There will be no change in the interest of small savings schemes.
Small Savings Scheme: Just before the beginning of the new year, a relief news has emerged for crores of middle class investors and common citizens of the country. The Finance Ministry has completely clarified the situation regarding the interest rates of Small Savings Schemes for the fourth quarter (January to March 2026) of the financial year 2025-26. According to the official office memorandum issued on 31 December 2025, the government has decided that there will be no change in the interest rates of popular schemes like PPF and NSC.
What does the government’s new order say?
In the notification issued by the Department of Economic Affairs (Budget Division) of the Finance Ministry, it has been clarified that the interest rates for the upcoming quarter will remain the same as were fixed for the third quarter (1 October 2025 to 31 December 2025). This simply means that from January 1, 2026 to March 31, 2026, investors will continue to get the same returns on their deposits.
How much interest will be given on which schemes?
After this decision of the government, the existing interest rates will remain intact. Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) will continue to offer the highest interest of 8.2%, which is good news for senior citizens and parents investing for the future of their daughters. At the same time, the interest rate on Public Provident Fund (PPF), the favorite of the common working class, will remain stable at 7.1%.
Apart from this, those investing in National Savings Certificate (NSC) will continue to get fixed returns of 7.7%. For those who receive monthly income through Post Office Monthly Income Scheme (POMIS), the interest rate will remain at 7.4%. Kisan Vikas Patra (KVP), in which the period for doubling of money is fixed, interest of 7.5% will be given on it. This is the second consecutive quarter that there has been no change in rates; Earlier, the rates were kept unchanged in the October-December 2025 quarter also.
Why was there talk of cut in the market?
In fact, market experts and many reports were speculating that the government may cut interest rates in view of inflation and the current market conditions. The Finance Ministry reviews these rates every quarter in consultation with the Reserve Bank of India (RBI).
Since fluctuations were being seen in the yields of government bonds and other economic parameters, there was a fear that the returns of schemes like PPF or NSC could go down. In such a situation, the rates remaining stable is no less than good news for investors, because this will keep the returns on their future deposits safe.