Have PPF, NSC, SCSS interest rates changed for January-March 2026? Check latest rates of small savings scheme announced today

The Finance Ministry didn’t change the interest rates of Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS) and National Savings Certificates (NSC), Sukanya Samriddhi Account (SSY) at its quarterly review meeting today (December 31, 2025). The new interest rates of these small savings schemes, popularly known as post office schemes, will be applicable for the January-March quarter of the Financial Year 2025-26 (FY 25-26).

The last time the government made any changes in the interest rates of small savings schemes was in April 2024.

The Ministry of Communications said in its release dated December 31, 2025: "The undersigned is directed to intimate that. vide memorandum No. 1/4/2019-NS dated 31.12.2025 (copy enclosed), Government of India, Ministry of Finance, Department of Economic Affairs (Budget Division) has informed that the rates of interest on various Small Savings Schemes (National Savings Schemes) for the fourth quarter of financial year 2025-26 (starting from 1st January, 2026 and ending on 31st March, 2026) shall remain unchanged from those notified for the third quarter (1st October, 2025 to 31st December, 2025) of FY 2025-26."


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As per the notification of the ministry, interest rates for PPF will be 7.1%, while SCSS and SSY will keep attracting an interest rate of 8.2 per cent each.



The interest rate in Post Office Savings Deposit will be 4%, while the rate for time deposit schemes will be in the range of 6.7% to 7.5%.

Post Office Scheme interest rates between January 1, 2026, and March 31, 2026

Instrument	Interest rate from January 1, 2026 to March 2026 (%)
Savings Deposit	4
1 Year Time Deposit	6.9
2 Year Time Deposit	7
3 Year Time Deposit	7.1
5 Year Time Deposit	7.5
5 Year Recurring Deposit	6.7
Senior Citizen Savings Scheme	8.2
Monthly Income Account Scheme	7.4
National Savings Certificate	7.7
Public Provident Fund Scheme	7.1
Kisan Vikas Patra	7.5 (Matures in 115 months)
Sukanya Samriddhi Account	8.2

Source: India Post website: December 31, 2025


Among other popular small savings scheme, NSC will have an interest rate of 7.7% for the January-December quarter, while the rate for the Kisan Vikas Patra will be 7.5 per cent.

Monthly income scheme, which generates monthly income for depositors, will keep earning an interest rate of 7.4 per cent for the January-December quarter.

Also Read: Why RBI floating rate bond with 8.05% interest is still one of the best investment options for most investors?

With the Ministry retaining the interest rates of all small savings schemes, the rates have been left unchanged for the seventh quarter in a row. The Ministry last made changes in the rates of some schemes for the fourth quarter of FY 2023-24.

The government didn’t slash of the interest rates of small savings schemes even though indicators such as 10-year Government Securities (G-Sec) bond yield and low inflation indicating a rate cut.

Chartered accountant Foram Naik Sheth, KMP, Wealth Management Solutions, NPV Associates LLP, says the ministry left the rates unchanged despite lower G-Sec yields and subdued inflation to ensure everyday savers continue to enjoy strong and reliable returns.

"These schemes are a key part of many households' financial plans and stable rates build lasting trust in government backed options. By focusing on saver confidence over strict formula tweaks, the decision supports long-term security for families and senior citizens amid economic shifts," says Sheth.

Why did the Finance Ministry not cut the interest rates of small savings schemes for January-December quarter?

The 10-year G-Sec bond yield and low inflation were indicators that the government may for a rate cut, but like many instances in the past, the Ministry didn’t change it for some reasons. For crores of people in India, specially in small cities, towns and villages, many people and households still primarily invest in small savings schemes. The other alternatives that they have for small savings schemes are fixed deposits.

But after frequent repo rate cuts in the year 2025 (125 bps total), many banks have already reduced FD rates. In such a situation, had the government reduced the rate of small savings schemes, the earnings of many savers’ and households’ would have been impacted.

Many pensioners, retirees and senior citizens also invest in small savings schemes to get a fixed income. Any decrease in the interest rate would have also affected their earnings.

The government has avoided such a situation in the past and followed the same path this time around also.

Chakrivardhan Kuppala, co-founder and director, Prime Wealth Finserv, feels The decision to hold rates is best understood as risk management, not policy inertia.

"While G-Sec yields have softened, the government is aware that small savings are not just financing tools - they are confidence instruments. A cut at this juncture would have disproportionately affected retirees and long-term savers who rely on these schemes as income substitutes, not yield plays," says Kuppala.

Kuppala also feels that with the Union Budget weeks away, the Ministry may prefer to avoid unsettling household expectations before presenting a broader fiscal narrative.

"Absorbing a marginally higher interest cost in the short term is seen as preferable to triggering a negative perception around “returns being taken away” from savers," says Kuppala.

How government decides small savings schemes’ interest rates

The Finance Ministry determines small savings scheme interest rates according to the methodology proposed by the Shyamala Gopinath Committee.

As per the committee's recommendations, the interest rates for various small savings schemes should be set within a range of 25 to 100 basis points (1 basis point = 0.01%) above the 10-year G-Sec bond yield. The recommendations were proposed to ensure that small savings schemes interest rates remain competitive and appealing to investors.

For calculation, the average of previous quarter G-Sec bond yield is taken into account.

For example: the 3-month G-Sec yield (From September 30, 2025 to December 30, 2025) is 6.541%, as per data available on Investing.com. If we add 25 basis points to it, the rate becomes 6.791%. This rate is 0.309% lower than the PPF rate of 7.1%. To match 6.791% rate, the government can reduce the PPF rate if it wants.

Low inflation is another factor that can encourage the government to reduce the rate.

November 2025 CPI inflation stands at 0.71% year-on-year, rising from October’s record low of 0.25%. Despite a rise in retail inflation, it is still very low which supports the case for a rate cut.

But the government overlooked both conditions to retain the rates of small savings schemes.

There have been many instances when the government has deviated from the Shyamala Gopinath committee's formula to calculate the interest rates of small savings schemes. This is because the government is under no obligation to accept the interest rate derived using the formula.

When were interest rates for PPF, NSC, SCSS and other post office small savings schemes changed before today's cut?

Before today's decision, the Finance Ministry last changed the interest rates of post office small savings schemes in the last quarter of the Financial Year (FY) 2023-24, i.e., the January-March 2024 quarter. In April 2024, the ministry hiked the interest rates of 3-year time deposits and Sukanya Samriddhi Yojana (SSY).

The 3-year time deposit interest rate increased from 7% to 7.1%, while the Sukanya Samriddhi Yojana (SSY) interest rate was raised from 8% to 8.2%.

There was no change in the interest rates for the rest of the small savings schemes. After that, there was no change in the interest rates for more than a year.