Small savings scheme interest rates unchanged for Oct-Dec quarter

The Ministry of Finance on Wednesday announced that it has left interest rates on key small savings schemes unchanged for the third quarter of FY2026-27, providing stability to millions of depositors investing in government-backed savings instruments. In an official notification, the Finance Ministry said the interest rates applicable to various small savings schemes for the quarter starting October 1, 2026, and ending December 31, 2026, will remain the same as those notified for the July-September quarter.

The decision means investors in popular savings instruments such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Savings Certificate (NSC) will continue to earn the existing rates of return during the October-December period. Under the current rate structure, PPF deposits will continue to earn an annual interest rate of 7.1 per cent. The Sukanya Samriddhi Yojana, aimed at encouraging savings for the girl child, will continue to offer 8.2 per cent interest, making it one of the highest-yielding small savings schemes.

Meanwhile, investments in the National Savings Certificate will continue to fetch an annual interest rate of 7.7 per cent. Small savings schemes are widely used by retail investors seeking secure and predictable returns and play an important role in household financial planning. The government's decision to maintain rates unchanged is expected to provide certainty to savers while preserving the attractiveness of these schemes amid evolving interest rate conditions.

The quarterly revision of small savings interest rates is closely watched by investors as it determines the returns available on fresh investments made during the upcoming three-month period. Existing investments, however, continue to earn interest in accordance with the terms and conditions of the respective schemes. With the government retaining the rates for the October-December quarter, investors will continue to receive the same returns on fresh deposits as well as ongoing investments in the notified small savings schemes. The Finance Ministry's notification announced that interest rates would remain unchanged for the third quarter of FY2026-27, but it did not provide a scheme-wise breakdown of the applicable rates.