Small savings scheme interest rates unchanged for Q3 FY27: Check PPF, SCSS, SSY rates
Small savings interest rates have remained unchanged for the October-December 2026 quarter, with the government retaining the same rates for the ninth consecutive quarter. The PPF rate stays at 7.1%, while SCSS and Sukanya Samriddhi Yojana offer 8.2%, the highest rates among the major small savings schemes.
- Sep 30, 2026,
- Updated Sep 30, 2026 6:30 PM IST
The government has kept interest rates unchanged across all small savings schemes for the October-December 2026 quarter (Q2 FY27), extending the status quo for the ninth consecutive quarter. Investors in popular schemes such as PPF, SCSS and Sukanya Samriddhi Yojana will continue to earn the existing rates for another three months.
The Department of Economic Affairs, Ministry of Finance, announced the decision on Wednesday. The move means there will be no change in the returns offered by small savings schemes during the quarter beginning October 1, 2026.
Small savings interest rates for July-September 2026
| Small savings scheme | Interest rate | Tenure/lock-in |
|---|---|---|
| Sukanya Samriddhi Yojana | 8.2% | 21 years |
| Senior Citizens Savings Scheme | 8.2% | — |
| National Savings Certificate | 7.7% | — |
| Kisan Vikas Patra | 7.5% | — |
| 5-year Post Office Time Deposit | 7.5% | 5 years |
| Monthly Income Scheme | 7.4% | — |
| Public Provident Fund | 7.1% | 15 years |
| 3-year Post Office Time Deposit | 7.1% | 3 years |
| 2-year Post Office Time Deposit | 7% | 2 years |
| 1-year Post Office Time Deposit | 6.9% | 1 year |
| 5-year Recurring Deposit | 6.7% | 5 years |
| Post Office Savings Account | 4% | — |
How are small savings rates decided?
The government reviews interest rates on small savings schemes every quarter. The review takes into account factors including government bond yields, prevailing interest rates and market and geopolitical conditions.
The latest decision keeps the rates unchanged despite the quarterly review mechanism.
When were rates last changed?
Interest rates on most small savings schemes have remained unchanged since the January-March quarter of FY 2023-24, marking the ninth consecutive quarter without a broad revision.
The last changes came in April 2024, when the government raised the interest rate on the three-year Post Office Time Deposit from 7% to 7.1%. The rate on the Sukanya Samriddhi Yojana was also increased from 8% to 8.2%.
Small savings schemes remain popular among conservative, long-term investors seeking predictable returns without exposure to day-to-day market fluctuations. These schemes are backed by the government and offer stable returns, while some also provide tax benefits.
The PPF and SSY are among schemes offering the EEE tax treatment, under which contributions, accumulated interest and withdrawals are exempt from tax, subject to applicable rules.
The government has kept interest rates unchanged across all small savings schemes for the October-December 2026 quarter (Q2 FY27), extending the status quo for the ninth consecutive quarter. Investors in popular schemes such as PPF, SCSS and Sukanya Samriddhi Yojana will continue to earn the existing rates for another three months.
The Department of Economic Affairs, Ministry of Finance, announced the decision on Wednesday. The move means there will be no change in the returns offered by small savings schemes during the quarter beginning October 1, 2026.
Small savings interest rates for July-September 2026
| Small savings scheme | Interest rate | Tenure/lock-in |
|---|---|---|
| Sukanya Samriddhi Yojana | 8.2% | 21 years |
| Senior Citizens Savings Scheme | 8.2% | — |
| National Savings Certificate | 7.7% | — |
| Kisan Vikas Patra | 7.5% | — |
| 5-year Post Office Time Deposit | 7.5% | 5 years |
| Monthly Income Scheme | 7.4% | — |
| Public Provident Fund | 7.1% | 15 years |
| 3-year Post Office Time Deposit | 7.1% | 3 years |
| 2-year Post Office Time Deposit | 7% | 2 years |
| 1-year Post Office Time Deposit | 6.9% | 1 year |
| 5-year Recurring Deposit | 6.7% | 5 years |
| Post Office Savings Account | 4% | — |
How are small savings rates decided?
The government reviews interest rates on small savings schemes every quarter. The review takes into account factors including government bond yields, prevailing interest rates and market and geopolitical conditions.
The latest decision keeps the rates unchanged despite the quarterly review mechanism.
When were rates last changed?
Interest rates on most small savings schemes have remained unchanged since the January-March quarter of FY 2023-24, marking the ninth consecutive quarter without a broad revision.
The last changes came in April 2024, when the government raised the interest rate on the three-year Post Office Time Deposit from 7% to 7.1%. The rate on the Sukanya Samriddhi Yojana was also increased from 8% to 8.2%.
Small savings schemes remain popular among conservative, long-term investors seeking predictable returns without exposure to day-to-day market fluctuations. These schemes are backed by the government and offer stable returns, while some also provide tax benefits.
The PPF and SSY are among schemes offering the EEE tax treatment, under which contributions, accumulated interest and withdrawals are exempt from tax, subject to applicable rules.