PPF, Sukanya Samriddhi, NSC Rates for October-December 2026: All Unchanged Again, With Examples
The government has kept small savings rates the same for the tenth quarter in a row, even after the RBI raised its repo rate. Here is the full list and what your money could grow to.
If you save through the post office or a bank in PPF, Sukanya Samriddhi or other small savings schemes, here is the short answer for this quarter: nothing has changed. The finance ministry has kept the interest rates for October 1 to December 31, 2026 at the same levels as the previous quarter. According to Outlook Money, it is the tenth quarter in a row without a change.
The decision came even though the Reserve Bank of India raised its repo rate to 5.5% in early October. Here is the full list, what the rates mean in rupees, and how they compare with bank deposits.
Quick answer
- PPF: 7.1%
- Sukanya Samriddhi Yojana (SSY): 8.2%
- Senior Citizens' Savings Scheme (SCSS): 8.2%
- National Savings Certificate (NSC): 7.7%
- Kisan Vikas Patra (KVP): 7.5% (money doubles in 115 months)
- Monthly Income Scheme (MIS): 7.4%
- The rates apply from October 1 to December 31, 2026, and can be revised from January 1, 2027.
The full rate list
For October to December 2026:
- Post office savings account: 4%
- 1-year time deposit: 6.9%
- 2-year time deposit: 7.0%
- 3-year time deposit: 7.1%
- 5-year time deposit: 7.5%
- 5-year recurring deposit: 6.7%
- Monthly Income Scheme: 7.4%
- Senior Citizens' Savings Scheme: 8.2%
- National Savings Certificate: 7.7%
- Kisan Vikas Patra: 7.5%
- Public Provident Fund: 7.1%
- Sukanya Samriddhi Yojana: 8.2%
What these rates mean in rupees
These are simple illustrations, worked out by us assuming the current rate stays the same for the whole period. Actual returns depend on scheme rules and future rate changes.
- PPF: depositing the maximum ₹1.5 lakh every year for 15 years at 7.1% could grow to about ₹40.7 lakh, all of it tax-free.
- Sukanya Samriddhi: ₹1.5 lakh a year for the 15 deposit years, left to mature when the girl turns 21, could grow to roughly ₹70 lakh at 8.2%.
- NSC: ₹2 lakh invested today at 7.7% becomes about ₹2.9 lakh after five years.
- SCSS: ₹30 lakh, the maximum, earns ₹61,500 every quarter at 8.2%.
- MIS: ₹9 lakh in a single account pays about ₹5,550 a month at 7.4%.
- KVP: whatever you invest doubles in 115 months, a little under ten years.
Why rates did not rise
Small savings rates are meant to follow the yields on government bonds of similar length, with a small margin added. Bond yields have risen with inflation, so some experts had expected an increase. The government chose to hold rates for now. Because the rates are reviewed every quarter, a change is still possible from January.
Small savings or bank FD?
After the RBI's rate hike, many savers are asking whether banks will now offer more on fixed deposits. SBI's chairman, C. S. Setty, said he does not expect deposit rates to change for the next two or three months, because banks have plenty of money, according to Upstox. Some non-bank lenders have raised their rates, but bank FD rates for most savers remain below the best small savings schemes.
Small savings schemes have two big advantages: they are backed by the Government of India, and some offer tax benefits. Bank FDs are more flexible, with many tenures and easy premature withdrawal.
Tax at a glance
- PPF and SSY: the deposit qualifies for a deduction under Section 80C (in the old tax regime), and both the interest and the maturity amount are tax-free.
- NSC, SCSS and the 5-year time deposit: deposits qualify for 80C in the old regime, but the interest is taxable.
- MIS, KVP and other time deposits: interest is taxable.
If you use the new tax regime, the 80C deduction does not apply, but PPF and SSY interest remains tax-free.
Which scheme suits whom?
- Saving for a daughter's future: Sukanya Samriddhi, for girls below 10 years.
- Long-term, tax-free savings: PPF, which runs for 15 years and can be extended.
- Retired and need regular income: SCSS, which pays interest every quarter.
- Monthly income from a lump sum: MIS.
- Fixed, safe growth over five years: NSC or the 5-year time deposit.
Things to keep in mind
- Deposit in PPF and SSY before the 5th of the month to earn interest for that month.
- Keep your nominee details updated.
- Rates are fixed at the time you invest for NSC, KVP, SCSS and time deposits, but PPF and SSY rates change every quarter for the whole balance.
For more on how rates are moving, read about the RBI's repo rate hike and what you can expect from bank FDs.
This article is for information only and is not investment advice.
Related reading
Sources
This article draws on the following reporting. Dates are when each source was originally published.
Written by
Stories, explainers and features published by The Daily, based on public sources that are listed with every article.
More from The Daily →Enjoyed this story?
Get the best of The Daily in your inbox every Sunday.
