Small Savings Scheme Interest Rates for Q1 FY27: The government on Monday announced a status quo on small savings scheme interest rates for the first quarter of the new financial year, which begins on April 1. These small schemes are:
- Post Office Savings Account
- Time Deposit (four maturities)
- Recurring Deposit
- Senior Citizen Savings Scheme
- Monthly Income Scheme
- National Savings Certificate
- Public Provident Fund
- Kisan Vikas Patra
- Mahila Samman Savings Certificate
- Sukanya Samriddhi Account
With the interest rates unchanged at existing levels, these government-backed fixed income schemes will continue to yield the same returns as the final quarter of the current financial year.
The latest notification means that the same interest rates will be carried forward to the period from April 1 to June 30.
Currently, the government reviews these interest rates every quarter, implementing any revisions at the onset of a new quarter.
Latest small savings scheme interest rates (April-June 2026) list
| Scheme | Interest rate for July-Sept 2025 | Compounding frequency |
| Post Office savings account (SA) | 4% | Annually |
| Post Office 1-year Time Deposit (TD) | 6.9% (Rs 708 annual interest on Rs 10,000 deposit) | Quarterly |
| Post Office 2-year Time Deposit | 7.0% (Rs 719 annual interest on Rs 10,000 deposit) | Quarterly |
| Post Office 3-year Time Deposit | 7.1% (Rs 729 annual interest on Rs 10,000 deposit) | Quarterly |
| 5-year Time Deposit | 7.5% (Rs 771 annual interest on Rs 10,000 deposit) | Quarterly |
| Post Office 5-year Recurring Deposit (RD) Scheme | 6.7% | Quarterly |
| Post Office Senior Citizen Savings Scheme (SCSS) | 8.2% (Rs 205 quarterly interest on Rs 10,000 deposit) | Quarterly and Paid |
| Post Office Monthly Income Account (MIA) | 7.4% (Rs 62 monthly interest on Rs 10,000 deposit) | Monthly and paid |
| Post Office National Savings Certificate (NSC)-VIII Issue | 7.7% (Rs 14,490 maturity value on Rs 10,000 deposit) | Annually |
| Post Office Public Provident Fund (PPF) Scheme | 7.1% | Annually |
| Kisan Vikas Patra (KVP) | 7.5% (matures in 115 months) | Annually |
| Mahila Samman Savings Certificate | 7.5% (Rs 11,602 maturity value on Rs 10,000 deposit) | Quarterly |
| Sukanya Samriddhi Account (SSA) Scheme | 8.2% | Annually |
Which small savings schemes pay the highest interest rate?
Out of these schemes, the Senior Citizen Savings Scheme — a special scheme for senior citizen depositors — and the Sukanya Samriddhi Scheme — another special scheme focused on the girl child — pay the highest interest rate of 8.2 per cent per annum.
Here are answers to frequently asked questions (FAQs) about small savings schemes:
What are small savings schemes?
They are government-backed deposit instruments especially designed to encourage household savings with assured returns.
How many small savings schemes are there?
There are broadly 10 types of small savings schemes, like PPF, NSC, KVP and Sukanya Samriddhi.
These schemes are aimed at promoting financial savings among citizens and support financial inclusion. They also enable the government to mobilise domestic funds for development.
Who administers these schemes?
They are administered by the Ministry of Finance, with implementation largely through the Department of Posts and National Savings Institute.
Where can customers open accounts?
People can open small savings accounts at designated post offices and authorised banks.
Why are these schemes important now?
In times of uncertainty, they offer guaranteed savings options, supporting financial security.
Who are they best suited for?
Most financial planners find these schemes ideal for risk-averse investors, households, senior citizens and long-term savers.
What is the maturity period of these schemes?
It varies from scheme to scheme. For instance, the SCSS plan comes with a maturity period of five years but the Sukanya Samriddhi scheme comes with a maturity period of 21 years.
