North India Statesman
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For crores of middle class families investing in Small Savings Schemes 31 March 2026 The day is very important. The Government of India is going to announce tomorrow the new interest rates of popular schemes like PPF, NSC and Sukanya Samriddhi Yojana (SSY) for the first quarter (April-June 2026) of the financial year 2026-27. Investors’ eyes are fixed on whether the government will give the ‘gift’ of increasing interest rates in view of the ongoing turmoil and inflation in the international market or will they be kept stable.
At present this much interest is being received on these schemes.
The government did not make any change in interest rates during the quarter from January to March 2026. At present the returns available on various schemes are as follows:
| savings plan | Current Interest Rates (January-March 2026) |
|---|---|
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Kisan Vikas Patra (KVP) | 7.5% (maturity in 115 months) |
| Monthly Income Scheme (MIS) | 7.4% |
| Public Provident Fund (PPF) | 7.1% |
| Post Office Time Deposit (3 years) | 7.1% |
| post office savings account | 4.0% |
What is the mathematics behind determining interest rates?
The Government of India reviews these schemes every three months (quarters). This is mainly Government Bond Yields (G-Sec Yields) Is based on. As per the rule, the rates on small savings schemes should be 0.25% to 1% higher than the returns on government bonds. If interest rates remain high in the market, the government has scope to increase the rates of these schemes.
Will interest increase this time? expert opinion
Market experts believe that this time there seems to be little hope of an increase in rates. There are many big reasons behind this:
Global Uncertainty: The ongoing war in the Middle East (Iran-Israel crisis) has affected crude oil prices, putting pressure on the global economy.
Inflationary pressure: To control inflation at the domestic level, the Reserve Bank (RBI) has also kept its monetary policy strict.
Government deficit: Due to not much jump in bond yields, the government can maintain the rate of 7.1% on schemes like PPF.
Why are PPF and Sukanya Yojana special?
Investing in these schemes not only gives secure returns but also Section 80C of Income Tax Act The benefit of tax exemption is also available under this. Especially Sukanya Samriddhi Yojana is considered to be the best return giving scheme for the future of daughters, whereas PPF is the first choice of investors for long term (15 years) retirement fund.
The official notification to be released by the Finance Ministry by tomorrow evening will make it clear how much you will earn on your savings for the next three months.
