Small Savings Scheme Interest Rates For July-September: Key Updates You Should Know

The small savings interest rate for the upcoming quarter (July-September 2026) is expected to be announced today. The government has kept the interest rates unchanged for some time for all small savings schemes. It changed the interest rates in some schemes last time in the fourth quarter of 2023-24. In December 2023, the government increased interest rates only for the ‘three-year time deposit’ from 7.00 per cent to 7.1 per cent and for Sukanya Samriddhi Yojana (SSY) from 8.0 per cent to 8.2 per cent.

At present, the Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) provide the highest interest rate, 8.2 per cent annually. However, these are specific to a certain category of investors (senior citizens and girl children).

Amid ongoing market volatility, for someone looking for secure and guaranteed income avenues, small savings could be considered. One can also allocate a portion of the portfolio to these schemes to ensure the stability of the corpus. This is particularly relevant for seniors or retirees, or those living on a fixed income, to ensure a predictable return.    

How Interest Rates Are Changed For Small Savings Schemes

The government reviews the interest rates for small savings schemes every quarter based on the formula recommended by the Shyamala Gopinath Committee. It considers the current economic environment, prevailing interest rates, government bond yields, and global factors like geopolitical conditions to determine the rates. Based on the formula, the interest rates for different schemes are set at around 25 to 100 basis points higher than the yields on the same maturity government bonds.

Small Saving Schemes Interest Rates For April-June 2026 Quarter

Schemes                                                      Interest Rates (%)

Savings Deposits                                         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                            6.7        

Senior Citizen Savings Scheme                 8.2

Monthly Income Account Scheme           7.4

National Savings Certificate                      7.7        

Public Provident Fund Scheme                7.1

Kisan Vikas Patra                                        7.5

Sukanya Samriddhi Account Scheme      8.2

Source: Ministry of Finance

For other investors, Public Provident Fund (PPF), National Savings Certificate (NSC), and Kisan Vikas Patra (KVP) are the instruments they check the interest rates to plan and invest for the long term.