Small Savings Rates 2026: Will Ministry of Finance Cut SCSS, PPF, SSY Interest?

• Ministry of Finance to review small savings scheme interest rates on December 31, 2025, for the Jan-Mar 2026 quarter.
• Current high rates include SCSS/SSA at 8.2% and PPF at 7.1%; RBI repo rate cuts and low inflation suggest potential reductions.
• Shyamala Gopinath Committee's formula, based on G-sec yields, indicates a possible PPF rate of 6.790% from the current 7.1%.
• Experts believe a rate cut is unlikely, citing government's historical tendency to protect savers and maintain deposit flows despite formula suggestions.
• Government prioritizes public reliance on these schemes, especially for pensioners and middle-class families, over strict adherence to market-linked formulas.

Why It Matters: Experts predict small savings rates like PPF, SCSS unlikely to be cut in 2026, prioritizing savers.