Small Savings Rates Unchanged for October–December 2026

This is for anyone who uses PPF, Sukanya Samriddhi, NSC, SCSS, or a post-office deposit and was waiting for the 1 October reset. Skip it if your debt money is only in bank FDs or debt funds — those cards are set by banks and markets, not by this office memorandum.

The decision and the dates

Office Memorandum F.No.1/4/2019-NS dated 30 September 2026, from the Department of Economic Affairs (Budget Division), says small-savings rates for the third quarter of FY 2026-27 — 1 October 2026 to 31 December 2026 — stay unchanged from the rates notified for 1 July 2026 to 30 September 2026. The Department of Posts circulated that memorandum as SB Order No. 12/2026, also dated 30 September 2026. The DEA small-savings page lists the Q3 revision note dated 30.09.2026.

Rates that continue

The order reproduced with that memorandum lists: savings deposit 4.0%; 1-year time deposit 6.9%; 2-year 7.0%; 3-year 7.1%; 5-year time deposit 7.5%; 5-year recurring deposit 6.7%; Senior Citizens Savings Scheme 8.2%; Monthly Income Account 7.4%; National Savings Certificate 7.7%; Public Provident Fund 7.1%; Kisan Vikas Patra 7.5% with maturity in 115 months; Sukanya Samriddhi 8.2%. The same figures are shown for the July–September and April–June 2026 columns.

PPF interest is credited on the rule already in the scheme, not as a new bonus because the quarter was left alone. A deposit you make in October earns the rate the rules attach to that credit, at 7.1% for this quarter’s notified PPF rate. It does not lock 7.1% for the remaining years of the account. The government resets this card every quarter.

Who should still act in October

SCSS and Sukanya are for specific people: a senior opening or extending SCSS, and a guardian funding a girl-child account. If you are neither, the 8.2% lines are not your yield. NSC and time deposits suit a dated goal inside five years only if you can live with the lock and the tax on interest. PPF still sits in a 15-year frame with partial withdrawal rules, which is why it is a poor place for next year’s school fee.

An unchanged card is not a reason to empty a bank FD or a debt fund overnight. Compare the post-tax FD you can actually book this week with the small-savings line that matches your horizon. Interest on most of these schemes is taxable. PPF’s exempt-exempt-exempt treatment is the exception people mix up with NSC.

What this reset does not decide

It does not set the RBI repo rate, your home-loan spread, or equity SIP returns. It does not change Section 80C’s ₹1.5 lakh cap. If PPF, EPF, and ELSS already fill that cap, another “tax saver” bought only because the quarter was quiet does not create a new deduction.

The next scheduled look at this card is the quarter starting 1 January 2027. Until that memorandum exists, do not plan on a cut or a hike.

October deposit check: Use the scheme that matches the person and the year you need the money · PPF at 7.1% is this quarter’s notified rate, not a 15-year promise · Run the PPF and FD calculators before moving a lump sum.

Related reading: PPF calculator, FD calculator, PPF, EPF and NPS guide, income tax calculator.

Source: DEA OM F.No.1/4/2019-NS dated 30 Sep 2026, via SB Order 12/2026.

Inflation reality check

Headline CPI understates education and healthcare inflation for many households. Stress-test goals in the LTCG/STCG calculator at +2% above reported CPI.

Direct plan reminder

Regular plans pay trail commission for years — switching to direct saves TER drag on every rupee compounding. Model switch tax before moving legacy folios.

Emergency fund check

Before increasing equity SIP, confirm 6–9 months of essential expenses in liquid savings. A ₹15,000 monthly SIP matters less if one hospital bill wipes the buffer.

Disclaimer: This article is for education only — not SEBI-registered investment advice. Verify tax and product rules with official notifications and a qualified CA/RIA before acting.