Small Savings Interest Rates for Q1 FY 2026-27 Remain Unchanged
The Ministry of Finance has clarified that interest rates on all Central Government Small Savings Schemes will remain steady for the first quarter of the financial year 2026–27. The Office Memorandum dated 30.03.2026, issued by the Department of Economic Affairs (Budget Division), confirms that the returns for the period from 1 April 2026 to 30 June 2026 will be identical to those already in force for 1 January 2026 to 31 March 2026.
This update is crucial for depositors, advisors, and assessees planning their savings and tax strategies around instruments such as the Public Provident Fund Scheme, National Savings Certificate, Kisan Vikas Patra, Senior Citizen Savings Scheme, and Sukanya Samriddhi Account Scheme.
Regulatory Background and Approval
The decision is communicated through Office Memorandum No. F.No.1/4/2019-NS, issued by the Government of India, Ministry of Finance, Department of Economic Affairs (Budget Division), Kartavya Bhawan – 1, New Delhi, dated 30.03.2026.
The subject line of the Memorandum, “Revision of interest rates for Small Savings Schemes – reg.”, indicates a periodic review. However, the conclusion of this review for Q1 FY 2026–27 is that no modifications are being made to the prevailing rates. The Memorandum expressly records that:
“The rates of interest on various Small Savings Schemes for the first quarter of FY 2026-27 starling from 1th April, 2026 and ending on 30th June. 2026 shall remain unchanged from those notified for the fourth quarter (1th January. 2026 to 31v March, 2026) of FY 2025-26.”
The Memorandum also clarifies that this position has obtained the approval of the competent authority, thereby giving legal and administrative finality to the rates for the relevant quarter.
Signatory Details
The communication is issued under the signature of:
(Masroor Ahmad)
Deputy Secretary (Budget)
Tele — 01124013082
This confirms that the decision is a formal and authoritative determination of small savings interest rates for the quarter in question.
Overview of Interest Rates: April–June 2026
The Office Memorandum includes a tabular comparison of interest rates applicable:
- From 01.04.2026 to 30.06.2026 (Q1 FY 2026–27); and
- From 01.01.2026 to 31.03.2026 (Q4 FY 2025–26).
The key takeaway is that every rate listed for Q4 FY 2025–26 has been carried forward without alteration into Q1 FY 2026–27.
Below is a structured explanation of the rates for each scheme for 01.04.2026 to 30.06.2026, as per the notified table.
Scheme-Wise Interest Rates for Q1 FY 2026–27
1. Savings Deposit
- Savings Deposit continues at an interest rate of 4.0 percent.
- This rate is unchanged from the period 01.01.2026 to 31.03.2026.
- Suitable for individuals and assessees who require liquidity along with a modest return, often used as a basic parking avenue for short-term funds.
2. Time Deposits (Post Office Term Deposits)
Time Deposits for different tenures retain their earlier interest levels. The rates for 01.04.2026 to 30.06.2026 are as under:
- 1 Year Time Deposit – 6.9 percent
- 2 Year Time Deposit – 7.0 percent
- 3 Year Time Deposit – 7.0 percent
- 5 Year Time Deposit – 7.5 percent
All these rates are exactly the same as those prescribed for 01.01.2026 to 31.03.2026, with no increment or reduction. These fixed tenure deposits remain an option for assessees seeking assured returns with clearly defined lock-in periods.
3. 5 Year Recurring Deposit
- The 5 Year Recurring Deposit scheme continues at 6.7 percent.
- The rate mirrors the figure applicable for the preceding quarter.
- This instrument is designed for disciplined monthly savings, allowing small contributions to accumulate over five years with a compounded return.
Note: In the original table, the rate is reflected as “.6.7” for the period from 01.04.2026 to 30.06.2026, which is clearly a typographical issue. The Memorandum makes it evident that the effective rate is 6.7 percent, consistent with the previous quarter.