The government has reviewed interest rates on small savings schemes for the April-June 2026 quarter, extending a long spell of stability for post office and other government-backed savings products.
In its notification for the first quarter of FY 2026-27, the Finance Ministry said, "The rates of interest on various Small Savings Schemes for the first quarter of FY 2026-27, starting from April 1, 2026, and ending on June 30, 2026, shall remain unchanged from those notified for the fourth quarter (January 1, 2026 to March 31, 2026) of FY 2025-26."
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The returns will therefore stay exactly same.
— The Public Provident Fund (PPF) will continue to fetch 7.1 per cent.
— Post office savings deposits will earn 4 per cent interest.
— Sukanya Samriddhi Scheme interest will remain at 8.2 per cent.
— Interest on three-year term deposit will remain at 7.1 per cent.
— The National Savings Certificate will earn interest of 7.7 per cent.
— Interest on the Monthly Income Scheme will remain at 7.4 per cent and the Kisan Vikas Patra at 7.5 per cent, with maturity in 115 months.
Small savings schemes are widely used by households looking for safe and predictable returns. They are popular among conservative investors, especially those who prefer sovereign-backed instruments over market-linked products.
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The latest move also continues the pattern seen over the past several quarters, when the government resisted making frequent changes to the small savings basket.
For investors, that means familiar returns and no fresh surprise for the new quarter. For the government, it keeps borrowing costs and retail savings rates aligned with the existing policy framework.
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