If you’re looking for safe, government-backed returns on your savings, small savings schemes are among the most reliable options in India. Managed by the Government of India and typically offered through post offices and select banks, these schemes provide fixed interest rates, guaranteed returns, and many also come with tax benefits. The latest interest rates for the January–March 2026 quarter have been maintained at stable levels, making them attractive for conservative investors. Business Today+1

Why Choose Small Savings Schemes?

Small savings schemes are ideal for investors who:

  • Prefer low-risk/guaranteed returns

  • Want government-backed safety

  • Seek tax benefits (in many schemes)

  • Are planning for goals like retirement or child education

Unlike market-linked products, small savings schemes offer predictable interest and assured maturity amounts.

Latest Interest Rates (January–March 2026)

Here’s a complete list of popular small savings schemes and their current interest rates:

Scheme Interest Rate (Annual)
Post Office Savings Account 4.00%
1-Year Term Deposit 6.90%
2-Year Term Deposit 7.00%
3-Year Term Deposit 7.10%
5-Year Term Deposit 7.50%
Recurring Deposit (5 yrs) 6.70%
National Savings Certificate (NSC) 7.70%
Monthly Income Scheme (MIS) 7.40%
Public Provident Fund (PPF) 7.10%
Senior Citizen Savings Scheme (SCSS) 8.20%
Sukanya Samriddhi Yojana (SSY) 8.20%
Kisan Vikas Patra (KVP) 7.50% (doubles in ~115 months)

Top Small Savings Schemes Explained

1. Public Provident Fund (PPF)

PPF is one of the most popular long-term savings options, offering a 7.10% interest rate with government backing. It has a 15-year maturity and provides tax benefits under Section 80C. Business Today

2. National Savings Certificate (NSC)

NSC offers a 7.70% return with a five-year lock-in period. Interest is compounded annually and paid at maturity. TaxGuru

3. Senior Citizens Savings Scheme (SCSS)

Designed for retirees, SCSS offers one of the highest safe returns at 8.20%, with a 5-year term and tax benefits under Section 80C. Business Today

4. Sukanya Samriddhi Yojana (SSY)

SSY supports long-term savings for a girl child, offering 8.20% interest and full tax benefits (EEE). The scheme matures when the girl turns 21 or marries after 18. BasuNivesh

5. Kisan Vikas Patra (KVP)

KVP doubles your investment in about 115 months with a 7.50% rate — a good option for conservative investors who want predictable pay-off. BasuNivesh

6. Post Office Monthly Income Scheme (MIS)

MIS provides monthly interest payouts at 7.40%, making it ideal for regular income seekers. BasuNivesh

Who Should Invest in Small Savings Schemes?

These schemes are great for:

  • Risk-averse investors

  • Retirees looking for steady income

  • Parents saving for child education or marriage

  • Anyone who wants guaranteed returns over a fixed term

Many schemes also help reduce taxable income under Section 80C of the Income Tax Act.

Benefits of Small Savings Schemes

✔ Government-backed safety — almost no risk
✔ Stable interest rates — reliable returns
✔ Tax advantages on several schemes
✔ Suitable for long-term goals like retirement and education

Conclusion

If you’re seeking safe and predictable returns, small savings schemes remain a dependable choice in 2026. With attractive interest rates — especially on SCSS and SSY — and the added benefit of government backing, these instruments help you grow your savings securely. Compare the rates, evaluate your goals, and choose the schemes that align with your financial plan.