Government Maintains Interest Rates for Small Savings Schemes in Q1 2026-27

Synopsis

In a recent announcement, the Indian government has decided to keep the interest rates for various small savings schemes stable for the upcoming financial quarter. This decision affects popular options like the PPF and NSC, providing assurance to savers as they plan their investments.

Key Takeaways

Interest rates for small savings schemes remain unchanged for Q1 FY 2026-27.

PPF interest rate: 7.1 percent.

NSC interest rate: 7.7 percent.

Sukanya Samriddhi Scheme: 8.2 percent for girl child's education.

Kisan Vikas Patra: 7.5 percent, doubles money in 115 months.

New Delhi, March 30 (NationPress) The government has decided to maintain the interest rates for various small savings schemes, such as the Public Provident Fund (PPF) and National Savings Certificate (NSC), for the initial quarter of the financial year 2026-27, effective from April 1.

A notification from the Finance Ministry stated, "The interest rates for various Small Savings Schemes will remain the same for the first quarter of FY 2026-27, commencing April 1, 2026, and concluding on June 30, 2026, as those announced for the fourth quarter (January 1, 2026, to March 31, 2026) of FY 2025-26."

The interest rates for the Public Provident Fund (PPF) and the post office savings deposits have been confirmed at 7.1 percent and 4 percent, respectively.

The National Savings Certificate (NSC) will continue to offer 7.7 percent interest during the April–June quarter. This investment option is available through post offices and requires a minimum investment of Rs 1,000 to open an NSC account, with a 5-year lock-in period. Tax benefits up to Rs 1.5 lakh can be claimed under Section 80C of the Income Tax Act, with no upper limit on investments.

For the Sukanya Samriddhi Scheme, aimed at saving for a girl child's education or marriage until the age of 21, the interest rate remains at 8.2 percent. The three-year term deposit continues at 7.1 percent.

The Kisan Vikas Patra will yield 7.5 percent interest, with investments maturing in 115 months. This government-backed scheme doubles the investment over 115 months and is accessible to all Indian residents through post offices or authorized banks, with a minimum investment of Rs 1,000, no maximum limit, and a 2.5-year lock-in period.

The interest rates for small savings schemes have remained stable for the eighth consecutive quarter, as the government last revised rates for certain schemes in the fourth quarter of 2023-24.

These small savings schemes are available at all post offices and major banks, regarded as safe due to the government’s sovereign guarantee. The interest rates offered are typically higher than those of regular bank savings accounts, and they are also eligible for tax deductions under Section 80C.

Point of View

The government's decision to keep interest rates stable for small savings schemes reflects a commitment to providing reliable options for citizens. This continuity can bolster confidence among investors looking for safe and tax-efficient savings avenues.

NationPress

27 Jul 2026

Frequently Asked Questions

What are the current interest rates for PPF?

The interest rate for the Public Provident Fund (PPF) is currently maintained at 7.1 percent.

How long is the lock-in period for NSC?

The National Savings Certificate (NSC) has a lock-in period of 5 years.

Can I claim tax benefits on small savings schemes?

Yes, you can claim tax benefits up to Rs 1.5 lakh under Section 80C of the Income Tax Act on eligible small savings schemes.

What is the minimum investment required for Kisan Vikas Patra?

The minimum investment required for Kisan Vikas Patra is Rs 1,000.

Are small savings schemes safe?