Small Savings Interest Rates Stay Unchanged for Q2 FY27; PPF, SCSS and SSY Returns Remain the Same

The Centre has decided to retain interest rates across all small savings schemes for the July-September 2026 quarter (Q2 FY27), offering continuity for investors seeking stable and government-backed returns. 

The decision means popular schemes, including the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC) and various Post Office savings products, will continue to earn the same interest rates as in the previous quarter.

SCSS and SSY Continue to Lead with 8.2% Returns

The Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) continue to offer the highest annual interest rate of 8.2% among the government's key small savings schemes.

Meanwhile, the National Savings Certificate (NSC) will continue to earn 7.7%, while the Public Provident Fund (PPF) offers 7.1%. Investors in the Post Office Monthly Income Scheme (POMIS) will continue to receive 7.4%, whereas Kisan Vikas Patra (KVP) carries an interest rate of 7.5%, with investments maturing in 115 months.

Interest Rates for July–September 2026

What the Decision Means for Investors

The unchanged rates provide predictability for investors who rely on fixed-income instruments to meet long-term financial goals. Since these schemes are backed by the Government of India, they remain among the safest investment avenues for conservative savers. Many also qualify for tax benefits, making them popular choices for retirement planning, wealth preservation, and children's education.

Although the government reviews small savings rates every quarter based on the movement in government bond yields, it has largely preferred maintaining stability in recent quarters rather than making frequent changes.

Read more: Key Financial Changes From July 1, 2026: ITR Deadline, EPFO 3.0, Aadhaar Update, Passport Fee Hike & More.

Conclusion

The decision to leave small savings interest rates unchanged for the second quarter of FY27 reinforces the government's focus on providing stable returns to retail investors. With SCSS and SSY continuing to offer the highest yields among major small savings schemes, these instruments remain compelling options for those seeking safety, predictable income, and long-term wealth creation.