Small savings rates unchanged for July–September 2026: PPF stays at 7.1%, SCSS and SSY at 8.2%

The Department of Economic Affairs, Ministry of Finance, announced on 30 June 2026 that interest rates on all small savings schemes will remain unchanged for the second quarter of FY 2026-27 (1 July 2026 to 30 September 2026). Rates are identical to those in effect for Q1 FY27 (April–June 2026).

Q2 FY27 rates at a glance

Scheme	Annual rate	Interest paid
Public Provident Fund (PPF)	7.1%	Annually (compounded)
Senior Citizen Savings Scheme (SCSS)	8.2%	Quarterly
Sukanya Samriddhi Yojana (SSY)	8.2%	Annually (compounded)
National Savings Certificate (NSC)	7.7%	At maturity (5 yr)
Post Office Monthly Income Scheme (POMIS)	7.4%	Monthly
Kisan Vikas Patra (KVP)	7.5%	At maturity (115 months)

Source: Ministry of Finance, Department of Economic Affairs circular dated 30 June 2026.

What this means for investors

No action needed for existing accounts. Your PPF, SCSS, or SSY account will continue earning the same rate — no reinvestment or paperwork is required.

SCSS and SSY remain the best guaranteed returns in the small savings basket at 8.2%. SCSS is open to individuals aged 60+ (or 55+ under VRS), while SSY is available for girl children up to age 10.

PPF at 7.1% continues to offer tax-free compounding under the EEE regime — exempt at contribution, accumulation, and withdrawal stages — making its effective post-tax return higher than the headline rate for taxpayers in the 20–30% bracket.

RBI’s rate cycle is the key watch. The government sets small savings rates in line with a formula tied to benchmark G-sec yields. With the RBI having cut the repo rate in 2025–26, small savings rates have broadly plateaued. Any further repo rate cuts could eventually pull these rates lower in future quarters.

Use the FD and savings calculators on Vibefeed to compare post-tax returns across PPF, SCSS, and bank FDs before deciding where to deploy fresh savings this quarter.