India's government holds steady on small savings interest rates, including PPF and NSC, for the eighth consecutive quarter, offering stability for investors.
Key Points
- The Indian government has kept interest rates on small savings schemes, such as PPF and NSC, unchanged for the eighth straight quarter.
- Sukanya Samriddhi Scheme will continue to offer an interest rate of 8.2 per cent, while the three-year term deposit remains at 7.1 per cent.
- Interest rates for Public Provident Fund (PPF) and post office savings deposit schemes are maintained at 7.1 per cent and 4 per cent, respectively.
- Kisan Vikas Patra will offer a 7.5 per cent interest rate, maturing in 115 months, and the National Savings Certificate (NSC) will stay at 7.7 per cent.
- The monthly income scheme will continue to provide a 7.4 per cent return for investors in the upcoming quarter.
The government on Monday left interest rates unchanged for various small savings schemes, including PPF and NSC, for the eighth straight quarter, beginning April 1, 2026.
"The rates of interest on various Small Savings Schemes 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.
Interest Rates for Specific Schemes
As per the notification, deposits under the Sukanya Samriddhi Scheme will attract an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains at 7.1 per cent prevailing in the current quarter.
The interest rates for popular Public Provident Fund (PPF) and post office savings deposit schemes have been retained at 7.1 per cent and 4 per cent, respectively.
The interest rate on the Kisan Vikas Patra will be 7.5 per cent, and the investments will mature in 115 months.
The interest rate on the National Savings Certificate (NSC) will stay at 7.7 per cent for the April-June quarter.
Like the current quarter, the monthly income scheme will earn 7.4 per cent for investors during the first quarter of the next fiscal.
With this, the interest rates on small savings schemes, mainly operated by post offices and banks, have been left unchanged for the eighth consecutive quarter.
The government last changed the interest rate on some schemes in the fourth quarter of 2023-24.
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