NEW DELHI, October 4 — The Ministry of Finance has announced that interest rates on various small savings schemes will remain unchanged for the third quarter of Financial Year 2026–27, covering the period from October 1 to December 31, 2026.
According to the official circular issued by the Department of Economic Affairs, the Sukanya Samriddhi Yojana (SSY) and Senior Citizen Savings Scheme (SCSS) continue to offer the highest return at 8.2% per annum. The Public Provident Fund (PPF) remains pegged at 7.1%, while National Savings Certificate (NSC) yields 7.7%, Kisan Vikas Patra (KVP) pays 7.5% with a 115-month maturity tenure, and the Post Office Monthly Income Scheme (POMIS) stands at 7.4%.
Economists observe that holding rates steady provides predictability to retail depositors and senior citizens seeking safe yields, while maintaining a robust domestic savings channel for funding public capital expenditure without exerting upward pressure on sovereign bond yields. Small savings interest rates are reviewed quarterly using a formula benchmarked to secondary market yields on Central Government Securities (G-Secs).
Administered interest rates, domestic savings mobilization, and fiscal policy instruments are foundational topics in UPSC, RBI Grade B, and banking examinations. Candidates should remember that the current quarterly review mechanism for small savings schemes was formulated following the recommendations of the Shyamala Gopinath Committee in 2011.