Small savings interest rates from July 1 announced: What new and existing investors should know

"The rates of interest on various Small Savings Schemes for the second quarter of FY 2026-27, starting from July 1, 2026, and ending on September 30, 2026, shall remain unchanged from those notified for the first quarter (March 1, 2026, to June 30, 2026) of FY 2026-27," the Finance Ministry said in a notification.

The decision means returns on popular government-backed savings instruments, including the Public Provident Fund (PPF), Senior Citizens' Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY) and National Savings Certificate (NSC), will remain the same for another three months.

The announcement comes amid expectations from some investors that the government could revise rates in line with market conditions. However, the latest notification indicates that no changes have been made to any of the small savings schemes for the quarter beginning July 1, 2026.

In its previous notification on March 30, 2026, the Department of Economic Affairs had kept rates unchanged for the April-June 2026 quarter.

Small savings schemes interest rates (July-September 2026)

When were small savings rates last changed?

Interest rates on most small savings schemes have remained unchanged since the January-March quarter of FY 2023-24. The last revision came in April 2024, when the government increased the interest rate on the three-year Post Office Time Deposit from 7% to 7.1% and raised the rate on Sukanya Samriddhi Yojana from 8% to 8.2%. Since then, all other schemes have continued at the same rates.

How does the government decide interest rates?

The Finance Ministry reviews interest rates on small savings schemes every quarter. The rates are linked to the yields on government securities (G-Secs) of corresponding maturities, with a prescribed spread over these benchmark yields. Although the government has the flexibility to revise rates every quarter, it may choose to retain existing rates depending on prevailing market conditions and broader economic considerations.

This decision provides continuity for investors who rely on government-backed savings schemes for stable and predictable returns, particularly retirees, salaried individuals and parents investing for their children's long-term financial goals.