The Ministry of Finance has announced the interest rate applicable to deposits under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds for the last quarter of the current financial year.
As per a notification issued by the Department of Economic Affairs on 9 January 2026, deposits made under the scheme shall carry an interest rate of 7.1% for the period from 1 January 2026 to 31 March 2026. The rate will remain effective throughout this quarter.
Background of the Scheme
The Special Deposit Scheme was originally introduced through a notification dated 30 June 1975 to regulate the investment of surplus funds belonging to non-government provident funds, superannuation funds, and gratuity funds. These deposits are maintained with the Central Government and earn interest at rates notified periodically.
What This Means for Provident and Gratuity Funds
With the interest rate fixed at 7.1%, trustees and administrators of eligible non-government funds can factor in stable and predictable returns for the final quarter of FY 2025-26. The rate is aligned with prevailing small savings and fixed-income benchmarks, ensuring safety and assured income for long-term employee benefit funds.
Effective Date
- Interest Rate: 7.1% per annum
- Applicable Period: 1 January 2026 to 31 March 2026
- Authority: Ministry of Finance, Department of Economic Affairs
The notification has been issued under the signature of VYASAN R., Joint Secretary, Ministry of Finance.
Fund managers and trustees are advised to take note of the notified rate while planning investments and accounting for interest income during the said period.
Official copy of the notification is as follows
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION New Delhi, the 9th January, 2026
F. No. 5(3)-B(PD)/2023. - It is hereby notified that the deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No.F.16(1)-PD/75 dated 30th June, 1975, shall with effect from 1st January, 2026 to 31st March, 2026 bear interest at 7.1% (seven point one percent).
This rate will be in force w.e.f. 1st January, 2026.
VYASAN R., Jt. Secy.
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