Rates on small savings instruments have been held steady for an eighth straight quarter. The rates are effective for Q1FY27.
"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," the Finance Ministry said in a notification on March 31.
The highest interest rate of 8.2% is offered for the Sukanya Samriddhi Yojana (SSY) and the Senior Citizen Savings Scheme (SCSS).
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Here is a look at the key aspects of these schemes.
Sukanya Samriddhi Yojana
A popular choice among parents, the Sukanya Samriddhi Yojana allows accounts to be opened for girls below the age of 10 through post offices and select banks. At present, the scheme delivers 8.2% interest per annum, compounded annually, placing it above the returns on many bank fixed deposits.
At 8.2% per annum, the scheme requires a minimum deposit of Rs 250, while total contributions cannot exceed Rs 1.5 lakh in a financial year. Additional investments can be made in multiples of Rs 50, with no ceiling on the frequency of deposits, whether monthly or annually.
Key features and eligibility criteria include:
Only resident Indian citizens are eligible to participate in the scheme.
Parents or legal guardians may open an account for a girl child who is under 10 years old at the time of enrolment.
A maximum of two accounts is permitted per family, corresponding to two daughters.
Exceptions are made for twin or triplet births, allowing more than two accounts upon furnishing valid proof and an affidavit. However, this provision is not applicable where the first childbirth results in more than one surviving girl child.
The guardian will oversee the account until the beneficiary reaches the age of 18.
Thereafter, the account holder assumes control, subject to the submission of necessary documents.
Each girl child is entitled to only one account under the scheme.
Senior Citizen Savings Scheme
Targeted at senior citizens, the SCSS remains a popular savings avenue for retirees seeking dependable returns. The scheme's interest rate has been held at 8.2% since April 1, 2023.
The scheme offers an annual interest rate of 8.2%, with investors allowed to make a single deposit in multiples of Rs 1,000, subject to a maximum limit of Rs 30 lakh.
Key features and eligibility criteria are:
The scheme is available only to resident individuals in India.
Persons aged 60 years and above are eligible to participate.
Individuals between 55 and 60 years who have retired may also qualify, provided they open the account within three months of receiving retirement benefits and submit the necessary documentation.
Retired members of the defence services, excluding civilian personnel, can open accounts upon reaching 50 years of age, subject to conditions.
The spouse of a government employee who dies in service after the age of 50 is also eligible to open an account.
Accounts may be opened individually or jointly with a spouse, although the investment is considered to belong to the primary account holder.
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