New Delhi: In a crucial update for retail investors across the country, the central government on Wednesday announced that interest rates on all small savings schemes, including the Public Provident Fund (PPF) and National Savings Certificate (NSC), will remain unchanged for the October-December quarter of the financial year 2026-27.
This decision marks the tenth consecutive quarter where the government has maintained the status quo on small savings interest rates. According to an official notification issued by the Finance Ministry, the interest rates for the upcoming third quarter (October 1, 2026, to December 31, 2026) will be identical to those offered during the previous July-September quarter. The government last revised these rates during the fourth quarter of the 2023-24 financial year.
Under the unchanged structure, the popular girl child savings plan, Sukanya Samriddhi Yojana (SSY), will continue to offer an attractive return of 8.2 per cent to its subscribers. The interest rate for the widely utilized Public Provident Fund (PPF) is held steady at 7.1 per cent, while standard post office savings deposits will continue to earn a 4 per cent interest rate. For investors holding a three-year term deposit, the returns remain locked in at 7.1 per cent for the upcoming three months.
The Finance Ministry notification further outlined that the National Savings Certificate (NSC) will continue to yield a 7.7 per cent interest rate for the October-December period. Similarly, the Monthly Income Scheme will maintain its 7.4 per cent return rate, offering consistency for those relying on regular payouts. Subscribers of the Kisan Vikas Patra (KVP) will continue to earn 7.5 per cent, with their investments set to mature in 115 months.
Primarily operated through post offices and authorized commercial banks, these small savings schemes are highly favoured by the middle class and senior citizens for their safety and guaranteed returns. For everyday savers, this quarterly announcement is a significant indicator, as it determines the yield on any fresh investments made over the next three months. Meanwhile, existing deposits will continue to accrue interest based on the established rules of their respective schemes, providing stability to investors’ long-term financial planning.