The government has left interest rates on small savings schemes unchanged for the October-December quarter — the tenth straight quarterly review without a revision — the Finance Ministry said in a notification on Wednesday.
"The rates of interest on various Small Savings Schemes for the third quarter of FY 2026-27, starting from October 1, 2026, and ending on December 31, 2026, shall remain unchanged from those notified for the second quarter (July 1, 2026, to September 30, 2026) of FY 2026-27," the ministry said, according to PTI.
What stays where
As per the notification, deposits under the Sukanya Samriddhi Scheme will earn 8.2 per cent, while the popular Public Provident Fund (PPF) stays at 7.1 per cent and post office savings deposits at 4 per cent. The National Savings Certificate will earn 7.7 per cent, Kisan Vikas Patra 7.5 per cent (maturing in 115 months), and the post office monthly income scheme 7.4 per cent, PTI reported. The Senior Citizens' Savings Scheme also stays at 8.2 per cent.
The freeze matters for crores of households that park savings in post-office and bank-operated government schemes, particularly at a time when equity markets have had a weak year and deposit rates are under close watch. It also comes ahead of the Reserve Bank of India's monetary policy meeting from October 5 to 7, where the repo rate — currently 5.25 per cent — will be under review.
The government last changed rates on some schemes in the fourth quarter of 2023-24, PTI reported. The ten-quarter freeze is the longest stretch of unchanged small-savings rates in recent years, and it arrives at an unusual moment: the 10-year government bond yield has climbed above the PPF rate, compressing the real returns small savers earn.
Sources:
- Interest rates on small savings schemes remain unchanged for Oct-Dec — Business Standard (PTI)
- Govt keeps interest rates on small savings schemes unchanged for Oct-Dec — ThePrint (PTI)
"The rates of interest on various Small Savings Schemes for the third quarter of FY 2026-27, starting from October 1, 2026, and ending on December 31, 2026, shall remain unchanged from those notified for the second quarter (July 1, 2026, to September 30, 2026) of FY 2026-27," the ministry said, according to PTI.
What stays where
As per the notification, deposits under the Sukanya Samriddhi Scheme will earn 8.2 per cent, while the popular Public Provident Fund (PPF) stays at 7.1 per cent and post office savings deposits at 4 per cent. The National Savings Certificate will earn 7.7 per cent, Kisan Vikas Patra 7.5 per cent (maturing in 115 months), and the post office monthly income scheme 7.4 per cent, PTI reported. The Senior Citizens' Savings Scheme also stays at 8.2 per cent.
The freeze matters for crores of households that park savings in post-office and bank-operated government schemes, particularly at a time when equity markets have had a weak year and deposit rates are under close watch. It also comes ahead of the Reserve Bank of India's monetary policy meeting from October 5 to 7, where the repo rate — currently 5.25 per cent — will be under review.
The government last changed rates on some schemes in the fourth quarter of 2023-24, PTI reported. The ten-quarter freeze is the longest stretch of unchanged small-savings rates in recent years, and it arrives at an unusual moment: the 10-year government bond yield has climbed above the PPF rate, compressing the real returns small savers earn.
Sources:
- Interest rates on small savings schemes remain unchanged for Oct-Dec — Business Standard (PTI)
- Govt keeps interest rates on small savings schemes unchanged for Oct-Dec — ThePrint (PTI)
