Small savings scheme investors will continue to receive the existing interest rates during the October-December 2026 quarter. The government announced on Wednesday that there would be no change in the rates for the three-month period.
Popular schemes including the Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana and Senior Citizen Savings Scheme (SCSS) will continue with their existing interest rates.
The rates had also remained unchanged during the July-September quarter. Small savings schemes are widely used by investors seeking relatively low-risk investment options, with their interest rates reviewed by the government every three months.
Current Interest Rates on Small Savings Schemes
The interest rates applicable for the October-December 2026 quarter include 8.2% for both the Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana.
The Post Office Monthly Income Scheme will continue to offer 7.4%, while the Kisan Vikas Patra will carry an interest rate of 7.5%.
Post Office Time Deposit rates vary according to the investment period. A five-year Post Office Time Deposit offers 7.5%, while the five-year Post Office Recurring Deposit carries an interest rate of 6.7%.
How Small Savings Interest Rates Are Decided
Interest rates for small savings schemes are linked to government securities, commonly known as G-Secs. Each scheme has a specified spread over the corresponding G-Sec yield, meaning movements in government bond yields can influence the rates offered under these schemes.
However, the government has the final authority to decide the applicable rates and announces them for each quarter.
The previous adjustment in small savings interest rates was made for the January-March quarter of 2024. In December 2023, the government increased the rate on the three-year Post Office Time Deposit from 7% to 7.1%. The interest rate on the Sukanya Samriddhi Yojana was also raised from 8% to 8.2%.
What the Decision Means for Investors
The decision to keep interest rates unchanged means investors opening or making investments in eligible small savings schemes between October and December will receive returns at the rates applicable for the quarter.
For people who already hold investments in these schemes, the latest announcement does not immediately alter their existing arrangements. Their investments will continue to earn interest according to the rules applicable to the respective schemes.
Since small savings rates are reviewed every three months, the government may consider changes for the January-March 2027 quarter during the next review. For the October-December period, however, the existing rates will remain in effect.
Disclaimer: The interest rates and information mentioned in this article are based on the government’s announcement for the October-December 2026 quarter and are provided for general informational purposes. Investors should check the latest official notifications and scheme-specific rules before making investment decisions.