The Centre has decided to keep interest rates on all small savings schemes unchanged for the July-September quarter of FY2026-27. This move provides stability for millions of investors who rely on government-backed savings instruments. The interest rates applicable from July 1 to September 30, 2026, will remain the same as those notified for the April-June quarter, ensuring continuity in returns across popular small savings schemes.
Investors in schemes like the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Monthly Income Scheme (POMIS), Kisan Vikas Patra (KVP), and various Post Office Time Deposits will continue to earn existing interest rates. Among these schemes, the Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana offer the highest annual interest rate of 8.2 per cent. The National Savings Certificate will provide a return of 7.7 per cent, while the Public Provident Fund remains at 7.1 per cent per annum.
The Post Office Monthly Income Scheme will continue to offer an annual return of 7.4 per cent, and Kisan Vikas Patra will retain an interest rate of 7.5 per cent, with investments maturing after 115 months. Interest rates on Post Office Time Deposits have also been left unchanged. One-year deposits will continue to earn 6.9 per cent, two-year deposits 7 per cent, three-year deposits 7.1 per cent, and five-year deposits 7.5 per cent annually. The five-year Post Office Recurring Deposit will offer an interest rate of 6.7 per cent.
Small savings schemes are favored by risk-averse investors for their stable and predictable returns backed by the Government of India. These schemes also qualify for tax benefits under the Income Tax Act, making them attractive options for long-term savings and retirement planning. The government reviews interest rates on small savings schemes every quarter using a formula linked to the yields on government securities. While revisions are not mandatory each quarter, rates have largely remained unchanged in recent years, with only selective increases announced earlier for schemes like the Senior Citizen Savings Scheme and certain time deposits.
