unchanged for the January-March quarter, 2026. Market speculation had been rife about a rate cut, but the Finance Ministry has retained the old rates.
Small Savings Scheme: Just before the start of the new year, news of relief has come for crores of middle-class investors and common citizens of the country.
The Finance Ministry has completely clarified the situation regarding the interest rates of small savings schemes for the fourth quarter (January to March 2026) of the financial year 2025-26.
According to the official Office Memorandum issued on 31 December 2025, the government has decided that there will be no change in the interest rates of popular schemes like PPF and NSC.
What does the new government order say?
A notification issued by the Department of Economic Affairs (Budget Division) of the Ministry of Finance clarified that interest rates for the upcoming quarter will remain the same as those set for the third quarter (October 1, 2025, to December 31, 2025). This means that from January 1, 2026, to March 31, 2026, investors will continue to receive the same returns on their deposits.
How much interest will be available on which schemes?
Following this government decision, current interest rates will remain unchanged. The Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) will continue to offer the highest interest rate of 8.2%, which is good news for senior citizens and parents investing for their daughters' futures. Meanwhile, the interest rate on the Public Provident Fund (PPF), a favorite among the working class, will remain stable at 7.1%.
Additionally, investors in National Savings Certificates (NSCs) will continue to receive a fixed return of 7.7%. For those who receive monthly income through the Post Office Monthly Income Scheme (POMIS), the interest rate will remain at 7.4%.
Kisan Vikas Patra (KVP), which has a fixed doubling period, will offer an interest rate of 7.5%. This is the second consecutive quarter in which rates have remained unchanged; previously, rates were kept unchanged for the October-December 2025 quarter.
Why was there talk of a cut in the market?
In fact, market experts and several reports have been speculating that the government may cut interest rates in light of inflation and current market conditions. The Finance Ministry, in consultation with the Reserve Bank of India (RBI), reviews these rates every quarter.
As government bond yields and other economic indicators fluctuated, there was a fear that returns on schemes like the Public Provident Fund (PPF) or National Security Insurance Scheme (NSC). Therefore, stable rates are good news for investors, as they will secure future returns on their deposits.