The government on Wednesday kept interest rates unchanged for various small savings schemes, including the Public Provident Fund and National Savings Certificate, extending the status quo for the seventh consecutive quarter starting January 1, 2026.
The decision means that millions of small savers will continue to earn the same returns on their deposits during the January to March quarter of FY 2025-26, despite changing interest rate dynamics in the broader financial system. Small savings schemes are widely used by households as low risk investment options and are primarily operated through post offices and select banks.
In an official notification, the finance ministry confirmed that rates for the fourth quarter of FY 2025-26 will remain the same as those applicable in the previous quarter.
Rates unchanged for January to March quarter
“The rates of interest on various Small Savings Schemes for the fourth quarter of FY 2025-26, starting from January 1, 2026, and ending on March 31, 2026, shall remain unchanged from those notified for the third quarter (September 1, 2025 to December 31, 2025) of FY 2025-26,” the finance ministry said.
According to the notification, deposits under the Sukanya Samriddhi Scheme will continue to earn interest at 8.2 per cent. The three-year term deposit rate has also been retained at 7.1 per cent, unchanged from the current quarter.
Popular savings instruments such as the Public Provident Fund will continue to offer 7.1 per cent interest, while post office savings deposit accounts will earn 4 per cent during the January-March period.
Seventh straight quarter of status quo on rates
The interest rate on the Kisan Vikas Patra has been kept at 7.5 per cent, with investments maturing in 115 months. The National Savings Certificate will continue to offer an interest rate of 7.7 per cent in the fourth quarter of the fiscal.
Similarly, the monthly income scheme will provide a return of 7.4 per cent, the same as in the ongoing quarter.
With the latest announcement, interest rates on small savings schemes, which are primarily operated through post offices and banks, have now remained unchanged for seven consecutive quarters. The last revision in rates was carried out during the fourth quarter of FY 2023-24. The government reviews and notifies interest rates on these schemes every quarter.
