Quick answer: The government reviews small savings interest rates every quarter, and the notification for the October to December 2026 quarter is due around 30 September. These rates cover PPF, Sukanya Samriddhi, Senior Citizen Savings Scheme, NSC, KVP, monthly income accounts and post office deposits. Rates have been held unchanged for several consecutive quarters despite RBI repo cuts, but the next rates should not be assumed before the official notification. Nothing you need to do before the announcement, with one exception noted below.
What gets reviewed
| Scheme | Who it suits | Lock-in |
|---|---|---|
| Public Provident Fund (PPF) | Long-term tax-free savings | 15 years |
| Sukanya Samriddhi Yojana (SSY) | Girl child, up to age 10 | Until 21 years or marriage after 18 |
| Senior Citizen Savings Scheme (SCSS) | Age 60+ | 5 years, extendable |
| National Savings Certificate (NSC) | Fixed 5-year saving with 80C benefit | 5 years |
| Kisan Vikas Patra (KVP) | Doubling of capital over a fixed period | As notified |
| Post Office Monthly Income Scheme | Regular monthly income | 5 years |
| Post Office time deposits | FD alternative | 1 to 5 years |
| Recurring deposit | Monthly saving habit | 5 years |
How the rates are set
The Finance Ministry notifies rates each quarter, informed by a formula linked to government securities yields of comparable maturity, with a spread added for certain schemes. In practice the government has often kept rates above what the formula would suggest, particularly for SCSS and SSY, because these are politically sensitive savings instruments for retirees and families.
That gap is why repo rate cuts do not translate directly into small savings cuts. Bank FD rates moved down through 2025 and 2026 while small savings rates stayed put, which has quietly made schemes like SCSS and SSY more competitive against bank deposits than they were two years ago.
What to expect for October to December
Treat all of that as expectation rather than forecast. The only authoritative source is the Finance Ministry notification itself, usually published in the last days of the quarter and reported widely the same day.
What a rate change would and would not affect
| Scheme | If rates change |
|---|---|
| PPF | New rate applies to the whole balance from the new quarter; it is not locked at the rate when you opened the account |
| Sukanya Samriddhi | Same as PPF; the rate floats quarter to quarter |
| SCSS | The rate at the time of deposit is locked for that 5-year term |
| NSC | Locked at the rate applicable when you purchase |
| KVP | Locked at purchase |
| Post office time deposit | Locked at the time of deposit for that term |
This distinction matters. PPF and SSY balances move with each quarterly notification, so a cut affects money you have already invested. SCSS, NSC, KVP and time deposits lock the rate at purchase, so a cut only affects new deposits.
The one action worth considering
Choose the scheme and timing for your liquidity needs and the officially available terms. Do not rush a deposit solely on an unverified prediction of a rate cut.
For PPF and SSY there is nothing to gain from timing, since the rate floats regardless. The useful PPF habit is different: deposit before the 5th of the month, because interest is calculated on the lowest balance between the 5th and the last day.
How this compares with bank FDs right now
Small savings schemes and bank fixed deposits are the two obvious homes for safe money, and the gap between them has narrowed. Small finance banks currently pay more than most small savings schemes, large public banks less. The trade-off is deposit insurance limits and lock-in rules rather than rate alone. See our comparison of current FD rates across banks, and our look at PPF vs NPS for long-term saving.
Frequently asked questions
When exactly is the notification published?
Typically in the final days of the preceding quarter, so the last week of September for the October to December period. There is no fixed hour, and it is announced by the Finance Ministry.
Does a PPF rate cut affect money already in my account?
Yes. PPF interest applies to the whole balance at the prevailing quarterly rate, so it is not locked at the rate when you opened the account.
Should I wait for the announcement before investing?
Check the notified rate and the scheme’s interest-calculation and lock-in rules before deciding when to deposit.
Where will the official rate be published?
The Finance Ministry notification, carried on the Department of Economic Affairs site and by India Post for post office schemes.
Published 10 September 2026. Expectations described here are based on recent quarterly patterns and are not forecasts. Verify the actual notified rates from the Finance Ministry or India Post before acting. General information, not investment advice.
Sources
For the current official position, check National Savings Institute — current small savings rates. Fees, rates and rules change without notice, and figures in this article are illustrative unless a source is cited beside them.
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