The government today kept interest rates unchanged for various small savings schemes, including the public provident fund (PPF) and national savings certificate (NSC), for the eighth straight quarter, beginning 1 April 2026.
“The rates of interest on various 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.
Notably, the government had last changed the on some small schemes, mainly operated by post offices and banks, in the fourth quarter of 2023-24 (i.e. January to March 2024).
Here’s how much interest you get
The Centre has kept the interest rates unchanged for the upcoming quarter of the financial year 2026-27.
- As per the notification, deposits under the Scheme will attract an interest rate of 8.2%. The account may be opened by one of the guardians in the name of a girl child till she attains the age of 10 years with minimum deposit of ₹250 and maximum ₹1,50,000- in a financial year. It qualifies for deduction under Section 80C of Income-Tax Act.
- The rate on a three-year term deposit under the also remains at 7.1% in the current quarter.
- Further, interest rates for the popular Public Provident Fund () have been retained at 7.1%. The maximum which one can invest is ₹1.5 lakh and the deposit is eligible for deduction under Section 80C of the I-T Act.
- While that for the savings deposit schemes is unchanged at 4%. The account may be opened with minimum of ₹500 and has no maximum deposit limit. Interest up to ₹10,000 qualifies for deduction under Section 80TTA of the I-T Act.
- The interest rate on the Kisan Vikas Patra will be 7.5%, and the investments will mature in 115 months. There is no maximum limit for deposits.
- The interest rate on the National Savings Certificate () will stay at 7.7% for investors during the first quarter of the next fiscal. There is no maximum limit, and the deposits qualify for I-T deduction.
- For the April-June quarter, the monthly income scheme (MIS) will earn 7.4%. The maximum deposit limit is ₹9 lakh for a single account and ₹15 lakh for a joint account.
Why should you invest in small savings schemes?
These tools are products of Ministry of Finance and have sovereign guarantee making them fully secured and safe.
The rate of interest offered are attractive compared to other schemes in the .
Another factor to consider is that 100% of the collections made is invested in the securities floated by the state government as a loan by the Centre on long term basis which is used by the states for their developmental activities.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.