The government has announced the interest rates for small savings schemes for the October-December 2026 quarter, bringing an important update for millions of people who invest in government-backed savings products. There is no change in the rates for the new quarter, meaning investors in schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Senior Citizens' Savings Scheme (SCSS) and Kisan Vikas Patra (KVP) will continue to earn interest at the existing rates.

The decision means the interest structure applicable during the July-September 2026 quarter will continue for another three months.

Small savings schemes are widely used by investors seeking government-backed savings options for long-term goals, retirement planning, regular income and building a financial corpus for children.

PPF Interest Rate Remains at 7.1%

The Public Provident Fund, one of the most popular long-term savings schemes, will continue to offer an annual interest rate of 7.1% during the October-December 2026 quarter.

PPF is commonly used for long-term wealth accumulation and retirement planning. Its long tenure and government backing make it an option for investors who prefer to limit their exposure to market-linked volatility.

There had been expectations among some investors that the government could revise small savings rates for the new quarter. However, the latest announcement keeps PPF and the other major schemes unchanged.

Sukanya and SCSS Continue to Offer 8.2%

Among the major small savings products, Sukanya Samriddhi Yojana and the Senior Citizens' Savings Scheme will continue to offer 8.2% per annum.

Sukanya Samriddhi Yojana is designed to help families build a long-term corpus for a girl child's future financial requirements. SCSS, meanwhile, is aimed primarily at eligible senior citizens seeking a government-backed savings and income option.

The National Savings Certificate will continue to offer 7.7%, while the Kisan Vikas Patra rate remains at 7.5%.

Investors in the Post Office Monthly Income Scheme (MIS) will continue to receive an interest rate of 7.4% per annum.

Small Savings Interest Rates for October-December 2026

Here are the key rates applicable for the new quarter:

These rates will remain applicable for the October 1 to December 31, 2026 quarter, unless otherwise notified under the applicable rules.

Post Office Time Deposit Rates Also Remain Unchanged

Investors using Post Office Time Deposits will also continue with the existing interest rates.

A one-year Post Office Time Deposit will offer an annual interest rate of 6.9%, while the rate for a two-year deposit is 7%.

For a three-year Post Office Time Deposit, investors will continue to earn 7.1%, while the five-year deposit will offer 7.5%.

The five-year Post Office Recurring Deposit, meanwhile, continues with an interest rate of 6.7%.

This gives savers several maturity options depending on how long they are prepared to keep their money invested.

How Does the Government Decide Small Savings Rates?

Interest rates on government small savings schemes are reviewed every quarter. The rate-setting framework takes into consideration yields on government securities, commonly known as G-Secs.

Different small savings products have different spreads linked to the relevant government security yields. Therefore, movements in G-Sec yields can influence the rates that may be considered for these schemes.

However, changes in government bond yields do not automatically result in an identical change in small savings rates. The final rates are notified by the government for each quarter.

This is why investors closely follow the quarterly announcement, particularly those relying on PPF, SCSS, NSC, Sukanya Samriddhi and Post Office schemes for long-term savings or income.

When Were Small Savings Rates Last Changed?

The interest rates on major small savings schemes have remained largely stable for several quarters.

The last revision mentioned in the previous rate cycle was announced in December 2023 for the January-March 2024 quarter.

At that time, the government increased the interest rate on the three-year Post Office Time Deposit from 7% to 7.1%.

The Sukanya Samriddhi Yojana rate was also raised from 8% to 8.2%. Since then, the rates on the major schemes covered by the latest announcement have remained unchanged.

What Does the October-December Decision Mean for Investors?

For existing investors, the latest announcement brings continuity rather than a change in returns. People investing in PPF will continue with the notified 7.1% rate, while Sukanya Samriddhi and SCSS will retain their 8.2% rates.

Similarly, NSC, KVP, Post Office MIS and Post Office deposit investors will continue under the existing interest-rate structure for the new quarter.

The next quarterly review will determine whether these rates remain unchanged again or are revised for the January-March 2027 quarter. Any future change will depend on the government's notification and the factors considered under its small savings rate-setting framework.