Govt holds rates for small savings

The Government on Tuesday left interest rates unchanged for various small savings schemes, including Public Provident Fund (PPF) and National Savings Certificate (NSC), for the ninth straight quarter, beginning July 1, 2026. “The rates of interest on various small savings schemes for the second quarter of FY 2026-27, starting from July 1, 2026, and ending on September 30, 2026, shall remain unchanged from those notified for the first quarter (March 1, 2026, to June 30, 2026) of FY 2026-27,” the Finance Ministry said in a notification. As per the notification, deposits under the Sukanya Samriddhi Scheme will attract an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains at 7.1 per cent in the current quarter.

The interest rates for PPF and post office savings deposit schemes have been retained at 7.1 per cent and 4 per cent, respectively.

The interest rate on the Kisan Vikas Patra will be 7.5 per cent, and the investments will mature in 115 months. The interest rate on the NSC will stay at 7.7 per cent for the July-September quarter.

Like the current quarter, the monthly income scheme will earn 7.4 per cent for investors in the second quarter as well. With this, the interest rates on small savings schemes, mainly operated by post offices and banks, have been left unchanged for the ninth consecutive quarter. The Government last changed the interest rate on some schemes in the fourth quarter of 2023-24.

Small savings schemes such as the PPF, NSC, Kisan Vikas Patra, Sukanya Samriddhi Yojana, Senior Citizen Savings Scheme, and Recurring Deposit remain popular among risk-averse investors. The Government reviews the interest rates on these schemes every quarter.