The government has kept small savings interest rates unchanged for the October-December 2026 quarter (Q3 FY27), according to the Department of Economic Affairs. PPF stays at 7.1%, the Sukanya Samriddhi Yojana at 8.2% and the National Savings Certificate at 7.7%. Reports on the announcement appeared on September 30, 2026.
The decision comes as retail inflation rose to 4.82% in August, an eight-month high, and economists polled by Business Standard expect the RBI to raise the repo rate by 0.25% at its October policy review. Small savings rates are reset quarterly by the Finance Ministry.
What Are the Small Savings Interest Rates for Q3 FY27?
As reported by Business Today, the rates for October-December 2026 are: Sukanya Samriddhi Yojana 8.2%, Senior Citizens Savings Scheme 8.2%, National Savings Certificate 7.7%, Kisan Vikas Patra 7.5%, five-year post office time deposit 7.5%, Monthly Income Scheme 7.4% and Public Provident Fund 7.1%. The department noted that rates on most schemes have stayed unchanged since the January-March quarter of FY2023-24, with the last adjustment in April 2024 when PPF and Sukanya rates were raised, according to the same report. Outlets differ on how many consecutive quarters the rates have been held, so that count is not used here.
What Does This Mean for Savers and Retirees?
Savers in the Senior Citizens Savings Scheme and Sukanya Samriddhi continue to earn the highest guaranteed rates in the basket at 8.2%. Because rates are fixed for the quarter, existing and new investors get the same returns through December 31, 2026. With inflation edging up, real returns on these schemes are narrower than a few months ago, though still positive on the reported 4.82% CPI print.
Market and Trade Reaction
No separate market reaction was found. The unchanged rates matter mostly for banks competing for deposits: if the RBI raises the repo rate, bank fixed-deposit rates could rise relative to administered small savings rates.
What Happens Next?
The next quarterly reset covers January-March 2027 and is usually announced near the end of December. Savers should watch the RBI’s October policy outcome and the September CPI print, both of which feed into the Finance Ministry’s rate review.
Frequently Asked Questions
What is the PPF interest rate for October-December 2026?
The Public Provident Fund rate stays at 7.1% for the quarter, unchanged from the previous quarter.
Which small savings scheme gives the highest rate?
The Sukanya Samriddhi Yojana and the Senior Citizens Savings Scheme both offer 8.2%, the highest in the basket.
Who decides small savings rates?
The Department of Economic Affairs in the Finance Ministry notifies the rates every quarter.
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