The government on Wednesday did not change the interest rates of small savings schemes like PPF and NSC. This is the tenth consecutive quarter that rates have been kept the same and the change will take effect from October 1, 2026. The finance ministry has said in a notification that for the third quarter of the financial year 2026-27 (from October 1, 2026 to December 2026), the interest rates on various small savings schemes will remain the same as the state rate till 2026. Second quarter of financial year 2026-27 (July 1, 2026 to September 30, 2026).
What will be the interest rate?
- According to the notification, 8.2 percent interest will be earned on the amount deposited under Sukanya Samriddhi Yojana.
- During the third quarter, the interest rate on three-year term deposits will be 7.1 percent.
- Interest rates for the popular Public Provident Fund (PPF) and Post Office Savings Deposit Schemes have been kept at 7.1 per cent and 4 per cent respectively.
- The rate of interest on Kisan Vikas Patra will be 7.5 percent and the investment will mature in 115 months.
- The interest rate on National Savings Certificate (NSC) will remain at 7.7 percent for the October-December quarter.
- Like the current quarter, in the third quarter too, investors will get 7.4 percent interest in the monthly income plan.
What this decision means for investors
Also, interest rates on small savings schemes run by post offices and banks remained unchanged for the 10th consecutive quarter. The government last revised the interest rates of some schemes in the fourth quarter of 2023-24. The decision on the quarterly rate is important for savers as it determines the returns on new investments over the next three months, while existing deposits continue to earn interest as per the rules of the respective scheme. For savers, this decision means that there will be no change in interest rates for the October-December quarter, whether they are investing in these schemes for the first time or continuing their existing investments.
