Small savings schemes 2026: Government keeps interest rates unchanged for January–March quarter
Among post office savings schemes, the highest returns are currently offered by the Senior Citizen Savings Scheme (SCSS) and the Sukanya Samriddhi Account (SSA), both carrying an interest rate of 8.2%. Public Provident Fund (PPF) will continue to offer an interest rate of 7.1%.
- Dec 31, 2025,
- Updated Dec 31, 2025 8:04 PM IST
The Ministry of Finance has decided to keep interest rates on small savings schemes unchanged for the January–March 2026 quarter. The rates will continue at the levels announced on September 30, 2025, covering popular instruments, such as Post Office Time Deposits, 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 the Sukanya Samriddhi Yojana (SSY) Account.
Among post office savings options, the highest returns are currently offered by the Senior Citizen Savings Scheme (SCSS) and the Sukanya Samriddhi Account (SSA), both carrying an interest rate of 8.2%. In comparison, the widely used Public Provident Fund (PPF) continues to offer an interest rate of 7.1%.
For long-term, tax-saving investors, the National Savings Certificate (NSC) offers a guaranteed return of 7.7% with annual compounding, while the Public Provident Fund (PPF) continues at 7.1%, remaining popular due to its EEE tax status and sovereign guarantee. Kisan Vikas Patra, with a rate of 7.5% and a maturity period of 115 months, suits investors seeking capital protection with predictable growth.
Post Office Time Deposits provide returns ranging from 6.9% to 7.5% depending on tenure, with quarterly compounding, making them comparable to bank fixed deposits. Meanwhile, the Monthly Income Account at 7.4% caters to those looking for steady monthly payouts, particularly senior citizens and conservative investors. Overall, the unchanged rates offer stability and clarity for savers planning their investments in early 2026.
Current rates for the Jan-March quarter ((01.01.2026–31.03.2026):
Instrument Interest rate Compounding Frequency
Post Office Savings Account 4.0% Annually
1 Year Time Deposit 6.9% (Annual Interest Rs 708 for Rs 10,000) Quarterly
2 Year Time Deposit 7.0% (Annual Interest Rs 719 for Rs 10,000) Quarterly
3 Year Time Deposit 7.1% (Annual Interest Rs 719 for Rs 10,000) Quarterly
5 Year Time Deposit 7.5% (Annual Interest Rs 771 for Rs 10,000) Quarterly
5 Year Recurring Deposit Scheme 6.7% Quarterly
Senior Citizen Savings Scheme 8.2% (Quarterly Interest Rs 205 for Rs 10,000) Quarterly and Paid
Monthly Income Account 7.4% (Monthly Interest Rs 62 for Rs 10,000) Monthly and Paid
National Savings Certificate 7.7% (Maturity Value Rs 14,490 for Rs 10,000) Annually
Public Provident Fund Scheme 7.1% Annually
Kisan Vikas Patra 7.5% (Matures in 115 months) Annually
Sukanya Samriddhi Account Scheme 8.2%
The Ministry of Finance has decided to keep interest rates on small savings schemes unchanged for the January–March 2026 quarter. The rates will continue at the levels announced on September 30, 2025, covering popular instruments, such as Post Office Time Deposits, 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 the Sukanya Samriddhi Yojana (SSY) Account.
Among post office savings options, the highest returns are currently offered by the Senior Citizen Savings Scheme (SCSS) and the Sukanya Samriddhi Account (SSA), both carrying an interest rate of 8.2%. In comparison, the widely used Public Provident Fund (PPF) continues to offer an interest rate of 7.1%.
For long-term, tax-saving investors, the National Savings Certificate (NSC) offers a guaranteed return of 7.7% with annual compounding, while the Public Provident Fund (PPF) continues at 7.1%, remaining popular due to its EEE tax status and sovereign guarantee. Kisan Vikas Patra, with a rate of 7.5% and a maturity period of 115 months, suits investors seeking capital protection with predictable growth.
Post Office Time Deposits provide returns ranging from 6.9% to 7.5% depending on tenure, with quarterly compounding, making them comparable to bank fixed deposits. Meanwhile, the Monthly Income Account at 7.4% caters to those looking for steady monthly payouts, particularly senior citizens and conservative investors. Overall, the unchanged rates offer stability and clarity for savers planning their investments in early 2026.
Current rates for the Jan-March quarter ((01.01.2026–31.03.2026):
Instrument Interest rate Compounding Frequency
Post Office Savings Account 4.0% Annually
1 Year Time Deposit 6.9% (Annual Interest Rs 708 for Rs 10,000) Quarterly
2 Year Time Deposit 7.0% (Annual Interest Rs 719 for Rs 10,000) Quarterly
3 Year Time Deposit 7.1% (Annual Interest Rs 719 for Rs 10,000) Quarterly
5 Year Time Deposit 7.5% (Annual Interest Rs 771 for Rs 10,000) Quarterly
5 Year Recurring Deposit Scheme 6.7% Quarterly
Senior Citizen Savings Scheme 8.2% (Quarterly Interest Rs 205 for Rs 10,000) Quarterly and Paid
Monthly Income Account 7.4% (Monthly Interest Rs 62 for Rs 10,000) Monthly and Paid
National Savings Certificate 7.7% (Maturity Value Rs 14,490 for Rs 10,000) Annually
Public Provident Fund Scheme 7.1% Annually
Kisan Vikas Patra 7.5% (Matures in 115 months) Annually
Sukanya Samriddhi Account Scheme 8.2%