The government has decided to keep interest rates unchanged for various small savings schemes, such as the Public Provident Fund (PPF) and National Savings Certificate (NSC), for the first quarter of the financial year 2026-27, starting from April 1. According to a notification from the Finance Ministry, the rates for these schemes will remain the same as the previous quarter, from January 1, 2026, to March 31, 2026.
Interest rates for the PPF and post office savings deposits will stay at 7.1% and 4%, respectively. The NSC will continue to offer 7.7% interest for the April–June quarter. NSC accounts require a minimum investment of Rs 1,000, have a lock-in period of 5 years, and offer tax benefits under Section 80C of the Income Tax Act.
Under the Sukanya Samriddhi Scheme, designed for the girl child’s education/marriage savings up to 21 years of age, the interest rate remains at 8.2%. Additionally, the Kisan Vikas Patra will provide 7.5% interest, with investments maturing in 115 months. These small savings schemes, offered through post offices and banks, are known for their safety due to government backing and higher interest rates compared to bank savings accounts.
The government’s decision to maintain the interest rates for small savings schemes marks the eighth consecutive quarter without any revisions. These schemes are popular due to their sovereign guarantee, attractive interest rates, and eligibility for tax deductions under Section 80C.
