Small Savings Schemes: Did Interest Rates Increase for PPF and Sukanya Samriddhi? Big Announcement by Centre at Start of 2026
Small Savings Schemes: At the onset of the new year, millions of common people had their eyes on the interest rates of Post Office and other small savings schemes. The Central Government has announced the interest rates for Small Saving Schemes for the January-March 2026 quarter. This announcement is crucial for investors in popular schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana. According to the recent notification by the Finance Ministry, there has been no change in the interest rates for the first quarter of 2026.
Interest Rates Unchanged for Seventh Consecutive Time
The Union Finance Ministry has stated that the interest rates for small savings schemes for the January-March 2026 quarter will remain at the same levels as announced on September 30, 2025. This marks the seventh consecutive time the government has decided to keep these rates unchanged. The last change in interest rates occurred in the fourth quarter of the financial year 2023-24. Since then, the government has kept these rates stable to provide a steady income opportunity for investors.
New Interest Rates at a Glance (January – March 2026)
According to the Finance Ministry notification, the interest rates for various schemes are as follows:
| Scheme Name | Interest Rate |
|---|---|
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| Senior Citizen Savings Scheme (SCSS) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Kisan Vikas Patra (KVP) (Matures in 115 months) | 7.5% |
| Monthly Income Scheme (MIS) | 7.4% |
| Public Provident Fund (PPF) | 7.1% |
| 3-Year Term Deposit | 7.1% |
| Post Office Savings Deposit | 4.0% |
Government Bond Yields and Determination Method
The government uses the Shyamala Gopinath Committee’s formula to determine the interest rates for small savings schemes. Under this formula, the rates for these schemes are based on the yields of government bonds (G-Sec). In the past few months, a decline has been observed in the 10-year government bond yield. Typically, when bond yields fall, there is a possibility of interest rates decreasing, but the government has kept the rates stable considering the common people.
Relief for Investors
Amidst the current market uncertainty and inflation scenario, this decision by the government has brought significant relief to investors. This stability is particularly considered important for senior citizens, retired employees, and middle-class salaried individuals who rely on the safe and fixed returns of post office and small savings schemes. Since the interest rates have not been reduced, there will be no negative impact on their income.
