Small Savings Schemes: The central government has decided not to change the interest rates on small savings schemes for the fourth quarter of the financial year 2025-26. According to an order issued by the Ministry of Finance, the same interest rates will apply to all small savings schemes from January 1, 2026, to March 31, 2026, as were in effect between October 1, 2025, and December 31, 2025.
Read More- Happy New Year 2026 – PM Modi greeted the nation on New Year, wrote this post
📌 Also Read: LIC Best Policy: Guaranteed Pension of Rs 1 Lakh for Life With One Investment, Apply Like This
This decision comes at a time when there was widespread speculation in the market that the government might reduce the interest rates on some schemes. A major reason for this speculation was the fact that the Reserve Bank of India (RBI) had reduced the repo rate by a total of 1.25 percent in 2025, which had a clear impact on bank fixed deposits and other interest-bearing investment options.
Why did the rates remain unchanged despite the repo rate cut
📌 Also Read: Pm Kisan Yojana - Farmers will receive a Rs 2,000 installment on this date! Check the update
While it is generally believed that a reduction in the repo rate leads to lower interest rates on all investment instruments, this is not necessarily the case with small savings schemes. The interest rates on these schemes are not directly linked to the RBI’s repo rate. When determining these rates, the government primarily considers the yield on 10-year government securities (G-Secs) and the country’s economic condition.
This is why the government has kept the rates on these schemes stable despite the repo rate cut. This clearly indicates that the government wants to protect the interests of small investors and shield these schemes from sharp market fluctuations.
📌 Also Read: PAN Card: Is It Mandatory to Link Aadhaar Again After Getting PAN 2.0 Card? Know Rules
These Small Savings Schemes will be affected by the decision
This government decision will affect all major small savings schemes run under the Post Office. These include popular schemes such as the Public Provident Fund, Sukanya Samriddhi Yojana, National Savings Certificate, Kisan Vikas Patra, Senior Citizen Savings Scheme, and Post Office Time Deposits.
📌 Also Read: Budget 2026 - Farmers’ installment amount will be 9,000 rupees! Government will announce
Investors in all these schemes will receive the same interest rate in the fourth quarter as they received during the third quarter. This means that the government has kept these rates unchanged for the second consecutive quarter.
Why is this decision important for investors?
📌 Also Read: Petrol-Diesel Price Today - Petrol‑diesel rates released on the first day of the New Year, know update
This decision to maintain stable interest rates is considered crucial for investors who prefer low-risk investments and seek safe and predictable returns. Senior citizens, retired employees, and small investors, in particular, invest a significant portion of their savings in these schemes.
Amidst inflation and global economic uncertainties, the stability of interest rates on these schemes provides investors with both mental and financial relief. This also makes their future financial planning more reliable.
📌 Also Read: UP NEWS: Vehicles will now zoom along! NH-24's 6-lane expansion will transform travel
Indication of Government Policy
📌 Also Read: LIC’s Most Powerful Schemes: Strong Returns with Guaranteed Financial Security
Maintaining the rates for the fourth quarter reflects the government’s policy of shielding small savings schemes from excessive market volatility. The government’s objective is clear: to ensure the safety of small investors’ savings and protect them from sudden fluctuations in interest rates.