The government has kept interest rates on small savings schemes unchanged for October to December 2026, the 10th straight quarter without a change, as Outlook Money and Angel One reported. PPF stays at 7.10%, the Sukanya Samriddhi Yojana and Senior Citizens Savings Scheme at 8.20%, and NSC at 7.70%. The rates for January to March 2027 are due around 31 December 2026. Here is the full list, what each rate means in rupees, and how these returns compare with the cost of carrying debt.
Short answer: Small savings rates for Q3 FY27 are unchanged: SSY and SCSS 8.20%, NSC 7.70%, KVP and 5-year TD 7.50%, MIS 7.40%, PPF 7.10%, and the post office savings account 4.00%. Most of these are above September’s 5.54% CPI inflation, giving a modest positive real return with government backing. But if you carry high-cost debt such as credit card dues or app loans, paying that off usually beats any of these rates.
Full list of rates, October to December 2026
| Scheme | Rate (per year) | Note |
|---|---|---|
| Sukanya Samriddhi Yojana (SSY) | 8.20% | For a girl child’s account |
| Senior Citizens Savings Scheme (SCSS) | 8.20% | Interest paid quarterly |
| National Savings Certificate (NSC) | 7.70% | Five-year certificate |
| Kisan Vikas Patra (KVP) | 7.50% | Matures in 115 months |
| 5-year Post Office Time Deposit | 7.50% | |
| Monthly Income Scheme (MIS) | 7.40% | Interest paid monthly |
| Public Provident Fund (PPF) | 7.10% | 15-year account |
| Post office savings account | 4.00% |
What the rates mean in rupees
These worked examples assume the current rates hold for the whole period, which is not guaranteed, since rates are reviewed every quarter (fixed-tenure certificates and deposits generally lock in the rate at the time you invest, while PPF and SSY rates can change during the account’s life).
- PPF: Rs 1,50,000 deposited at the start of each year for 15 years at 7.10%, compounded annually, grows to about Rs 40,68,209 against Rs 22,50,000 invested.
- NSC: Rs 1,00,000 at 7.70% compounded annually for five years matures at about Rs 1,44,903.
- KVP: money doubles in 115 months. That works out to an annual compound rate of about 7.50%, consistent with the stated 7.50%.
- SCSS: Rs 10,00,000 at 8.20% pays about Rs 20,500 every quarter.
- MIS: Rs 5,00,000 at 7.40% pays about Rs 3,083 a month.
Real returns after inflation
September’s CPI inflation was 5.54%, according to MoSPI. At that rate, PPF’s 7.10% is a real return of about 1.48%, while the 4.00% savings account loses purchasing power. The RBI projects inflation at 6.0% for October to December, so real returns may narrow further in the near term. Small savings schemes are about safety and predictability more than high returns.
Save or repay? Compare with the cost of your debt
A rupee saved at 7.50% earns 7.50% before tax. A rupee used to repay a loan at 16% saves 16%, with no risk. On an illustrative Rs 1,00,000, a year in a 7.50% deposit earns about Rs 7,500, while the same money used to clear a 16% loan saves about Rs 16,000 in interest over the year (simplified; actual savings depend on how the loan is structured).
| Use of Rs 1,00,000 for one year | Approximate gain or saving |
|---|---|
| Post office savings account (4.00%) | Rs 4,000 |
| PPF (7.10%) | Rs 7,100 |
| SCSS or SSY (8.20%) | Rs 8,200 |
| Repay an illustrative 16% loan | Rs 16,000 saved |
| Repay an illustrative 36% credit card balance | Rs 36,000 saved |
The order for most households is: keep an emergency fund in a liquid, accessible place; clear high-cost debt; then build long-term savings in schemes like PPF, SSY or NSC. Our emergency fund guide covers the first step, and if you are juggling several loans, should I consolidate my loans helps with the second.
See how much interest your current EMIs are really costing you.
A worked plan for a Rs 20,000 monthly surplus
Consider an illustrative salaried earner with monthly expenses of Rs 40,000, a card balance of Rs 60,000 left over from the festive season, no emergency fund, and Rs 20,000 a month to spare after EMIs.
- Months 1 to 3: clear the card. At Rs 20,000 a month the Rs 60,000 balance is gone in about 3 months (a little longer once interest is counted). Nothing on the rate list above beats the interest saved here.
- Next 8 months: build the emergency fund. Four months of expenses is Rs 1,60,000, which takes about 8 months at Rs 20,000 a month. A savings account or sweep FD keeps it reachable.
- After that: long-term savings. Splitting the surplus, for example Rs 10,000 a month to PPF and the rest to other goals, starts compounding with the debt and safety net already handled.
The exact numbers will differ for every household, but the sequence holds: the guaranteed saving from clearing expensive debt comes first, then liquidity, then returns.
Which scheme suits whom
- Parents of a girl child: SSY offers the highest rate in the list, at 8.20%.
- Retirees seeking regular income: SCSS at 8.20% with quarterly interest, or MIS at 7.40% with monthly interest.
- Long-term, low-risk savers: PPF, with a 15-year horizon.
- Fixed-tenure savers: NSC or the 5-year TD, which lock the rate for the term.
- Those who want a known doubling period: KVP, at 115 months.
Tax treatment differs by scheme and by the tax regime you choose, so check how each one is taxed for you before investing. Under the Income-tax Act, 2025, “tax year” has replaced “assessment year” in the law’s wording.
A practical point: small savings schemes are offered through post offices and through banks authorised to run them, and many can now be opened or topped up online through your bank. Before you invest, check the lock-in, the rules for premature withdrawal and whether the interest is paid out or compounded, because those features matter as much as the headline rate when you might need the money early.
What to watch next
Rates for January to March 2027 are due around 31 December 2026. With the RBI having raised the repo rate to 5.50% in October and inflation rising, the next review will be watched closely, but no change is certain either way. If you are choosing between a deposit and paying down a loan, compare lenders and the full cost of any refinancing in our lender directory.
Frequently asked questions
What is the PPF interest rate for October to December 2026?
7.10% a year, unchanged from the previous quarter.
Which small savings scheme has the highest rate now?
Sukanya Samriddhi Yojana and the Senior Citizens Savings Scheme, both at 8.20%.
How long does KVP take to double my money?
115 months at the current 7.50% rate.
When will the January to March 2027 rates be announced?
They are due around 31 December 2026.
Should I invest in PPF or repay my personal loan?
If the loan rate is well above PPF’s 7.10%, repaying usually saves more, with no risk. Keep an emergency fund first, then clear high-cost debt, then build long-term savings.
Reviewed by the FundsTiger Credit Expert Team.
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.