Are you planning to invest in Post Office small savings schemes in the new year? The government announced the latest interest rates on December 31
and gave relief to investors by keeping the rates unchanged. This comes at a time when many banks are cutting interest rates on fixed deposits.
According to a notification issued by the Ministry of Finance, interest rates on popular small savings schemes such as Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC),
and post office deposit schemes have not been reduced. These rates will apply for the fourth quarter of the financial year 2025–26, from January 1, 2026, to March 31, 2026.
The Department of Economic Affairs under the Ministry of Finance confirmed on December 31, 2025, that the interest rates for the January–March 2026 quarter will remain the same as those for the October–December 2025 quarter. This means there will be no increase or cut in interest rates at the start of the new year.
Interest Rates on Popular Small Savings Schemes
Here are the interest rates currently offered on major Post Office small savings schemes:
Sukanya Samriddhi Yojana (SSY): 8.2% per year
Three-year Post Office Time Deposit (FD): 7.1%
Public Provident Fund (PPF): 7.1%
Post Office Savings Account: 4%
Kisan Vikas Patra (KVP): 7.5% (maturity period of 115 months)
National Savings Certificate (NSC): 7.7%
Post Office Monthly Income Scheme (MIS): 7.4%
How the Government Decides Interest Rates
Interest rates on small savings schemes are reviewed every three months. While deciding these rates, the government looks at yields on government bonds (G-Secs) and other economic factors.
The recommendations of the Shyamala Gopinath Committee are also followed when fixing interest rates for post office schemes.
What Are Small Savings Schemes?
Small savings schemes are government-backed investment options designed to encourage safe savings, especially among low- and middle-income groups.
These schemes are offered through post offices and selected banks. Popular options include PPF, SSY, NSC, Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (MIS), time deposits, and recurring deposits.
