PPF Interest Rate for October–December 2026: Full List of Small Savings Scheme Rates
The PPF interest rate stays at 7.1% a year for the October–December 2026 quarter. The Ministry of Finance kept rates on all small savings schemes unchanged on September 30, 2026, so Sukanya Samriddhi Yojana (SSY) and the Senior Citizens Savings Scheme (SCSS) continue at 8.2%, and the National Savings Certificate (NSC) at 7.7%. The rates apply from October 1 to December 31, 2026.
The decision came just a week before the RBI raised the repo rate, so many savers are asking: do these government schemes still make sense when bank FD rates may rise? Here's the full rate list, the tax angle that's often missed, and a simple comparison.
Key Takeaways
- PPF: 7.1%, unchanged for the October–December 2026 quarter.
- SSY and SCSS: 8.2%, the highest among small savings schemes.
- Rates are reviewed every quarter; the next review is due before January 1, 2027.
- PPF and SSY interest is tax-free, so 7.1% tax-free is equivalent to about 10.1% taxable for someone in the 30% slab.
- ₹1.5 lakh a year in PPF for 15 years at 7.1% would grow to about ₹40.7 lakh, if the rate stayed the same (GoPocket calculation).
Small Savings Scheme Interest Rates: October–December 2026
| Scheme | Interest rate (p.a.) | Tenure |
|---|---|---|
| Sukanya Samriddhi Yojana (SSY) | 8.2% | 21 years |
| Senior Citizens Savings Scheme (SCSS) | 8.2% | 5 years |
| National Savings Certificate (NSC) | 7.7% | 5 years |
| Kisan Vikas Patra (KVP) | 7.5% | Matures in 115 months |
| 5-year Post Office Time Deposit | 7.5% | 5 years |
| Post Office Monthly Income Scheme (MIS) | 7.4% | 5 years |
| Public Provident Fund (PPF) | 7.1% | 15 years |
| 3-year Post Office Time Deposit | 7.1% | 3 years |
| 2-year Post Office Time Deposit | 7.0% | 2 years |
| 1-year Post Office Time Deposit | 6.9% | 1 year |
| 5-year Recurring Deposit | 6.7% | 5 years |
| Post Office Savings Account | 4.0% | — |
Source: Department of Economic Affairs, Ministry of Finance, as reported by Business Today and Outlook Money, September 30, 2026.
How Are Small Savings Rates Decided?
The government reviews small savings rates every quarter. In principle, they're linked to yields on government securities of similar maturity, plus a spread. For example, SSY is benchmarked to long-term government bond yields with a spread of 75 basis points, according to Business Today. In practice, the government has discretion and has kept rates steady for several quarters.
The PPF rate has stayed at 7.1% for 25 consecutive quarters, Business Today reported. Government bond yields have been rising, and some analysts expected an increase this time, but the rates were left unchanged.
Why Is 7.1% PPF Better Than It Looks? The Tax Effect
PPF and SSY have "EEE" status. That means deposits qualify for a deduction under Section 80C (old tax regime), the yearly interest is tax-free, and the maturity amount is tax-free. Bank FD interest, SCSS interest and NSC interest are taxable at your slab rate.
To compare fairly, convert the tax-free rate into a taxable-equivalent yield, the pre-tax rate a taxable investment must pay to leave you with the same amount after tax. GoPocket's calculation (excluding cess):
| Your tax slab | PPF at 7.1% tax-free equals a taxable rate of | SCSS at 8.2% after tax |
|---|---|---|
| 0% | 7.10% | 8.20% |
| 20% | 8.88% | 6.56% |
| 30% | 10.14% | 5.74% |
Method: taxable-equivalent rate = tax-free rate ÷ (1 − tax rate). After-tax rate = taxable rate × (1 − tax rate).
So for someone in the 30% bracket, PPF's 7.1% does the work of a 10.1% taxable deposit. For a retiree with income below the taxable limit, SCSS's 8.2% stays fully intact. The right choice depends on your slab, not just the headline rate.
How Much Can PPF Grow in 15 Years?
Suppose you invest the maximum ₹1.5 lakh at the start of each financial year for 15 years, and the rate stays at 7.1% throughout. GoPocket's calculation, with interest compounded yearly:
- Total invested: ₹22.5 lakh
- Estimated maturity value: about ₹40.68 lakh
- Estimated interest earned: about ₹18.18 lakh, all tax-free
This is an illustration only. The PPF rate is revised quarterly, so actual returns will differ. Depositing before the 5th of a month earns interest for that month.
Small Savings vs Bank FDs After the RBI Rate Hike
The RBI raised the repo rate by 25 basis points to 5.50% on October 7, 2026. Banks may lift FD rates gradually, as explained in our FD rates after the RBI repo rate hike guide. Here's how the two compare:
- Safety: Small savings schemes carry a sovereign guarantee. Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank.
- Rate certainty: A bank FD locks in its rate for the full tenure. NSC, KVP, SCSS and time deposits also lock in the rate at the time of investment. PPF and SSY rates, however, change with each quarterly revision for the whole balance.
- Liquidity: PPF has a 15-year lock-in with limited partial withdrawals. FDs can usually be broken early with a small penalty.
- Tax: PPF and SSY are tax-free; FD interest is fully taxable.
Which Scheme Suits Which Goal?
- Long-term, tax-free savings: PPF, with a 15-year horizon and a maximum of ₹1.5 lakh a year.
- A daughter's education or marriage: SSY at 8.2%, for girls under 10 at account opening.
- Regular retirement income: SCSS at 8.2%, paid quarterly, for those aged 60 and above.
- Monthly income: Post Office MIS at 7.4%.
- Fixed 5-year saving with 80C benefit: NSC at 7.7%.
Small savings fit the low-risk part of a portfolio. If you're also building long-term wealth through equity, you can explore stocks and IPOs on GoPocket, keeping in mind that market returns are not guaranteed.
What to Watch Next
- The next rate review for January–March 2027, due by December 31, 2026.
- Government bond yields after the RBI's rate hike.
- Bank FD rate revisions over the coming weeks.
Sources
- Business Today, Small savings scheme interest rates unchanged for Q3 FY27: Check PPF, SCSS, SSY rates, September 30, 2026
- Business Today, Small savings interest rates today: PPF, SSY and SCSS rates face September 30 review, September 30, 2026
- Outlook Money, Small Savings Rates Unchanged: PPF At 7.10 Per Cent, NSC At 7.70 Per Cent, October 2026
Disclaimer: This article is for information and educational purposes only and is not financial or tax advice. Interest rates on small savings schemes are revised quarterly; verify current rates with India Post or your bank. Tax calculations exclude cess and surcharge. Consult a SEBI-registered investment adviser or tax professional for advice suited to your situation.
