Interest rates announced for SSY to PPF... How much will your money grow now?

Investors in government-backed small savings schemes have received an important update for the October-December 2026 quarter. The government has decided to keep interest rates unchanged across popular schemes including the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Post Office Monthly Income Scheme (MIS).

According to the Finance Ministry's Department of Economic Affairs notification dated September 30, 2026, the rates applicable from October 1 to December 31, 2026 will remain the same as those notified for the July-September 2026 quarter.

This means PPF investors will continue to receive 7.1%, while Sukanya Samriddhi and SCSS will continue to offer 8.2%. NSC remains at 7.7%, while the Post Office Monthly Income Scheme continues at 7.4%.

Small Savings Interest Rates for October-December 2026

Here are the rates applicable to major government-backed small savings schemes during the quarter:

Among these options, Sukanya Samriddhi Yojana and Senior Citizen Savings Scheme offer the highest listed rate at 8.2%, although the schemes serve different categories of investors and have different rules.

PPF Interest Rate Remains at 7.1%

There is no change in the Public Provident Fund interest rate for the October-December quarter. PPF will continue to offer 7.1% per annum.

PPF is primarily designed for long-term savings and has a maturity period of 15 years. Investors can make contributions within the limits prescribed under the scheme.

The scheme is particularly popular among people building a long-term retirement or financial corpus because of its government backing and tax treatment under applicable rules.

However, investors should remember that the government reviews small-savings interest rates every quarter. Therefore, the current 7.1% should not automatically be assumed to continue throughout the entire life of a PPF account.

Sukanya Samriddhi Continues to Offer 8.2%

Parents saving for their daughter's future will continue to receive an interest rate of 8.2% under the Sukanya Samriddhi Yojana during the October-December 2026 quarter.

The scheme allows a parent or guardian to open an account for an eligible girl child, subject to age and other conditions.

A maximum of ₹1.5 lakh can be deposited in a financial year. The long investment horizon and compounding can help parents create a sizeable fund for goals such as higher education.

For illustration, calculations based on a constant 8.2% rate indicate that investing the maximum ₹1.5 lakh annually for 15 years could potentially produce a corpus of around ₹71-72 lakh by the 21st year if the accumulated amount remains untouched. However, this is only an estimate because SSY rates can be revised in future quarters.

Senior Citizens Continue to Get 8.2% Under SCSS

The Senior Citizen Savings Scheme will also continue to offer an annual interest rate of 8.2%.

SCSS is aimed primarily at eligible senior citizens looking for regular income from their savings. Unlike a long-term accumulation product such as PPF, SCSS can be particularly relevant for retirees seeking periodic interest payments.

Interest under SCSS is generally paid quarterly according to the scheme rules.

For example, at an 8.2% annual rate, an investment of ₹10 lakh corresponds to annual interest of around ₹82,000 before applicable tax, or an average equivalent of about ₹6,833 per month. Actual payments follow the scheme's prescribed quarterly payout mechanism.

Tax treatment should also be considered because SCSS interest is taxable according to the investor's applicable tax rules.

NSC Rate Stays at 7.7%

The National Savings Certificate will continue to offer 7.7% during the October-December 2026 quarter.

NSC is another government-backed savings instrument generally used by investors looking for a fixed-term option.

Because the applicable rate is determined according to the terms of the scheme, investors should understand the investment tenure, tax treatment and withdrawal provisions before investing.

Post Office MIS Continues at 7.4%

The Post Office Monthly Income Scheme will continue to offer 7.4%.

MIS is designed for investors looking to generate periodic income from a lump-sum investment.

At an annual rate of 7.4%, a ₹9 lakh investment corresponds to annual interest of ₹66,600, or approximately ₹5,550 per month, subject to the scheme's applicable rules.

The actual amount an individual can invest depends on whether the account is held individually or jointly and the investment limits applicable at the time.

Kisan Vikas Patra Rate Remains at 7.5%

Kisan Vikas Patra will continue to offer an interest rate of 7.5%.

KVP is designed for investors who want a government-backed savings product and are prepared to remain invested for the prescribed period.

Its maturity period is linked to the notified interest rate, so investors should check the applicable maturity terms when purchasing a certificate.

Post Office Time Deposit Rates

Post Office Time Deposits also remain unchanged.

A one-year deposit offers 6.9%, while a two-year deposit provides 7%. The three-year Time Deposit carries a 7.1% rate, while the five-year option offers 7.5%.

The five-year Post Office Recurring Deposit, meanwhile, continues to offer 6.7%.

These options allow savers to select a tenure according to their financial requirements instead of committing to the much longer duration associated with schemes such as PPF.

Which Scheme Offers the Highest Interest Rate?

Based purely on the notified headline interest rates, SSY and SCSS are at the top of the current small-savings list with 8.2% each.

However, that does not mean they are interchangeable.

Sukanya Samriddhi is specifically designed for eligible girl children and long-term savings, while SCSS is primarily intended for eligible senior citizens.

NSC offers 7.7%, followed by the five-year Time Deposit and KVP at 7.5%. MIS provides 7.4%, while PPF and the three-year Time Deposit offer 7.1%.

Therefore, investors should not choose a scheme solely by comparing the highest interest rate. Eligibility, liquidity, maturity period, taxation and the purpose of the investment are equally important.

What the Government's Decision Means for Existing Investors

For investors who already have money in PPF, Sukanya Samriddhi and other applicable small-savings products, the latest announcement means there is no interest-rate change for the October-December 2026 quarter.

New investors entering schemes where the prevailing rate at account opening determines the applicable return should check the specific rules of that product.

Small-savings rates are reviewed quarterly by the government. Consequently, the next review will determine the rates applicable for the January-March 2027 quarter.

For now, PPF remains at 7.1%, NSC at 7.7%, MIS at 7.4%, KVP at 7.5%, while Sukanya Samriddhi and SCSS continue to offer the highest headline rate among the major schemes at 8.2%.