Small Savings Scheme Interest Rate in 2026: Are you planning to invest in the Post Office’s small savings scheme in the new year? Learn about the interest rates on small savings schemes, as the government announced the interest rates yesterday, December 31st.
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Small Saving Scheme Interest Rate in 2026: Are you planning to invest in the Post Office’s small savings scheme in the new year? Find out the interest rates on small savings schemes, as the government announced the interest rates yesterday, December 31st. The government has provided relief to investors in small savings schemes by not reducing the interest rates. While most banks are reducing interest rates on fixed deposits, this bank has not made any changes to the interest rates.
According to a notification issued by the Finance Ministry, there has been no change in the interest rates on PPF, Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and post office deposit schemes. These rates will be applicable for the fourth quarter of the financial year 2025–26, i.e., from January 1, 2026, to March 31, 2026.
The Department of Economic Affairs, Ministry of Finance, announced on December 31, 2025, that interest rates for the January-March 2026 quarter will remain the same as those for the October-December 2025 quarter. This means that investors will not face any interest rate cuts or increases at the start of the new year.
How much interest will you earn on these schemes?
- Sukanya Samriddhi Yojana (SSY): 8.2% per annum
- Three-year Post Office Time Deposit (FD): 7.1%
- Public Provident Fund (PPF): 7.1%
- Post Office Savings Account: 4%
- Kisan Vikas Patra (KVP): 7.5% (matures in 115 months)
- National Savings Certificate (NSC): 7.7%
- Post Office Monthly Income Scheme (MIS): 7.4%
How does the government determine interest rates?
The interest rates on small savings schemes are reviewed quarterly. The government considers market yields on government bonds (G-Secs) and other economic indicators when setting these rates. The recommendations of the Shyamala Gopinath Committee are also followed in determining the rates of post office schemes.
What are small savings schemes?
Small savings schemes are government-backed investment options aimed at encouraging the general public, especially those in the low and middle income groups, to save safely. These schemes are available through post offices and some banks. These include schemes like PPF, SSY, NSC, Senior Citizen Savings Scheme (SCSS), Post Office MIS, Time Deposit and Recurring Deposit.
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