Small Savings at 8.2%: Is Your FD Beating This?

The government has kept small savings scheme interest rates unchanged for April–June 2026. Schemes like SCSS and Sukanya Samriddhi still offer up to 8.2% yearly — often better than regular bank fixed deposits, with added tax perks.

Here's what happened: Government held small savings interest rates steady for Q1 FY2026-27 (April–June 2026), with no cuts across any scheme.. Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Account (SSA) lead at 8.2% per annum for eligible investors.. PPF remains at 7.1%, NSC at 7.7%, and Monthly Income Scheme at 7.4% — all backed by sovereign guarantee..

What you should do: Compare your current bank FD rate against SCSS or NSC — if your FD is below 7.7%, consider shifting a portion to Post Office schemes.. If you have a daughter under 10, open a Sukanya Samriddhi Account immediately to lock in the 8.2% rate before any future revision.. Senior citizens should maximise the SCSS deposit limit (currently ₹30 lakh) to earn guaranteed quarterly income at 8.2% per annum..

PPF interest is completely exempt under EEE tax status — you pay zero tax on contribution, growth, and maturity. At 7.1%, it effectively beats an 8.5% taxable FD for someone in the 20% tax bracket.