Small Savings Scheme Interest Rate April–June 2026 | PPF, SSY, NSC, KVP Update

Small Savings Scheme Interest Rate April–June 2026 | PPF, SSY, NSC, KVP Update

Small Savings Scheme Interest Rate April–June 2026: The central government on Monday announced that interest rates on all small savings schemes — including the Public Provident Fund, Sukanya Samriddhi Yojana, National Savings Certificate, and Kisan Vikas Patra — will remain unchanged for the first quarter of FY 2026-27, running from April 1 to June 30, 2026.

This marks the eighth consecutive quarter in which the government has held these rates steady. The Finance Ministry issued a formal notification confirming that all rates applicable during the January–March 2026 quarter will carry over into the next.

8th Quarter UNCHANGED

8.2% HIGHEST RATE (SSY)

4.0% LOWEST RATE (PO SAVINGS)

2023–24 LAST RATE CHANGE

The Finance Ministry's notification lays out rates across all major instruments. Here is the full breakdown:

SCHEME	TENURE	COMPOUNDING	RATE (P.A.)
Sukanya Samriddhi Yojana For girl child, up to age 10	21 years	Annual	8.2%
National Savings Certificate (NSC) Section 80C eligible	5 years	Annual	7.7%
Kisan Vikas Patra (KVP) Matures in 115 months	115 months	Annual	7.5%
Monthly Income Scheme (MIS) Monthly payout	5 years	Monthly	7.4%
Public Provident Fund (PPF) 15-year lock-in, tax-free	15 years	Annual	7.1%
3-Year Term Deposit Post Office	3 years	Quarterly	7.1%
Post Office Savings Deposit Liquid savings account	On demand	Annual	4.0%

The last time the government revised any of these rates was during the fourth quarter of FY 2023-24. Since then, every quarterly review has ended with no change — a run of stability that is unusual by historical standards.

For investors in long-term instruments like PPF and SSY, rate stability is actually reassuring — it makes planning easier and protects returns already locked in.

Small savings scheme rates are pegged to the yield on government securities of corresponding maturities, with a small markup. As long as G-sec yields remain range-bound — which they have through most of the current rate cycle — there is limited pressure on the government to move these rates either way.

The Reserve Bank of India has been navigating a careful balance between growth support and inflation management. Any significant shift in the repo rate in the coming months could eventually feed into small savings rates, but for now the picture remains unchanged.

SUKANYA SAMRIDDHI YOJANA

At 8.2%, Sukanya Samriddhi continues to offer the highest return among all government-backed small savings instruments. The scheme is available for girl children up to the age of 10, with deposits eligible for deduction under Section 80C of the Income Tax Act. Interest earned is fully tax-free on maturity.

PUBLIC PROVIDENT FUND

PPF remains at 7.1% per annum, compounded annually. The 15-year lock-in, combined with tax-free returns and Section 80C benefits, makes it one of the most popular instruments for long-term wealth building. Partial withdrawals are permitted from the seventh year onward.

KISAN VIKAS PATRA

KVP will double an investor's money in 115 months — roughly 9 years and 7 months — at the current 7.5% rate. There is no upper limit on investment, though amounts above ₹50,000 require PAN card details. KVP certificates can also be used as collateral for loans.

NATIONAL SAVINGS CERTIFICATE

NSC offers 7.7% per annum with a five-year tenure. Interest is compounded annually but paid out only at maturity, and it qualifies for Section 80C deduction each year as it is deemed to be reinvested. Certificates can be purchased at any post office or through the India Post Payments Bank app.

MONTHLY INCOME SCHEME

At 7.4%, the MIS pays interest directly into the account holder's savings account every month, making it a practical option for retirees or anyone seeking a regular passive income. The individual investment limit stands at ₹9 lakh for a single account and ₹15 lakh for a joint account.

PPF is currently earning 7.1% per annum, and that rate will stay put through June 2026. It has now been unchanged for eight consecutive quarters, since the Q4 FY 2023-24 revision. A rate increase would depend on a sustained rise in government bond yields, which has not materialised so far. Investors already holding PPF accounts earn the prevailing rate, which the government can change each quarter.

At the current 7.5% rate, a KVP investment doubles in exactly 115 months. So ₹1 lakh invested today will become ₹2 lakh in just over 9 years and 7 months. If rates change in a future quarter, the maturity period will be revised for new certificates purchased after that date, but existing certificates retain the terms at the time of purchase.

Yes, NSC interest is taxable as income from other sources. However, because the interest is not paid out annually — it is automatically reinvested — it is treated as a fresh deposit each year and qualifies for deduction under Section 80C, up to the ₹1.5 lakh annual limit. Only the final year's interest is taxable at maturity, since the earlier years have already been claimed as deductions.

The Finance Ministry reviews small savings rates every quarter. The next announcement, covering July–September 2026, will typically be made in late June or early July 2026. The government is not obligated to change rates at every review — as the current eight-quarter streak shows — but investors should check the official Finance Ministry notification before making fresh investments.

Sukanya Samriddhi Yojana tops the list at 8.2%, but it is only available for girl children under 10. Among universally accessible schemes, NSC at 7.7% offers the highest rate for a fixed-tenure instrument, followed by Kisan Vikas Patra at 7.5% and MIS at 7.4%. PPF, while offering slightly lower returns at 7.1%, remains attractive because its maturity proceeds are entirely tax-free.