Latest Small Savings Interest Rates: The Finance Ministry announces the interest rates for post office and small savings schemes every quarter after a review. The interest rates for Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizens Savings Scheme (SCSS), National Savings Certificates (NSC) etc are decided on a quarterly basis.The Finance Ministry has released the latest interest rates for the first quarter of the new financial year FY 2026-27 from April to June. The interest rates for all small savings schemes have been kept unchanged.
Latest Small Savings Interest Rates (Q1 FY 2026-27)
The existing rates will continue to apply for the April–June 2026 quarter. In an official notification, the ministry said that the interest rates for various small savings schemes for the first quarter of FY 2026–27, beginning April 1, 2026 and ending June 30, 2026, will remain the same as those announced for the preceding quarter of FY 2025–26.According to the notification, the Sukanya Samriddhi Scheme will continue to offer an interest rate of 8.2%, while the rate on three-year term deposits remains unchanged at 7.1%.
Experts say that interest rates on small savings schemes are often influenced by several key factors. Among these, yields on government securities are the most critical, as higher bond yields generally lead to higher returns on these schemes. Inflation also plays a role, as the government aims to maintain attractive real returns for investors. Additionally, monetary policy actions by RBI, particularly changes in the repo rate and liquidity conditions, impact G-Sec yields and, in turn, small savings rates.However, despite the market-linked framework, experts are of the view the government does not strictly adhere to the formula every quarter. Protecting small savers, particularly senior citizens and retirees who rely on these schemes for stable income, is a key factor behind maintaining steady rates.Interest rates on these schemes have remained unchanged for an extended period. The last revision was made for the January–March quarter of FY 2023–24.
