PPF, SSY, SCSS, KVP Rates: Government To Review October-December Interest Rates On September 30

Small savings investors are heading towards an important interest-rate review, with the government set to announce the rates applicable to the October-December 2026 quarter on September 30. The decision will determine whether popular schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizens' Savings Scheme (SCSS), Kisan Vikas Patra (KVP) and post office deposits continue to offer their existing returns or see a revision.

Small Savings Rates: Government to Announce October-December Rates on September 30

The upcoming review is being closely watched as government bond yields have moved higher since the previous small savings rate announcement on June 30, 2026. Small savings rates are linked, in principle, to the yields on government securities of comparable maturities. However, the government does not mechanically revise every scheme's interest rate every quarter based solely on movements in bond yields.

Market indicators suggest that the government could either retain the existing small savings interest rates or consider a modest increase in some schemes for the October-December quarter. The key factor being monitored is the movement in government bond yields.

The benchmark 10-year government bond yield has increased from 6.74% on June 30 to around 7.05% as of September 22, 2026. This represents a rise of nearly 31 basis points since the previous quarterly review.

A sustained increase in government bond yields can strengthen the case for higher small savings rates under the formula-based framework. However, the final decision rests with the government, which may also choose to keep rates unchanged.

Current PPF, SSY, KVP and Post Office Interest Rates

For the July-September 2026 quarter, the government kept interest rates unchanged across major small savings schemes. Among the popular schemes, Sukanya Samriddhi Yojana and Senior Citizens' Savings Scheme currently offer the highest annual interest rate of 8.2%.

The Public Provident Fund, meanwhile, continues to offer 7.1% annually. The National Savings Certificate carries an interest rate of 7.7%, while Kisan Vikas Patra and the 5-year Post Office Time Deposit offer 7.5%.

The current rates for the July-September 2026 quarter are:

Sukanya Samriddhi Yojana: 8.2% per annum
Senior Citizens' Savings Scheme: 8.2% per annum
National Savings Certificate: 7.7% per annum
Kisan Vikas Patra: 7.5% per annum
5-year Post Office Time Deposit: 7.5% per annum
Post Office Monthly Income Scheme: 7.4% per annum
Public Provident Fund: 7.1% per annum
3-year Post Office Time Deposit: 7.1% per annum
2-year Post Office Time Deposit: 7.0% per annum
1-year Post Office Time Deposit: 6.9% per annum
Post Office Recurring Deposit: 6.7% per annum
Post Office Savings Account: 4.0% per annum
PPF Interest Rate: Will 7.1% Change?

The PPF interest rate has remained at 7.1% for the current quarter. Investors will be watching the September 30 announcement to see whether the government changes the rate for the October-December period.

PPF is widely used for long-term savings because of its government-backed structure and tax treatment. The interest is compounded annually, so investors should consider the long-term compounding effect rather than comparing the PPF rate only with the headline rate offered by other small savings products.

Sukanya Samriddhi Yojana Interest Rate at 8.2%

The Sukanya Samriddhi Yojana currently offers an annual interest rate of 8.2%, making it one of the highest-yielding popular small savings schemes.

The scheme is designed for long-term savings for a girl child, and its interest rate will also be part of the September 30 review. Any change announced by the government would apply according to the rules for the new quarter.

Kisan Vikas Patra Interest Rate at 7.5%

Kisan Vikas Patra currently carries an interest rate of 7.5%. The scheme is among the small savings products whose rates are reviewed every quarter. Investors considering KVP should also look beyond the annual rate and consider the scheme's maturity and withdrawal rules before comparing it with PPF, NSC or post office time deposits.

Senior Citizens' Savings Scheme Offers 8.2%

The Senior Citizens' Savings Scheme currently offers 8.2% annually, matching the rate available under Sukanya Samriddhi Yojana. For senior citizens dependent on fixed-income investments, the September 30 announcement will therefore be significant. Any revision or continuation of the existing rate could affect the returns available on fresh investments made during the October-December quarter.

Post Office Deposit Rates Also Under Review

The government's quarterly review also covers post office deposits. For the July-September quarter, the 5-year Post Office Time Deposit offers 7.5%, while the 3-year deposit offers 7.1%. The 2-year and 1-year deposits offer 7.0% and 6.9%, respectively. The Post Office Monthly Income Scheme currently offers 7.4%, while the Recurring Deposit offers 6.7%. The Post Office Savings Account continues to offer 4%.

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