MoF Keeps Interest Rates on Small Savings Schemes Unchanged for Q4FY26

Current Context: The Ministry of Finance (MoF) announced on December 31, 2025 that interest rates will remain unchanged for Q4 FY26 (January–March 2026).

• This marks the seventh consecutive quarter of no change, ensuring stability for household savers.
• The Sukanya Samriddhi Account (SSA) and Senior Citizen Savings Scheme (SCSS) continue to offer the highest return at 8.2%.
• Other key schemes include National Savings Certificate (NSC) at 7.7%, Public Provident Fund (PPF) at 7.1%, and Kisan Vikas Patra (KVP) at 7.5%.
• The Monthly Income Scheme remains at 7.4%, while the Recurring Deposit (5-year) stays at 6.7%.
• Time deposits are unchanged: 1-year at 6.9%, 2-year at 7.0%, 3-year at 7.1%, and 5-year at 7.5%.
• The basic savings deposit rate continues at 4%, reflecting the government’s aim to balance inflation management with household savings support.

Question:

Q.1 What is the interest rate for the Public Provident Fund (PPF) in Q4 FY26?
a) 7.7%
b) 7.5%
c) 7.1%
d) 8.2%

Answer: c) PPF, a popular long-term tax-saving instrument under Section 80C, remains at 7.1%.