Small savings rates are frozen for a tenth straight quarter. With repo rates rising, that could change.
On 30 September 2026, the Finance Ministry announced that small savings rates would stay unchanged for October to December 2026. It is the tenth consecutive quarter without a change.
So PPF still pays 7.1%. The Senior Citizens' Savings Scheme and Sukanya Samriddhi Yojana still pay 8.2%, the highest of the lot. NSC pays 7.7% and Kisan Vikas Patra 7.5%. The full list, with what each pays on ₹1 lakh, is on our small savings rates page.
Why this quarter is worth watching
A week after the announcement, the RBI raised the repo rate for the first time since 2023, to 5.50%. Small savings rates are not tied directly to the repo rate. The government sets them using a formula linked to government bond yields, plus its own judgement. But when the RBI starts raising rates, bond yields tend to rise too, and that builds pressure for higher small savings rates.
Nobody can promise a change at the next review, due around 31 December 2026. But the direction of travel has shifted for the first time in years.
Locked or floating: the detail most people miss
This matters more than the headline rate.
Locked at the rate you invest at: NSC, KVP, SCSS, post office time deposits and the Monthly Income Scheme. Whatever the rate is on the day you invest, you keep it for the full term.
Floating with every quarter: PPF and Sukanya Samriddhi. The new rate applies to your whole balance from the day it takes effect.
That difference shapes your timing. If you expect rates to rise, there is no reason to rush into a locked scheme, because you might get a better rate in a few months. PPF and SSY are different: you benefit from any increase automatically, so there is nothing to wait for.
If you expect rates to fall, it is the reverse. Locking in 8.2% on SCSS for five years looks very good.
Which scheme fits whom
If you are 60 or older: SCSS at 8.2%, paid every quarter, is hard to beat for regular income. The maximum is ₹30 lakh per person. The interest is taxable.
If you have a daughter under 10: Sukanya Samriddhi at 8.2%, with tax-free interest and maturity, is one of the best fixed-income products in the country.
If you want long-term, tax-free savings: PPF at 7.1% is tax-free at every stage. Over 15 years, that tax-free status is worth more than it looks next to a taxable 7.5% or 7.7%.
If you want a fixed five-year return: NSC at 7.7%, locked for five years. Compare it with bank FDs, which are likely to move up after the repo rate increase.
The tax-regime catch
Several of these schemes are sold on their 80C benefit. That deduction exists only in the old tax regime. If you are in the new regime, and most salaried people are better off there, the 80C label is irrelevant. Judge each scheme on its rate, its lock-in and how its interest is taxed. Not sure which regime you should be in? The break-even guide explains how to tell.
We will update this page the day the January to March 2027 rates are announced.
For education only. Not investment, tax or legal advice. See our disclaimer.