 "PPF, NSC, SCSS and more: Small savings rates for January-March 2026")
The government has kept interest rates on popular small savings schemes unchanged for the January–March quarter of FY26.
The rates were notified on December 31, 2025. These schemes, backed by a sovereign guarantee, continue to be a key savings option for conservative investors seeking stable and predictable returns.
Small savings schemes are revised every quarter, largely in line with government bond yields. However, for this quarter, savers will continue to earn the same returns across products such as the Public Provident Fund, National Savings Certificate and Senior Citizen Savings Scheme.
Public Provident Fund remains a long-term favourite
The Public Provident Fund (PPF) continues to offer an interest rate of 7.1 per cent for the January–March quarter. PPF has a 15-year maturity, with partial withdrawals allowed after a few years. Its biggest advantage is tax efficiency, both the investment (up to Rs 1.5 lakh a year) and the returns are tax-free under the exempt-exempt-exempt framework.
National Savings Certificate and monthly income option
The National Savings Certificate (NSC) carries an interest rate of 7.7 per cent. It has a five-year tenure and does not attract tax deducted at source on interest. The investment qualifies for deduction under Section 80C, although the interest is taxable on maturity.
For investors looking for regular income, the Post Office Monthly Income Scheme (POMIS) offers 7.4 per cent interest, paid monthly. The maximum investment limit is Rs 9 lakh for a single account and Rs 15 lakh for a joint account. The interest, however, is fully taxable and there are no tax deductions on investment.
Higher returns for senior citizens and girl child savings
The Senior Citizen Savings Scheme (SCSS) remains one of the highest-yielding government schemes, offering 8.2 per cent interest. It is available to individuals aged 60 years and above, with a five-year tenure and an investment cap of Rs 30 lakh. Deposits qualify for Section 80C benefits, though interest income is taxable.
The Sukanya Samriddhi Yojana (SSY) also offers 8.2 per cent, making it attractive for long-term savings for a girl child. Annual investments between Rs 250 and Rs1.5 lakh qualify for tax deduction, and both interest and maturity proceeds are tax-free.
Other post office schemes
The Kisan Vikas Patra (KVP) offers 7.5 per cent, with the investment doubling over a fixed period. There is no tax benefit, and interest is taxable.
Post Office Time Deposits offer returns between 6.9 per cent and 7.5 per cent, depending on tenure. Only the five-year deposit qualifies for tax deduction. The Post Office Recurring Deposit continues to offer 6.7 per cent, with no tax benefits.
For risk-averse investors, these unchanged rates provide stability at a time of uncertainty in market-linked returns.