Summary of this article
The government kept the small savings interest rates unchanged for July–September 2026.
These rates were last tweaked in Q4 2023-24.
Currently they offer up to 8.2 per cent on SCSS and Sukanya Samriddhi.
The small savings interest rates for the upcoming quarter (July-September 2026) remain unchanged. According to the notification released by the Department of Economic Affairs under the Ministry of Finance on June 30, 2026, "The rates of interest on various Small Savings Schemes for the second quarter of FY 2026-27 starting from 1st July, 2026 and ending on 30th September, 2026 shall remain unchanged from those notified for the first quarter (1st April, 2026 to 30th June, 2026) of FY 2026-27."
Notably, the government has kept the interest rates intact for all small savings schemes for a consecutive 10th quarter. The interest rates were changed last time in the fourth quarter of 2023-24. It was in December 2023, when the government increased interest rates 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.
Following no change in the rates, the Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) will will continue to offer the highest interest rate of 8.2 per cent annually. These schemes are meant for specific categories of investors: senior citizens and girl children, respectively.
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 July-September 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.
