NEW YORK, December 31, 2025, 14:17 ET
- India’s finance ministry kept post office small-savings interest rates unchanged for the Jan. 1–Mar. 31, 2026 quarter
- PPF stays at 7.1%, while SCSS and Sukanya Samriddhi remain at 8.2%
- The decision extends a run of no changes as households lean on government-backed returns
India’s finance ministry kept interest rates unchanged on a range of post office small-savings schemes for the January–March 2026 quarter, a decision that preserves returns on some of the country’s most widely held household savings products. Public Provident Fund (PPF) stays at 7.1%, while the Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Account remain at 8.2%, the ministry said. 1
The rates matter because they set the floor for low-risk household returns just as the new quarter begins on Jan. 1, and many savers make or adjust contributions around year-end.
They also serve as a benchmark for competing products, from bank fixed deposits to other guaranteed-return instruments, especially for retirees and conservative investors.
The ministry’s decision keeps the broader small-savings menu steady for the seventh straight quarter, according to media reports citing the notification. 2
Small-savings schemes are government-backed deposit products sold largely through post offices. The list includes PPF, SCSS, the National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and time deposits of varying maturities.
PPF is a long-term savings plan, while SCSS is designed for older depositors seeking periodic interest income. Sukanya Samriddhi is a targeted savings scheme aimed at building funds over time for a girl child.
New rates typically take effect at the start of each quarter after a finance ministry review. Investors watch the announcement closely because changes flow directly into the returns they earn, with limited credit risk.
“Small savings rates are benchmarked to the average G-sec yields of comparable maturity,” said Siddharth Jain, vice president for valuations at SPA Capital Advisors, referring to government securities that underpin the rate-setting framework. 3
A government panel has recommended that administered small-savings rates track government bond yields of similar maturities, with a small additional spread, though the finance ministry makes the final call.
For SCSS, the ministry retained the 8.2% rate for the January–March 2026 quarter, keeping one of the highest returns in the small-savings lineup unchanged. Upstox also noted the SCSS rate has been held at 8.2% since April 2023. 4
That stability is likely to be welcomed by senior citizens who depend on predictable interest payments, especially at a time when many lenders periodically reset deposit pricing.
