The government has given a big gift on the New Year, announcing interest rates on small savings schemes including PPF and SSY..
Small Savings Schemes New Interest Rate: A day before the new year, the government has announced its decision regarding the interest rates on various small savings schemes for the last quarter of the financial year 2025-26.
The interest rates on various small savings schemes for the fourth quarter of the financial year 2025-26 (January 1, 2026, to March 31, 2026) will remain the same as the rates announced for the third quarter of the financial year 2025-26 (October 1, 2025, to December 31, 2025). The government last revised the interest rates on small savings schemes in April 2024.
What will be the interest rate for the January-March quarter?
This means that there is no change in the rates for schemes such as Post Office Time Deposit, Post Office Monthly Income Scheme, Post Office Savings Account, Post Office Recurring Deposit, Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVP), and Sukanya Samriddhi Yojana (SSY) accounts for the January-March quarter of the financial year 2025-26.
According to the Ministry of Finance notification, the interest rate for PPF will be 7.1%, while SCSS and SSY will continue to offer an interest rate of 8.2% percent.
The interest rate on Post Office Savings Deposits will be 4%, while the rate for Time Deposit schemes will range from 6.7% to 7.5%.
Among other popular small savings schemes, NSC will have an interest rate of 7.7% for the January-December quarter, while Kisan Vikas Patra will offer a rate of 7.5%.
The Monthly Income Scheme, which provides depositors with monthly income, will continue to offer an interest rate of 7.4 percent for the January-December quarter. Serial Number | Scheme Name | January-March Interest Rates | October-December Interest Rates | July-September Interest Rates
1 | National Savings Recurring Deposit Account | 6.70% | 6.70% | 6.70%
2 | Public Provident Fund Account (PPF) | 7.10% | 7.10% | 7.10%
3 | National Savings Certificate (NSC) | 7.70% | 7.70% | 7.70%
4 | Sukanya Samriddhi Yojana | 8.20% | 8.20% | 8.20%
5 | Kisan Vikas Patra Account | 7.50% | 7.50% | 7.50%
6 | 1-Year Fixed Deposit | 6.90% | 6.90% | 6.90%
7 | 2-Year Fixed Deposit | 7% | 7% | 7%
8 | 3-Year Fixed Deposit | 7.10% | 7.10% | 7.10%
9 | 5-Year Fixed Deposit | 7.50% | 7.50% | 7.50%
10 | 5-Year Recurring Deposit | 6.70% | 6.70% | 6.70%
11 | Senior Citizen Savings Scheme (SCSS) | 8.20% | 8.20% | 8.20%
12 | Monthly Income Scheme | 7.40% | 7.40% | 7.40%
The Ministry of Finance fixes the interest rates for small savings schemes according to the methodology suggested by the Shyamala Gopinath Committee.
According to the committee's recommendations, the interest rates for different small savings schemes should be fixed in a range of 25 to 100 basis points (1 basis point = 0.01%) above the 10-year G-Sec bond yield.
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