Interest rates on small savings schemes such as PPF, Sukanya Samriddhi Yojana and the Senior Citizens Savings Scheme will stay the same from October 1 to December 31, 2026. The Department of Economic Affairs in the Finance Ministry announced this in an office memorandum dated September 30, 2026.
The memorandum says the rates for the third quarter of 2026-27 "shall remain unchanged" from those notified for the second quarter (July 1 to September 30, 2026). The second-quarter rates were themselves carried over from April-June 2026, as per the ministry's memorandum of June 30, 2026. So savers will see the same rates for the whole of 2026 so far and up to the end of December.
Rates for October-December 2026
| Scheme | Interest rate (per year) |
|---|---|
| Post Office Savings Account | 4.0% |
| 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 Recurring Deposit | 6.7% |
| Monthly Income Scheme (MIS) | 7.4% |
| National Savings Certificate (NSC) | 7.7% |
| Kisan Vikas Patra (KVP) | 7.5% |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| Senior Citizens Savings Scheme (SCSS) | 8.2% |
The ministry's memorandum does not repeat the table; it only states that the earlier rates continue. The scheme-wise figures above are the rates in force in the previous quarters, as reported on September 30, 2026.
Key points
- No change for any scheme for October 1 to December 31, 2026.
- Highest rates: Sukanya Samriddhi Yojana and SCSS, both at 8.2%.
- PPF stays at 7.1%, the rate it has carried for several years.
- Next review: the government sets these rates every quarter, so the next decision is due before January 1, 2027.
What it means for you
- New deposits made between October 1 and December 31, 2026 in fixed-rate schemes such as NSC, KVP, MIS, SCSS and post office time deposits get the rates above.
- Running deposits: for these fixed-rate schemes, the rate that applied on the day you opened the account usually continues till maturity, so a quarterly change does not affect them.
- PPF and SSY accounts earn whatever rate is notified for each quarter. With no change, the interest credited for this quarter will be at 7.1% and 8.2% respectively.
- These are government-backed schemes run through post offices and authorised banks. The rate is only one factor; lock-in period, tax treatment and how soon you need the money also matter. Check the rules of each scheme at your post office or bank before you invest.
Background
Since April 2016, small savings rates have been reset every quarter. The government links them broadly to the yields on government securities of similar maturity. The Department of Economic Affairs announces the rates for the coming quarter at the end of the previous one.
Changes in bank deposit rates, which follow the Reserve Bank of India's policy rate, can affect how these schemes compare with bank fixed deposits.
Other money-related deadlines this season include the extended ITR due date for audit cases, now November 21, 2026. Recent data on the economy is in our report on industrial production growth of 8.0% in August 2026.
What happens next
The rates for January-March 2027 are expected to be announced by the end of December 2026. Until then, the rates in the table above apply at all post offices and authorised bank branches.
