In December 2025, the Department of Economic Affairs (DEA-Budget Division) under the Ministry of Finance (MoF), kept the interest rates unchanged across all Small Savings Schemes (SSS) including Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) among others, for the 4th Quarter of financial Year 2025-26(Q4FY26) i.e. starting from January 01, 2026 to March 31, 2026, from those notified for Q3FY26.
- This marks the 8th consecutive quarter with no change in SSS interest rates, which were last revised by the DEA in Q4FY24.
Exam Hints:
- What? Interest rates on SSS kept unchanged for 8th consecutive quarter
- By Whom? DEA-Budget Division, MoF
- Period: Q4FY26(from January 01, 2026 to March 31, 2026)
- Methodology Recommended by: Shyamala Gopinath Committee (January 2023)
- First Review: 2016
- Examples of SSS: POSD; KVP;NSC, among others
- Highest Interest Rate Earned by: SSY and SCSS(8.2%)
Interest Rates on Small Savings Schemes for Q4FY26:
| Instruments | Rate of Interest from 1st January, 2026 to 31st March, 2026 |
|---|---|
| Post Office Savings Deposit (POSD) | 4.0% |
| 1-Year Post Office Time Deposits (POTD) | 6.9% |
| 2-Year Post Office Time Deposits (POTD) | 7.0% |
| 3-Year Post Office Time Deposits (POTD) | 7.1% |
| 5-Year Post Office Time Deposits (POTD) | 7.5% |
| 5-Year Post Office Recurring Deposits (PORD) | 6.7% |
| Kisan Vikas Patra (KVP) | 7.5% (will mature in 115 months) |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Senior Citizen Savings Scheme (SCSS) | 8.2% |
| Post Office Monthly Income Scheme (PO-MIS) | 7.4% |
| Mahila Samman Savings Certificate (MSSC) | 7.5% |
About Small Savings Schemes (SSS):
Overview: SSS are the Government of India(GoI)-backed savings instruments, aimed at promoting household savings and offering risk-free investment options.
Management: These schemes are mainly administered by DEA and administered through designated banks and over 1.5 lakh post offices, offering fixed returns with sovereign guarantees
Quarterly review: Since 2016, the interest rates for SSS have been notified by DEA on a quarterly basis, depending upon bond yields and market trends.
Methodology: The methodology to determine the interest rates for SSS was recommended by the Shyamala Gopinath Committee in January 2023.
- The committee suggested that interest rates for these schemes should be 25 to 100 basis points (bps) higher than the government bond yields.
About Ministry of Finance (MoF):
Union Minister- Nirmala Sitharaman (Rajya Sabha- Karnataka)
Minister of State (MoS)- Pankaj Chaudhary (Constituency- Maharajganj, Uttar Pradesh, UP)
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