The Indian government has decided to keep the interest rates on various small savings schemes unchanged for the second quarter of the 2026-27 financial year, spanning July 1 to September 30, 2026. This decision ensures stability for millions of investors in popular government-backed schemes like the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Sukanya Samriddhi Yojana (SSY).
A notification issued by the Department of Economic Affairs, under the Ministry of Finance, confirmed that the rates for this quarter will be identical to those applied during the April-June 2026 quarter. This move provides continuity for small investors amidst the prevailing economic climate.
Key Schemes and Their Rates
Investors in several prominent small savings instruments will see their returns remain consistent. The Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) continue to offer the highest rates among the major schemes, both at 8.2% per annum.
- Public Provident Fund (PPF): 7.1% p.a.
- Senior Citizen Savings Scheme (SCSS): 8.2% p.a.
- Sukanya Samriddhi Yojana (SSY): 8.2% p.a.
- National Savings Certificate (NSC): 7.7% p.a.
- Post Office Monthly Income Scheme (POMIS): 7.4% p.a.
- Kisan Vikas Patra (KVP): 7.5% p.a.
Post Office Time Deposits and Recurring Deposit
The rates for various Post Office Time Deposit schemes and the Post Office Recurring Deposit also remain steady:
- 1-Year Post Office Time Deposit: 6.9% p.a.
- 2-Year Post Office Time Deposit: 7.0% p.a.
- 3-Year Post Office Time Deposit: 7.1% p.a.
- 5-Year Post Office Time Deposit: 7.5% p.a.
- 5-Year Post Office Recurring Deposit (RD): 6.7% p.a.
The government's consistent approach to these rates aims to provide a predictable savings environment for individuals relying on these schemes for long-term financial planning and retirement security.