Govt keeps small savings interest rates unchanged for July-September quarter; check latest PPF, SCSS, SSY rates
The government has left interest rates on all small savings schemes unchanged for the July-September 2026 quarter, offering continued stability to investors in PPF, SCSS, Sukanya Samriddhi, NSC and Post Office deposit schemes. The decision keeps returns intact for another quarter amid an uncertain global economic environment.
- Jun 30, 2026,
- Updated Jun 30, 2026 5:40 PM IST
The government has kept interest rates on all small savings schemes unchanged for the July-September 2026 quarter (Q2 FY27), extending the status quo for another quarter. The rates will remain the same as those notified for the April-June 2026 quarter.
In a notification issued on Tuesday, the Department of Economic Affairs, Ministry of Finance, said: "The rates of interest on various Small Savings Schemes for the second quarter of FY 2026-27 starting from 1st July, 2026 and ending on 30th September, 2026 shall remain unchanged from those notified for the first quarter (1st April, 2026 to 30th June, 2026) of FY 2026-27."
The decision means investors in popular government-backed savings schemes such as the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC) and Post Office Monthly Income Scheme (POMIS) will continue to earn the same returns during the September quarter.
Current Interest Rates July-September 2026 Quarter
The Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) continue to offer the highest interest rate of 8.2% per annum among major small savings schemes. The National Savings Certificate (NSC) offers 7.7%, while the Public Provident Fund (PPF) continues at 7.1% per annum.
The Post Office Monthly Income Scheme (POMIS) will continue to offer 7.4%, while the Kisan Vikas Patra (KVP) carries an interest rate of 7.5%, with the investment maturing in 115 months.
MUST READ: Post Office Time Deposit vs Bank Fixed Deposit: Which offers better returns, safety and flexibility?
Interest rates on Post Office Time Deposits also remain unchanged. The one-year deposit earns 6.9%, the two-year deposit 7%, the three-year deposit 7.1%, and the five-year deposit 7.5%. The five-year Post Office Recurring Deposit (RD) continues to offer 6.7%.
Small savings interest rates for July-September 2026
| Small Savings Scheme | Interest Rate |
|---|---|
| Public Provident Fund (PPF) | 7.1% |
| Senior Citizen Savings Scheme (SCSS) | 8.2% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Post Office Monthly Income Scheme (POMIS) | 7.4% |
| Kisan Vikas Patra (KVP) | 7.5% |
| 1-Year Post Office Time Deposit | 6.9% |
| 2-Year Post Office Time Deposit | 7.0% |
| 3-Year Post Office Time Deposit | 7.1% |
| 5-Year Post Office Time Deposit | 7.5% |
| 5-Year Post Office Recurring Deposit (RD) | 6.7% |
Small savings schemes popularity
Small savings schemes remain a preferred investment avenue for conservative investors seeking stable and predictable returns without exposure to stock market volatility. Since these schemes are backed by the Government of India, they are considered among the safest fixed-income investment options. Several schemes also offer tax benefits under the Income Tax Act, making them popular for long-term financial planning.
MUST READ: Fixed Deposit for children or Sukanya Samriddhi Yojana? Here's how the two savings options compare
The government reviews interest rates on small savings schemes every quarter based on a formula linked to yields on government securities, although it is not mandatory to revise rates each time. Over the past several quarters, the Centre has largely maintained rates, with selective increases introduced earlier for certain schemes such as SCSS and selected time deposits.
The government has kept interest rates on all small savings schemes unchanged for the July-September 2026 quarter (Q2 FY27), extending the status quo for another quarter. The rates will remain the same as those notified for the April-June 2026 quarter.
In a notification issued on Tuesday, the Department of Economic Affairs, Ministry of Finance, said: "The rates of interest on various Small Savings Schemes for the second quarter of FY 2026-27 starting from 1st July, 2026 and ending on 30th September, 2026 shall remain unchanged from those notified for the first quarter (1st April, 2026 to 30th June, 2026) of FY 2026-27."
The decision means investors in popular government-backed savings schemes such as the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC) and Post Office Monthly Income Scheme (POMIS) will continue to earn the same returns during the September quarter.
Current Interest Rates July-September 2026 Quarter
The Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) continue to offer the highest interest rate of 8.2% per annum among major small savings schemes. The National Savings Certificate (NSC) offers 7.7%, while the Public Provident Fund (PPF) continues at 7.1% per annum.
The Post Office Monthly Income Scheme (POMIS) will continue to offer 7.4%, while the Kisan Vikas Patra (KVP) carries an interest rate of 7.5%, with the investment maturing in 115 months.
MUST READ: Post Office Time Deposit vs Bank Fixed Deposit: Which offers better returns, safety and flexibility?
Interest rates on Post Office Time Deposits also remain unchanged. The one-year deposit earns 6.9%, the two-year deposit 7%, the three-year deposit 7.1%, and the five-year deposit 7.5%. The five-year Post Office Recurring Deposit (RD) continues to offer 6.7%.
Small savings interest rates for July-September 2026
| Small Savings Scheme | Interest Rate |
|---|---|
| Public Provident Fund (PPF) | 7.1% |
| Senior Citizen Savings Scheme (SCSS) | 8.2% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Post Office Monthly Income Scheme (POMIS) | 7.4% |
| Kisan Vikas Patra (KVP) | 7.5% |
| 1-Year Post Office Time Deposit | 6.9% |
| 2-Year Post Office Time Deposit | 7.0% |
| 3-Year Post Office Time Deposit | 7.1% |
| 5-Year Post Office Time Deposit | 7.5% |
| 5-Year Post Office Recurring Deposit (RD) | 6.7% |
Small savings schemes popularity
Small savings schemes remain a preferred investment avenue for conservative investors seeking stable and predictable returns without exposure to stock market volatility. Since these schemes are backed by the Government of India, they are considered among the safest fixed-income investment options. Several schemes also offer tax benefits under the Income Tax Act, making them popular for long-term financial planning.
MUST READ: Fixed Deposit for children or Sukanya Samriddhi Yojana? Here's how the two savings options compare
The government reviews interest rates on small savings schemes every quarter based on a formula linked to yields on government securities, although it is not mandatory to revise rates each time. Over the past several quarters, the Centre has largely maintained rates, with selective increases introduced earlier for certain schemes such as SCSS and selected time deposits.