Interest rates on small savings schemes unchanged for 9th straight quarter | Business

Interest rates on small savings schemes unchanged for 9th straight quarter | Business


New Delhi:

The government on Tuesday announced that interest rates on various small savings schemes, including the Public Provident Fund (PPF) and National Savings Certificate (NSC), will remain unchanged for the Julyโ€“September 2026 quarter. This is the ninth consecutive quarter in which the rates have been kept unchanged, starting July 1, 2026.

No change in key savings schemes

According to the Finance Ministry notification, the interest rates for the second quarter of the financial year 2026โ€“27 will remain the same as those applicable in the previous quarter.

โ€œThe rates of interest on various Small Savings Schemes for the second quarter of FY 2026โ€“27 shall remain unchanged from those notified for the first quarter,โ€ the ministry said.

PPF, NSC and SSY rates remain steady

Under the revised notification, popular schemes continue to offer the same returns:

  • 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%
  • Kisan Vikas Patra (KVP): 7.5%
  • Post Office Monthly Income Scheme (POMIS): 7.4%

Other post office time deposits also remain unchanged, with returns ranging between 6.9% and 7.5%, depending on tenure.

Popular schemes continue to attract investors

Small savings schemes, mostly operated through post offices and banks, remain a preferred choice for risk-averse investors due to their safety and guaranteed returns. These include PPF, NSC, SSY, SCSS, KVP and recurring deposit schemes.

The government reviews these interest rates every quarter based on a formula linked to government security (G-Sec) yields, but has not made any changes since the fourth quarter of 2023โ€“24. The last major revision in these schemes came in early 2024, when minor increases were made in select schemes such as the three-year time deposit and Sukanya Samriddhi Yojana. Since then, rates have largely remained stable.

With the latest announcement, investors will continue to earn the same returns at least till September 30, 2026.

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