By Central 8th Pay Commission Admin
Fixed Income Stability: Ministry of Finance Keeps Small Savings Rates Unchanged for Q4 FY 2025-26
Published: Dec 31, 2025 | 22:15 IST
The rates for the upcoming quarter will remain exactly as they were for the previous quarter (October–December 2025), ensuring that investors in popular schemes like PPF, Sukanya Samriddhi, and NSC continue to earn steady, guaranteed returns.
Running Interest Rates: Jan 1, 2026, to Mar 31, 2026
The Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) continue to lead the pack, offering the highest returns in the small savings basket at 8.2%. Meanwhile, the popular Public Provident Fund (PPF) has been retained at 7.1%, remaining a top choice for long-term tax-efficient savings.
| Small Savings Scheme | Interest Rate (Jan-Mar 2026) | Compounding / Payout |
|---|---|---|
| Sukanya Samriddhi Account (SSY) | 8.2% | Annual |
| Senior Citizen Savings Scheme (SCSS) | 8.2% | Quarterly Payout |
| National Savings Certificate (NSC) | 7.7% | Annual Compounding |
| Kisan Vikas Patra (KVP) | 7.5% | Matures in 115 months |
| Monthly Income Account (MIS) | 7.4% | Monthly Payout |
| Public Provident Fund (PPF) | 7.1% | Annual Compounding |
| 5-Year Time Deposit | 7.5% | Quarterly |
| Savings Deposit | 4.0% | Annual |
The Stability Factor: Why Rates Weren’t Cut
Although market-linked frameworks and current G-Sec yields suggested potential for reduction, the government has prioritized stability for household savers. This is especially significant given that retail inflation has been low and bank fixed deposit rates have seen a general decline following recent RBI repo rate cuts in 2025. For conservative investors, these Post Office schemes continue to offer a premium over traditional bank FDs.