From Sukanya to PPF… there is no change in the interest of small savings schemes

The government has clarified the status of new interest rates for the common people who invest their hard-earned money in Small Savings Schemes. There has been no change in the returns of all other major small savings schemes including Sukanya Samriddhi Yojana, Public Provident Fund (PPF) for the second quarter of the financial year 2026-27, i.e. from 1 July 2026 to 30 September 2026. This simply means that investors will continue to get exactly the same profits for the next three months as they were getting in the first quarter from April to June.

Rates remained the same for the eighth consecutive time

Every common investor waits for the interest on small savings schemes. However, this time also the government has decided to maintain status quo regarding rates. There was no revision in interest rates even in the previous quarter (April-June 2026). This is the eighth consecutive quarter when the returns of small savings schemes have been kept the same.

How much profit is being received on which scheme?

1. Sukanya Samriddhi Yojana (SSY): 8.2%
2. Senior Citizen Savings Scheme (SCSS): 8.2%
3. National Savings Certificate (NSC): 7.7%
4. Kisan Vikas Patra (KVP): 7.5%
5. Post Office 5-Year Time Deposit (FD): 7.5%
6. Post Office Monthly Income Scheme (POMIS): 7.4%
7. Public Provident Fund (PPF): 7.1%
8. Post Office 3-Year Time Deposit (FD): 7.1%
9. Post Office 2-Year Time Deposit (FD): 7.0%
10. Post Office 1-Year Time Deposit (FD): 6.9%
11. Post Office 5-Year Recurring Deposit (RD): 6.7%

How are your returns determined?

The question often arises that how does the government determine these interest rates? Actually, the interest rates of these small savings schemes are closely reviewed every three months (quarter). Government bond yields are mainly kept in mind while determining returns. Apart from this, the final decision is taken keeping in mind the direction of general interest rates prevailing in the market, the condition of the country’s domestic economy as well as the global economic environment.

Why are these government options special?

These schemes are still considered the best tool for traditional investors who want safe investments with a long-term perspective.

1. Full Government Guarantee: All these schemes are fully government backed. This simply means that the risk of losing your money invested in them is zero.
2. Assurance of assured returns: Stock market fluctuations do not have any negative impact on these schemes. Your fixed returns remain completely safe.
3. Great tax savings: Investing in popular schemes like Sukanya Samriddhi and PPF gives direct benefit of huge tax exemption under Section 80C of the Income Tax Act.