Special deposit scheme interest remains 7.1% for provident, superannuation & gratuity funds

The Ministry of Finance has announced that deposits made under the special deposit scheme (SDS) for non-government provident funds, superannuation funds, and gratuity funds will earn an interest rate of 7.1 per cent for the period from 1 January to 31 March 2026. The interest rate remains unchanged from the previous quarter.

The Department notified the decision through a Gazette notification dated 9 January 2026, issued under the original Special Deposit Scheme notification of 1975. The Gazette notification states:

“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).”

The notification was signed by Vyasan R, Joint Secretary to the Government of India, Ministry of Finance, Department of Economic Affairs.

The Special Deposit Scheme (SDS) allows non-government organisations, including private companies and bodies such as the Employees’ Provident Fund Organisation (EPFO), to invest money collected under provident, superannuation, and gratuity funds with the government.

Superannuation is a retirement benefit provided by employers, where contributions are made to a superannuation fund during an employee’s service, and the accumulated amount is paid at retirement as a pension, a lump sum, or both.