Kolkata: The Finance Ministry has decided to keep the interest rates on small savings schemes unchanged for the October-December 2026 quarter. The decision continues the existing rates for the ninth consecutive quarter, despite expectations that rising government bond yields and changing global interest-rate conditions could lead to an increase.
The decision comes at a time when global interest rates are moving higher. The US Federal Reserve recently raised its policy rate, while SBI Research has recommended that the Reserve Bank of India consider two 25-basis-point repo rate increases, one in October and another in December.
Even without a rate revision, small savings schemes continue to offer fixed returns and are widely used by savers looking for relatively stable investment options. Among the commonly used schemes are the Public Provident Fund (PPF), National Savings Certificate (NSC), Post Office Monthly Income Scheme (POMIS), Kisan Vikas Patra (KVP) and Senior Citizen Savings Scheme (SCSS).
PPF: Interest Rate 7.1%
The Public Provident Fund, or PPF, remains one of the most widely known small savings options. It offers a government-backed savings structure and has a 15-year maturity period, which can be extended in blocks of five years.
For investors following the old income tax regime, PPF also provides tax-related benefits on contributions, interest and the maturity corpus, subject to applicable rules.
With its long-term structure and focus on capital protection, the scheme is commonly used for building a long-term savings corpus.
POMIS: Interest Rate 7.4%
The Post Office Monthly Income Scheme (POMIS) is designed for investors who want regular monthly interest income from a lump-sum investment.
The scheme has a five-year tenure, with interest paid every month. The minimum investment is ₹1,000, while the maximum limit is ₹9 lakh for an individual account. For a joint account held by two people, the maximum investment limit is ₹15 lakh.
NSC: Interest Rate 7.7%
The National Savings Certificate (NSC) is a five-year post office savings instrument. The minimum investment starts at ₹1,000, and there is no maximum investment limit.
Interest is compounded annually, while the accumulated amount is paid at maturity. Premature closure is permitted only under specified circumstances, including the death of the account holder or an order from a court.
SCSS: Interest Rate 8.2%
The Senior Citizen Savings Scheme (SCSS) is specifically designed for senior citizens and aims to provide a regular source of income.
The scheme has an initial tenure of five years, with an option to extend it by another three years. The minimum deposit is ₹1,000, while the maximum deposit is ₹30 lakh.
Interest is paid quarterly, with payments scheduled around the first working day of April, July, October and January.
Other Post Office Small Savings Rates
The interest rates for other major post office savings instruments for the October-December 2026 quarter are:
| Scheme | Interest Rate |
|---|---|
| 1-Year Time Deposit | 6.9% |
| 2-Year Time Deposit | 7.0% |
| 3-Year Time Deposit | 7.1% |
| 5-Year Time Deposit | 7.5% |
| 5-Year Recurring Deposit | 6.7% |
The Finance Ministry’s September 30 notification confirmed that the rates applicable during the July-September 2026 quarter will continue unchanged from October 1 to December 31, 2026.
Disclaimer: This article is intended for general informational purposes only. Interest rates, investment limits, tax treatment and withdrawal rules may change according to government notifications and applicable regulations. Readers should check the latest official information before making any financial decision.