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Notably, the last revision in small savings rates was undertaken in the January–March quarter of FY2023–24.
Small Savings Scheme
The government has kept interest rates unchanged on various small savings schemes—including the Public Provident Fund and National Savings Certificate—for the eighth consecutive quarter starting April 1, 2026.
“The rates of interest on various Small Savings Schemes for the first quarter of FY2026–27 (April 1 to June 30, 2026) shall remain unchanged from those notified for the fourth quarter (January 1 to March 31, 2026) of FY2025–26,” the finance ministry said in a notification.
Notably, the last revision in small savings rates was undertaken in the January–March quarter of FY2023–24.
Interest rates: What investors will earn
The Centre has retained rates across schemes for the April–June quarter of FY2026–27.
Deposits under the Sukanya Samriddhi Yojana will continue to earn 8.2% interest. The account can be opened by a guardian for a girl child below 10 years of age, with a minimum deposit of Rs 250 and a maximum of Rs 1,50,000 per financial year. Investments qualify for deduction under Section 80C of the Income Tax Act.
Interest on a three-year term deposit remains at 7.1% for the current quarter.
The rate on the Public Provident Fund (PPF) has been retained at 7.1%, with a maximum investment limit of Rs 1.5 lakh annually. Contributions are eligible for tax benefits under Section 80C.
Post office savings deposits will continue to earn 4% interest. These accounts can be opened with a minimum deposit of Rs 500 and have no upper limit. Interest up to Rs 10,000 qualifies for deduction under Section 80TTA.
The interest rate on Kisan Vikas Patra remains at 7.5%, with maturity in 115 months and no maximum investment cap.
For the National Savings Certificate (NSC), the rate stays at 7.7% for the upcoming quarter. There is no maximum investment limit, and deposits qualify for tax deductions.
The monthly income scheme (MIS) will continue to offer 7.4% interest. The maximum investment limit is Rs 9 lakh for a single account and Rs 15 lakh for a joint account.
Why invest in small savings schemes?
Small savings instruments, backed by the Ministry of Finance, carry a sovereign guarantee, making them among the safest investment options.
They also offer relatively attractive returns compared to many market-linked instruments.
Additionally, funds mobilised through these schemes are invested in securities issued by state governments, effectively channelled as long-term loans by the Centre to support state-level development activities.
March 31, 2026, 08:34 IST
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