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Small savings rates unchanged for October-December 2026 quarter

30 September 20261 min read
BANKING & FINANCESmall savings ratesunchanged forOctober-December2026 quarter30 September 2026safalsetu.com

Why in the news

The Finance Ministry announced on 30 September 2026 that interest rates on small savings schemes will not change for the third quarter of FY 2026-27, covering 1 October to 31 December 2026. The rates have been held flat for a long stretch, since the January-March 2024 quarter.

Key facts

  • Sukanya Samriddhi Yojana (SSY) and Senior Citizens Savings Scheme (SCSS): 8.2% each.
  • National Savings Certificate (NSC): 7.7%.
  • Kisan Vikas Patra (KVP): 7.5%, with a maturity of 115 months.
  • Monthly Income Scheme (MIS): 7.4%.
  • Public Provident Fund (PPF): 7.1%.
  • Post office savings account: 4.0%.

Post office term deposits and recurring deposit

InstrumentRate
1-year time deposit6.9%
2-year time deposit7.0%
3-year time deposit7.1%
5-year time deposit7.5%
5-year recurring deposit6.7%

About small savings schemes

These are government-backed savings options, mostly sold through post offices and banks. Their rates are notified every quarter by the Finance Ministry, so each quarter begins with a fresh announcement even when nothing changes.

Exam angle

  • Remember the ranking: SSY = SCSS (8.2%) > NSC > KVP > MIS > PPF.
  • Rates are reset quarterly and notified by the Finance Ministry.
  • The 5-year post office time deposit (7.5%) matches the KVP rate.
  • The current rates apply for Q3 of FY 2026-27, that is October-December 2026.

Test yourself

1. Which two small savings schemes offer the highest rate of 8.2% for October-December 2026?

SSY and SCSS are both at 8.2%, above NSC (7.7%) and PPF (7.1%).

2. What is the PPF interest rate for the October-December 2026 quarter?

PPF stays at 7.1%; MIS is 7.4%, NSC 7.7% and KVP 7.5%.

3. Who announces the quarterly interest rates on small savings schemes?

The Finance Ministry announced the unchanged Q3 FY27 rates on 30 September 2026.

Sources: BusinessToday, ThePrint