Small Savings Schemes: PPF, NSC, SCSS, SSY and post office FD interest rates compared — which one is right for you?

Small savings schemes are popular among conservative investors in India because they are products of the Ministry of Finance and carry a sovereign guarantee, making them fully secure. The interest rates offered are also attractive compared to many other schemes in the financial market.

The central government has decided to keep interest rates for small savings schemes unchanged for the first quarter of the 2026-27 fiscal year. This marks the eighth consecutive quarter in which rates for popular instruments such as the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and National Savings Certificate (NSC) have remained static.

These schemes, which are reviewed every quarter by the government, continue to attract conservative investors seeking stable returns.

The stable list includes Recurring Deposits (RD), Sukanya Samriddhi Yojana(SSY), and Kisan Vikas Patra (KVP).

The latest decision follows a previous notification on 31 December 2025, which also maintained existing rates for the January-March 2026 period.

"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," according to the Finance Ministry notification released in March.

For the April-June 2026 quarter, Sukanya Samriddhi Yojana continues to lead with an 8.2% yield, while the PPF remains at 7.1%. The NSC offers 7.7%, and the KVP provides 7.5% with a 115-month maturity timeline. Additionally, the Monthly Income Scheme yields 7.4%, the three-year Post Office Time Deposit stands at 7.1%, and the basic Post Office Savings Account stays at 4%.

Short-term and long-term fixed deposits also show consistency. A 1-year deposit yields 6.9%, while 2-year and 3-year options offer 7.0% and 7.1%, respectively. The 5-year fixed deposit, preferred by long-term planners, provides 7.5%, while the 5-year recurring deposit remains at 6.7%.

List of small savings schemes and interest rates:

• Sukanya Samriddhi Yojana (SSY) — 8.2%
• Public Provident Fund (PPF) — 7.1%
• National Savings Certificate (NSC) — 7.7%
• Kisan Vikas Patra (KVP) —7.5%
• Senior Citizen Savings Scheme (SCSS) —8.2%
• Monthly Income Scheme (MIS) — 7.4%
• Post Office Savings Account — 4.0%
• 1-year Fixed Deposit —6.9%
• 2-year Fixed Deposit —7.0%
• 3-year Fixed Deposit —7.1%
• 5-year Fixed Deposit —7.5%
• 5-year Recurring Deposit (RD) — 6.7%

The last major adjustment occurred in the January-March quarter of FY 2023-24. During April 2024, the government implemented minor hikes for only the three-year time deposit and SSY. Since that period, the broader interest rate environment for these retail products has been held steady.

How the interest rates are fixed?

The Finance Ministry determines these figures using a formula linked to market yields, specifically tracking the movement of government securities with comparable maturities, such as five-year G-Sec yields for equivalent savings deposits.

How to open small savings schemes account?

To open a small savings account like PPF, SSY, or NSC, residents can visit any local post office or authorized bank. Applicants must complete the required forms and provide KYC identification, including Aadhaar and PAN. Existing patrons may utilize the India Post internet banking portal for online registration, while new investors can conveniently set up their accounts through the official India Post mobile application.