The Ministry of Finance has announced the latest interest rates for Central Government-backed small savings schemes for the second quarter of FY 2026-27, covering the period July 1, 2026, to September 30, 2026. As expected, the government has kept interest rates unchanged, offering stability for millions of investors who rely on these schemes for safe and guaranteed returns.
Popular investment options such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVP), and Post Office Fixed Deposits will continue to offer the existing rates during the quarter.
PPF Interest Rate Remains Unchanged at 7.1%
The Public Provident Fund (PPF) will continue to earn 7.1% annual interest, maintaining its position as one of India's most popular long-term tax-saving investment options.
The government has also retained the existing rates for all other major small savings schemes, ensuring predictable returns for investors.
Latest Small Savings Interest Rates (July–September 2026)
The Finance Ministry's latest notification confirms the following interest rates:
Small Savings Scheme Interest Rate
Post Office Savings Account 4.0%
1-Year Post Office 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%
Public Provident Fund (PPF) 7.1%
National Savings Certificate (NSC) 7.7%
Sukanya Samriddhi Yojana (SSY) 8.2%
Senior Citizen Savings Scheme (SCSS) 8.2%
Monthly Income Scheme (MIS) 7.4%
Kisan Vikas Patra (KVP) 7.5%
Kisan Vikas Patra Maturity
Investors selecting Kisan Vikas Patra (KVP) will continue to receive an interest rate of 7.5%, with the investment maturing after 115 months.
The scheme remains popular among conservative investors looking for guaranteed returns backed by the Government of India.
Sukanya Samriddhi and Senior Citizen Savings Scheme Continue at 8.2%
Among all small savings schemes, the Sukanya Samriddhi Yojana (SSY) and the Senior Citizen Savings Scheme (SCSS) continue to offer one of the highest interest rates at 8.2% per annum.
These schemes remain attractive options for:
Parents saving for a daughter's future.
Senior citizens seeking regular and secure income.
Long-term investors looking for government-backed returns.
National Savings Certificate Offers 7.7%
The National Savings Certificate (NSC) continues to provide an annual interest rate of 7.7%, making it a preferred investment option for individuals seeking fixed returns along with tax benefits under the old tax regime.
Why Small Savings Schemes Remain Popular
Government-backed small savings schemes continue to attract millions of investors because they offer:
Sovereign guarantee from the Government of India.
Stable and predictable returns.
Low investment risk.
Tax-saving benefits under eligible schemes.
Long-term wealth creation through disciplined savings.
These schemes are especially suitable for conservative investors who prioritize capital protection over market-linked returns.
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