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.
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Small Savings Scheme: Just before the start of the new year, millions of middle-class investors and ordinary citizens across the country have received some welcome news. The Ministry of Finance has clarified the interest rates on small savings schemes for the fourth quarter of the financial year 2025-26 (January to March 2026). According to an official Office Memorandum issued on December 31, 2025, the government has decided that there will be no change in the interest rates on popular schemes like the Public Provident Fund (PPF) and National Security Accounts (NSC).
What does the government’s new order say?
A notification issued by the Department of Economic Affairs (Budget Division) of the Ministry of Finance clarifies 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 simply means that from January 1, 2026 to March 31, 2026, investors will continue to get the old returns on their deposited capital.
How much interest will be paid 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’ future. Meanwhile, the interest rate on the Public Provident Fund (PPF), a favorite among the working class, will remain stable at 7.1%.
Furthermore, investors in the National Savings Certificate (NSC) will continue to receive a fixed return of 7.7%. Those who receive monthly income through the Post Office Monthly Income Scheme (POMIS) will continue to earn 7.4%. Kisan Vikas Patra (KVP), which has a fixed doubling period, will offer 7.5% interest. 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 rate cut in the market?
Market experts and several reports had been speculating that the government might cut interest rates in light of inflation and current market conditions. The Finance Ministry reviews these rates quarterly in consultation with the Reserve Bank of India (RBI).
As government bond yields and other economic parameters were fluctuating, there was a fear that returns on schemes like the Public Provident Fund (PPF) or National Security Guarantee Scheme (NSC) might decline. Therefore, the stable rates are good news for investors, as this will ensure future returns on their deposits.
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