The last day of September will be crucial for millions of investors who invest in small savings schemes such as Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Kisan Vikas Patra (KVP) and others. This is because the interest rates of these small savings schemes for the October-December quarter are due for their next review. The government will review the interest rates on September 30, 2026. Ahead of this, investors want to know whether the government will maintain current interest rates or make changes.
Quarterly review of interest rates
The government reviews interest rates on small savings schemes every three months. Previously, the review, held on June 30, 2026, left all major schemes with no changes to interest rates for the July-September quarter. Following the review on September 30, the new rates applicable for the October-December period will be announced.
Government bond yields remain under watch
Government securities yields play a key role in determining the interest rates of small savings schemes. In particular, yields on government bonds with similar maturities are a key indicator. According to data, the yield on 10-year government bonds was approximately 6.74 per cent on June 30, 2026, and rose to approximately 7.05 per cent by September 22, an increase of about 31 basis points during this period. Investors will therefore closely watch whether higher yields will affect the interest rates of small savings schemes.
Options like PPF and Sukanya Samriddhi Yojana are very popular for long-term investments. Even small changes in their interest rates can impact investors’ overall returns over the long term. In Kisan Vikas Patra, the maturity period is as important as the interest rate. However, rising government bond yields do not necessarily mean that the government will increase interest rates on small savings schemes in the same proportion. The government will make the final decision.
According to data, more than four crore accounts were opened under the Sukanya Samriddhi scheme till November 2025, and more than Rs 3.25 lakh crore was deposited in these accounts.
Outcome to be announced on September 30
At this point, it’s too early to say whether the rates of PPF, SSY, KVP, or other schemes will increase, decrease, or remain at their current levels for the October-December quarter.Ā Ā
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