The small savings interest rates October–December 2026 are unchanged from the previous quarter for the Public Provident Fund (PPF), Sukanya Samriddhi Account (SSY), Senior Citizens’ Savings Scheme (SCSS), National Savings Certificate (NSC), post-office time deposits and other government-backed schemes. But an unchanged rate does not mean an unchanged backdrop: inflation has risen, and the Reserve Bank of India (RBI) raised its policy repo rate on 7 October.
So look beyond the headline rate to purchasing power, tax, lock-in and access.
Small savings interest rates October–December 2026: the full table
The Department of Economic Affairs (DEA), Ministry of Finance, issued Office Memorandum F.No.1/4/2019-NS on 30 September 2026. It said rates for the third quarter of FY2026–27 (1 October to 31 December 2026) “shall remain unchanged” from the second quarter. The Department of Posts circulated the decision to post offices through SB Order No. 12/2026 the same day. Both are reproduced in full by TaxGuru and StaffNews. You can also confirm the rates at any post office or on the DEA website.
| Scheme | Interest rate for Oct–Dec 2026 |
|---|---|
| Post-office savings deposit | 4.0% |
| 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 (RD) | 6.7% |
| Senior Citizens’ Savings Scheme (SCSS) | 8.2% |
| Monthly Income Scheme (MIS) | 7.4% |
| National Savings Certificate (NSC) | 7.7% |
| Public Provident Fund (PPF) | 7.1% |
| Kisan Vikas Patra (KVP) | 7.5% |
| Sukanya Samriddhi Account (SSY) | 8.2% |
These are annual rates, but schemes pay or compound differently. SCSS pays interest quarterly and MIS pays monthly. The Economic Times puts NSC maturity at ₹14,490 per ₹10,000 and quarterly SCSS interest at ₹205 per ₹10,000 (rate report).
The rates are unchanged from July–September (and from April–June). The last change applied to the January–March 2024 quarter: a DEA memorandum dated 29 December 2023 raised the Sukanya Samriddhi rate from 8.0% to 8.2% and the three-year time deposit rate from 7.0% to 7.1% (Department of Economic Affairs memorandum, Q4 FY2023–24). According to PTI, rates have not been changed since then.
Why the RBI’s rate hike did not change small savings rates
On 7 October 2026, the RBI’s Monetary Policy Committee voted unanimously, 6–0, to raise the policy repo rate by 25 basis points, from 5.25% to 5.50%. It also changed its stance from neutral to “calibrated tightening” (MPC resolution; Governor’s statement). The RBI said the new stance signals that “rate cuts are off the table in the near term and policy action ahead can only be a rate hike or a pause.”
The repo rate does not automatically reset every deposit rate. Small savings rates are reviewed quarterly by the government, which left October–December rates unchanged.
The RBI projected FY2026–27 real GDP growth of 7.1% and CPI inflation of 5.2%, and said it expected inflation to average “almost 5.8 per cent in the next three quarters.” These are projections, not guarantees.
What about the Gopinath formula and bond yields?
A committee chaired by Shyamala Gopinath recommended linking small savings rates to government bond yields. As the Economic Times notes, the Finance Ministry is not bound by the formula. It also reported that the 10-year government bond yield rose above 7% during July–September, and Upstox reported that it touched a 52-week high of 7.25% during trading on 7 October. These are market reports, not official RBI figures.
A higher repo rate or bond yield does not guarantee a small-savings increase in the same quarter.
Real returns on small savings: what remains after inflation?
The latest available CPI figure is for August 2026: inflation was 4.82% (provisional, on the new 2024=100 base), up from 4.45% in July, while food inflation was 5.95% (August CPI release).
The table subtracts August’s 4.82% CPI inflation from each listed rate. This is a simple comparison, not a guaranteed return or a measure of every household’s costs. September CPI data is expected around 12 October, so the table may need updating.
| Scheme | Listed rate | Rate minus August CPI of 4.82% (percentage points) |
|---|---|---|
| Savings deposit | 4.0% | -0.82 |
| 1-year time deposit | 6.9% | 2.08 |
| 2-year time deposit | 7.0% | 2.18 |
| 3-year time deposit | 7.1% | 2.28 |
| 5-year time deposit | 7.5% | 2.68 |
| 5-year RD | 6.7% | 1.88 |
| SCSS | 8.2% | 3.38 |
| MIS | 7.4% | 2.58 |
| NSC | 7.7% | 2.88 |
| PPF | 7.1% | 2.28 |
| KVP | 7.5% | 2.68 |
| SSY | 8.2% | 3.38 |
A positive difference is not the same as a spendable, guaranteed return. Tax, payment timing, access restrictions and household-specific costs can change the outcome.
Post-tax returns: do not compare headline rates alone
The highest advertised rate is not automatically the best after-tax choice. Tax treatment depends on the scheme, your income and the tax regime you use, so this article does not give a post-tax rate table.
One change matters for anyone using older guides. From 1 April 2026, the Income-tax Act, 2025 replaced the 1961 Act, and the familiar ₹1.5 lakh investment deduction (previously Section 80C) now sits in section 123, read with Schedule XV. Schedule XV specifically lists deposits under the Senior Citizens’ Savings Scheme and five-year post-office time deposits. It also covers contributions to a centrally notified provident fund, notified savings certificates and notified deposit schemes for a girl child, the categories under which PPF, NSC and SSY have traditionally qualified. The deduction is generally not available under the default new tax regime. Schedule XV also says that if SCSS or five-year time deposit money is withdrawn within five years, the amount can be taxed in the year of withdrawal.
How the interest is taxed is a separate question from the deduction for the deposit, and it differs by scheme: interest on some schemes is taxable each year and may be subject to tax deduction at source (TDS), while others are treated differently. Check the current rules for each scheme on the Income Tax Department’s website or with a tax professional before comparing returns.
Fixed for the tenure or reset quarterly?
For NSC, SCSS, post-office time deposits and KVP, the rate in force when you invest applies for the whole tenure. PPF and SSY rates are reviewed quarterly and can change for subsequent periods.
| Your priority | What to consider |
|---|---|
| Certainty over a defined tenure | A fixed-rate product such as an eligible time deposit or NSC may make planning easier |
| Long-term saving with future rate reviews | PPF and SSY rates may reset quarterly |
| Regular retirement income | Compare SCSS and MIS payment patterns and conditions |
| Keeping access to cash | Check lock-in, premature closure and withdrawal rules before committing money |
A fixed rate helps with planning but can reduce flexibility if you need money early. A resetting rate can move up or down at a later review.
Small savings versus bank FDs after the 7 October rate hike
A repo rate hike does not automatically lift bank deposit rates. On 8 October, the day after the policy, SBI Chairman C. S. Setty told reporters that “next two-three months, there may not be any rate action on the deposits because we have sufficient liquidity in the system,” according to PTI, as reported by Upstox on 9 October. This is a statement of expectation, not a commitment.
Some NBFCs moved sooner. The Economic Times reported that Bajaj Finance raised FD rates by 15–40 basis points from 7 October, to up to 7.75% for regular depositors and 8.15% for senior citizens on 31–60-month tenures (report). FD rates change often, so confirm current rates directly with the institution.
Check tenure and eligibility before comparing these figures; senior-citizen rates are not available to every depositor. NBFC fixed deposits are not covered by DICGC deposit insurance. Compare the effective rate, payment frequency, early-withdrawal terms, tax treatment, institution risk and deposit protection—not just the advertised percentage.
Which scheme fits your goal?
These pairings show how scheme features match common goals. They are illustrations, not recommendations.
For retirement income: Compare SCSS (8.2%) with MIS (7.4%) on eligibility, limits, payment frequency and withdrawal rules. Financial Express reports an SCSS limit of ₹30 lakh and MIS limits of ₹9 lakh (single account) and ₹15 lakh (joint account); confirm current rules in its scheme overview.
For a daughter’s education: SSY is listed at 8.2%; check eligibility, contribution conditions and withdrawal timing.
For long-term saving: PPF is listed at 7.1%, with a reported annual deposit limit of ₹1.5 lakh; review tenure, contributions, withdrawals and tax treatment.
For a fixed-term certificate: NSC is listed at 7.7%; understand maturity and tax treatment first.
For a lump sum: KVP is listed at 7.5% and matures in 115 months; check purchase and early-access conditions.
For regular instalments: The five-year RD is listed at 6.7%; make sure the instalment fits your budget.
A checklist before investing this quarter
- Name the goal: emergency cash, retirement income or education savings.
- Check access rules: tenure, maturity and premature closure.
- Check the rate and limits: use current scheme material and confirm eligibility.
- Confirm tax treatment: compare likely after-tax outcomes under your regime.
- Compare like with like: tenure, payment frequency, tax and deposit protection.
- Keep records current: KYC and nomination details.
- Keep emergency cash accessible: do not lock away money you may need soon.
Frequently asked questions
Will the PPF rate change on 1 January 2027?
It may or may not. The rate for January–March 2027 will be set at the next quarterly review, for which the government has not announced a date. This quarter’s decision was announced on 30 September, the day before the quarter began. Until a new notification is issued, the PPF interest rate stays at 7.1%.
Are small savings rates higher after the RBI repo hike?
No. Rates remain unchanged for October–December despite the repo rate rising to 5.50%.
Is SCSS better than a bank FD?
Not for everyone. SCSS is listed at 8.2%, but eligibility, limits, payment pattern, access and tax treatment matter. Compare actual terms.
Should I wait for banks to increase FD rates?
This article cannot answer that for you. SBI’s chairman said on 8 October that he did not expect deposit rate action for two to three months, while some NBFCs such as Bajaj Finance raised FD rates soon after the policy. Any comparison should cover the current rate, deposit protection and institution risk.
Are NBFC fixed deposits insured like bank deposits?
No. NBFC FDs are not covered by DICGC deposit insurance.
The bottom line
The small savings interest rates October–December 2026 remain unchanged after the RBI raised the repo rate to 5.50%. SCSS and SSY lead at 8.2%, NSC is at 7.7% and PPF at 7.1%. Which scheme suits a saver depends on inflation, tax, eligibility, payment frequency, tenure and access.
Use the August CPI figure of 4.82% as a provisional comparison, revisit it after the scheduled September CPI release, and check current scheme and tax rules before investing.
Disclaimer: This article is for educational purposes only and is not investment advice. Small savings interest rates are subject to quarterly revision by the Government of India. Please consult a SEBI-registered investment adviser or a qualified tax professional before making investment or tax decisions.