The Finance Ministry has retained the existing interest rates on all small savings schemes for the third quarter of FY2026-27, covering October 1 to December 31, providing continuity for investors in instruments such as PPF, Sukanya Samriddhi Yojana and NSC.
New Delhi, September 30: The Ministry of Finance on Wednesday announced that interest rates on small savings schemes will remain unchanged for the third quarter of the financial year 2026-27, covering the period from October 1 to December 31.
In an official notification, the ministry said the rates applicable to various government-backed small savings schemes during the October-December quarter will remain at the levels notified for the preceding July-September quarter.
The decision provides continuity for millions of depositors who rely on small savings instruments for relatively stable and predictable returns. Among the widely used schemes covered by the existing rate structure are the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Savings Certificate (NSC).
Under the current rates, PPF deposits will continue to earn 7.1 per cent annual interest. The Sukanya Samriddhi Yojana, which is designed to encourage long-term savings for the girl child, will continue to offer 8.2 per cent interest. Investments in the National Savings Certificate will continue to earn 7.7 per cent annually.
Small savings schemes remain an important component of household financial planning, particularly for retail investors seeking government-backed instruments with defined returns. The interest rates are reviewed by the government every quarter, making each revision closely watched by depositors and prospective investors.
The decision to retain the existing rates means savers will not see any change in the applicable returns for the October-December period. It also provides greater predictability to households planning their savings and investment decisions for the coming quarter.
The quarterly interest-rate review applies to fresh investments made during the relevant period, while existing deposits continue to be governed by the respective rules and terms of the individual schemes.
The unchanged rates also mean that investors considering PPF, SSY, NSC and other notified small savings instruments will continue to operate under the same return structure that was applicable during the July-September quarter.
Small savings schemes include a range of government-backed instruments designed to meet different savings needs, from long-term retirement-oriented savings to targeted schemes for children and fixed-tenure investments.
The Finance Ministry's notification confirmed that there would be no change in small savings interest rates for the third quarter of FY2026-27. However, the notification itself did not provide a detailed scheme-wise table of the applicable rates.
For investors, the continuation of the existing rates removes uncertainty over returns for the October-December quarter and maintains the prevailing structure of government-backed savings products.
The move comes amid changing interest-rate conditions and continued attention on returns available through various savings and investment avenues. By retaining the existing rates, the government has opted for stability in the small savings segment for another quarter.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
