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No Relief or Hike: Small Savings Scheme Rates Remain Same for 8th Straight Quarter
Small Savings Schemes: The government has not made any changes to the interest rates on small savings schemes like PPF, Sukanya Samriddhi Yojana, and NSC for the first quarter of the financial year 2026-27. How much return is available on each scheme and what are its tax benefits under Section 80C? Read our detailed report for complete information on safe investments.
The government has maintained the interest rates for small savings schemes for the first quarter of the 2026-27 financial year, which means the interest rates remain unchanged until June 30. This was notified by the Ministry of Finance in a notification. The interest rates for schemes such as the Public Provident Fund (PPF) and the National Savings Certificate (NSC) remain unchanged. This is the eighth consecutive quarter in which there have been no changes to the interest rates.
- PPF interest rate remains unchanged at 7.1%.
- Savings deposits in the post office remain unchanged at 4%.
- NSC interest rate for the period from April to June remains unchanged at 7.7%.
- Interest rate for the Sukanya Samriddhi scheme for girls’ education and marriage remains unchanged at 8.2%.
- The rate on three-year term deposits remains unchanged at 7.1%.
- The Kisan Vikas Patra (KVP) will offer 7.5% interest, with investments maturing in 115 months.
The Finance Ministry stated that these rates are the same as those notified for the fourth quarter of FY 2025-26 (March 31, 2026). The government last revised rates on select schemes in the fourth quarter of FY 2023-24. These schemes are considered safe for investors because they are sovereignly guaranteed by the government.
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The Public Provident Fund (PPF) interest rate has been retained at 7.1%. Post Office Savings Deposits will continue to offer 4% interest. The National Savings Certificate (NSC) interest rate will remain at 7.7%. The Sukanya Samriddhi Yojana (SSY) will continue to offer an interest rate of 8.2%. Three-year term deposits will earn 7.1%.
The Kisan Vikas Patra (KVP) is a government-backed small savings scheme that doubles money in 115 months. This scheme is available to all Indian residents through post offices or authorized banks. The minimum investment requirement is ₹1,000, with no maximum limit. Its lock-in period is two and a half years. The National Savings Certificate (NSC) is also an investment option offered through post offices. It requires a minimum investment of ₹1,000 and has a lock-in period of five years.
Small savings schemes are available at all post offices and major banks. These schemes offer higher interest rates than bank savings accounts. They are considered safe due to the government's sovereign guarantee. The National Savings Certificate (NSC) offers tax benefits of up to ₹1.5 lakh under Section 80C of the Income Tax Act. Other schemes, such as the Sukanya Samriddhi Yojana (SSY) and the Public Provident Fund (PPF), are also eligible for tax deductions under Section 80C. There is no upper limit on investment in these schemes.
