New Year relief for investors: Govt keeps small savings interest rates unchanged

For the January–March 2026 quarter, the Centre has decided not to cut interest rates on popular small savings schemes, offering stability to middle-class investors and depositors.

The Central government has started 2026 with positive news for crores of middle-class investors and ordinary citizens, announcing that there will be no reduction in interest rates on small savings schemes for the fourth quarter of the 2025–26 financial year.

As per an official order issued on December 31, 2025, the government clarified that interest rates for the January to March 2026 quarter will remain unchanged. This decision applies to widely used savings instruments such as the Public Provident Fund (PPF) and National Savings Certificates (NSC), among others.

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According to a notification released by the Department of Economic Affairs (Budget Division) under the Ministry of Finance, the interest rates for the upcoming quarter will be the same as those fixed for the third quarter of the financial year, which covered the period from October 1 to December 31, 2025. This means investors will continue to earn the same returns on their deposits from January 1 to March 31, 2026.

With this decision, all existing rates remain intact. The Senior Citizens’ Savings Scheme (SCSS) and Sukanya Samriddhi Scheme (SSY) will continue to offer the highest interest rate of 8.2%, bringing relief to senior citizens and parents investing for their daughters’ future.
The popular Public Provident Fund (PPF), a preferred long-term option for salaried and working-class investors, will maintain its 7.1% interest rate. Meanwhile, investors in National Savings Certificates (NSC) will keep earning a stable return of 7.7%.

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For those dependent on regular income, the Post Office Monthly Income Scheme (POMIS) will continue to offer 7.4% interest. The Kisan Vikas Patra (KVP), known for its fixed maturity and capital doubling feature, will retain an interest rate of 7.5%.

Notably, this marks the second consecutive quarter in which small savings interest rates have been left unchanged, as rates were also maintained during the October–December 2025 quarter.