The Department of Economic Affairs (DEA), Ministry of Finance, announced on January 1, 2026, that interest rates on all small savings schemes will remain unchanged for the fourth quarter of financial year 2025-26 (January 1 to March 31, 2026). This marks the eighth consecutive quarter without any upward or downward revision in small savings rates — a period spanning two full financial years. Key schemes and their prevailing rates include: Public Provident Fund (PPF) at 7.1%, Sukanya Samriddhi Yojana (SSY) at 8.2%, Senior Citizens Savings Scheme (SCSS) at 8.2%, National Savings Certificate (NSC) at 7.7%, Kisan Vikas Patra at 7.5%, Monthly Income Account Scheme at 7.4%, and the 5-Year Recurring Deposit at 6.7%. The decision to hold rates steady is significant given the Reserve Bank of India's evolving monetary policy stance — with markets anticipating potential rate cuts in early 2026 — and reflects the government's balancing act between supporting small savers (who depend on these instruments for retirement and long-term financial security) and fiscal management. Small savings collections finance a significant portion of the government's fiscal deficit. These schemes are particularly important for women, senior citizens, and rural households in states like Rajasthan, where formal financial inclusion remains a policy priority. The unchanged rates provide certainty to investors planning medium-to-long-term savings in government-backed instruments.
Small Savings Scheme Interest Rates Kept Unchanged for Q4 FY2025-26 (January–March 2026): Eighth Consecutive Quarter Without Revision
The Department of Economic Affairs (DEA), Ministry of Finance, announced on January 1, 2026, that interest rates on all small savings schemes will remain unchanged for the fourth quarter of financial year 2025-26 (January 1 to March 31, 2026). This marks the eighth consecutive quarter without any upward or downward revision in small savings rates — a period spanning two full financial years. Key schemes and their prevailing rates include: Public Provident Fund (PPF) at 7.1%, Sukanya Samriddhi Yojana (SSY) at 8.2%, Senior Citizens Savings Scheme (SCSS) at 8.2%, National Savings Certificate (NSC) at 7.7%, Kisan Vikas Patra at 7.5%, Monthly Income Account Scheme at 7.4%, and the 5-Year Recurring Deposit at 6.7%. The decision to hold rates steady is significant given the Reserve Bank of India's evolving monetary policy stance — with markets anticipating potential rate cuts in early 2026 — and reflects the government's balancing act between supporting small savers (who depend on these instruments for retirement and long-term financial security) and fiscal management. Small savings collections finance a significant portion of the government's fiscal deficit. These schemes are particularly important for women, senior citizens, and rural households in states like Rajasthan, where formal financial inclusion remains a policy priority. The unchanged rates provide certainty to investors planning medium-to-long-term savings in government-backed instruments.
Key facts
- Small savings scheme interest rates remain unchanged for Q4 FY2025-26 (January-March 2026).
- This marks the eighth consecutive quarter without any rate revision.
- PPF rate stands at 7.1%, Sukanya Samriddhi Yojana at 8.2%, and SCSS at 8.2%.
- National Savings Certificate (NSC) rate is 7.7% and Kisan Vikas Patra at 7.5%.
- The Department of Economic Affairs (DEA) under the Finance Ministry made the announcement.
- The unchanged rates span two full financial years of stability in small savings instruments.
Mains angle
Q: Assess the fiscal and social rationale behind retaining small savings interest rates for the eighth consecutive quarter in Q4 FY 2025-26.
Answer (50 words):
The Department of Economic Affairs on January 1, 2026 kept small savings rates unchanged for Q4 FY 2025-26, the eighth consecutive quarter without revision. Prevailing rates include PPF 7.1%, Sukanya Samriddhi and Senior Citizens Savings 8.2%, NSC 7.7%, Kisan Vikas Patra 7.5%, balancing small-saver support against fiscal deficit financing.
Static prep for this topic
Read the permanent syllabus behind this story.
6-axis classification
Appears in these topics
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
What is the prevailing interest rate on the Public Provident Fund (PPF) for Q4 FY2025-26 as announced on January 1, 2026?
The article states that for Q4 FY2025-26, PPF rate continues at 7.1%, SCSS and SSY at 8.2%, NSC at 7.7%, KVP at 7.5%, MIS at 7.4%, and 5-year RD at 6.7%, marking the eighth consecutive quarter without revision.
Source: DEA Notification
Frequently asked questions
Which government body decides small savings scheme interest rates in India?
The Department of Economic Affairs (DEA) under the Ministry of Finance announces the interest rates for small savings schemes every quarter. The rates are reviewed and notified at the start of each quarter.
What is the current interest rate on the Public Provident Fund (PPF)?
The current interest rate on PPF is 7.1% per annum, unchanged for the fourth quarter of FY2025-26 (January–March 2026). This rate has remained steady for eight consecutive quarters.
How many consecutive quarters have small savings rates remained unchanged?
Small savings scheme interest rates have remained unchanged for eight consecutive quarters as of Q4 FY2025-26. This stability spans two full financial years without any upward or downward revision.
What are the interest rates for Sukanya Samriddhi Yojana and Senior Citizens Savings Scheme?
Both Sukanya Samriddhi Yojana (SSY) and the Senior Citizens Savings Scheme (SCSS) carry an interest rate of 8.2% per annum for Q4 FY2025-26. These are among the highest rates in the small savings basket.
What is the interest rate on NSC and Kisan Vikas Patra?
The National Savings Certificate (NSC) carries an interest rate of 7.7% while Kisan Vikas Patra (KVP) offers 7.5% for Q4 FY2025-26. Both rates remain unchanged from previous quarters.
Was this useful?
Share corrections or missing exam angles with the editorial team.
Send feedback