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Govt Holds Small Savings Rates Steady for April-June Quarter

The government has announced that interest rates on all small savings schemes will remain unchanged for the first quarter of the 2026-27 financial year. Key schemes like the Public Provident Fund (7.1%), National Savings Certificate (7.7%), and Sukanya Samriddhi Scheme (8.2%) retain their current rates. This marks the eighth consecutive quarter without any revision to these rates. These government-backed schemes offer secure investment options with tax benefits under Section 80C of the Income Tax Act.

Key Points: Small Savings Rates Unchanged for April-June 2026 Quarter

  • PPF rate stays at 7.1%
  • Sukanya Samriddhi offers 8.2%
  • NSC interest remains 7.7%
  • Rates unchanged for 8th consecutive quarter
2 min read

Govt leaves interest rates on small savings schemes unchanged for April-June quarter

Government keeps interest rates on PPF, NSC, Sukanya Samriddhi, and other small savings schemes unchanged for Q1 FY 2026-27.

"The rates of interest... shall remain unchanged - Finance Ministry notification"

New Delhi, March 30

The government on Monday kept interest rates unchanged for various small savings schemes, including public provident fund and NSC, for the first quarter of the financial year 2026-27, starting April 1.

"The rates of interest on various Small Savings Schemes for the first quarter of FY 2026-27, starting from April 1, 2026, and ending on June 30, 2026, shall remain unchanged from those notified for the fourth quarter (January 1, 2026, to March 31, 2026) of FY 2025-26," a Finance Ministry notification said.

The interest rates for the Public Provident Fund (PPF) and post office savings deposits have been retained at 7.1 per cent and 4 per cent, respectively.

The National Savings Certificate (NSC) will continue to provide 7.7 per cent interest for the April-June quarter. The NSC is a secure investment option provided through post offices. A minimum investment of Rs 1,000 is required to open an NSC account, and the lock-in period is for 5 years. Tax benefits of up to Rs. 1.5 lakh is available under Section 80C of the Income Tax Act. There is no upper limit to investments under this scheme.

The deposits under the Sukanya Samriddhi Scheme, which covers savings for the girl child's education/marriage up to 21 years of age, will continue to earn 8.2 per cent interest, while the rate on a three-year term deposit remains at 7.1 per cent.

The Kisan Vikas Patra will offer 7.5 per cent interest, with investments maturing in 115 months. The Kisan Vikas Patra is a government-backed small savings scheme that doubles your money over 115 months. It is available to all Indian residents via post offices or authorised banks with a minimum investment of Rs 1,000, no maximum limit, and a lock-in period of 2.5 years.

The interest rates on small savings schemes now remain unchanged for the eighth quarter in a row as the government last revised rates on select schemes in the fourth quarter of 2023-24.

The small savings schemes are available at all post offices and major banks. They are considered safer as they have the sovereign guarantee from the government, and the interest rates they offer are higher than bank savings accounts. These schemes are also eligible for tax deductions under Section 80C.

- IANS

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Reader Comments

R
Rohit P
Stability is good! At least we know what to expect for our financial planning. The Sukanya Samriddhi rate of 8.2% is still very attractive for my daughter's future. Jai Hind! 🇮🇳
S
Sarah B
As an NRI, I always advise my family back home to use these schemes. The sovereign guarantee and tax benefits make them a core part of a safe investment portfolio. NSC at 7.7% is decent.
A
Aman W
Good for senior citizens who depend on monthly interest from post office deposits. No change means no surprise reduction in their income. But the 4% on savings deposit is too low, should be reviewed.
K
Karthik V
Eighth quarter in a row! While it provides predictability, it also feels like the govt is ignoring the fact that bank FD rates have moved up in many cases. Time for a re-look, please.
M
Meera T
The Kisan Vikas Patra doubling money in 115 months is a classic, trusted scheme for my parents in the village. They don't understand stock markets, but they understand this. No change is fine by them. 👍

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