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Small savings interest rates
The interest rates the Government set for the Post Office and other small savings schemes for October to December 2026, with how each pays interest and a calculator for each.
| Scheme | Rate a year | How interest is paid | Calculator |
|---|---|---|---|
| Post Office savings account | 4.0% | Added once a year | – |
| 1-year time deposit | 6.9% | Worked out quarterly, paid yearly | – |
| 2-year time deposit | 7.0% | Worked out quarterly, paid yearly | – |
| 3-year time deposit | 7.1% | Worked out quarterly, paid yearly | – |
| 5-year time deposit | 7.5% | Worked out quarterly, paid yearly | – |
| 5-year recurring deposit (RD) | 6.7% | Compounded quarterly, paid at maturity | RD calculator |
| Monthly Income Scheme (MIS) | 7.4% | Paid every month | Post Office MIS calculator |
| Senior Citizens Savings Scheme (SCSS) | 8.2% | Paid every quarter | SCSS calculator |
| National Savings Certificate (NSC) | 7.7% | Compounded yearly, paid at maturity | NSC calculator |
| Public Provident Fund (PPF) | 7.1% | Compounded yearly | PPF calculator |
| Kisan Vikas Patra (KVP) | 7.5% | Compounded yearly; doubles in 115 months | KVP calculator |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Compounded yearly | Sukanya Samriddhi calculator |
From the Ministry of Finance office memorandum F. No. 1/4/2019-NS of 30 September 2026; checked 11 October 2026.
How the rates are set
The Ministry of Finance sets these rates every quarter and usually announces them on the last working day of the quarter before. For October to December 2026 it kept every rate unchanged; they have been the same since 1 January 2024. Under a formula followed since 2016, each rate is meant to track the yield on government bonds of a similar period plus a margin, but the Government can and often does keep a rate where it is.
Which deposits keep their rate
Time deposits, recurring deposits, MIS, SCSS, NSC and KVP keep the rate of the day you invest for their whole period. In PPF and Sukanya Samriddhi, each quarter’s rate applies to the whole balance, so a change reaches old deposits too.
Tax
Interest from PPF and Sukanya Samriddhi is tax-free. Interest from the other schemes is taxable at your slab rate. Under the old tax regime, deposits in PPF, Sukanya Samriddhi, SCSS, NSC and the 5-year time deposit count towards the ₹1.5 lakh a year deduction; the new tax regime gives no deduction for them.
Questions people ask
- When do small savings rates change?
- The Ministry of Finance announces each quarter’s rates before the quarter starts, usually around 31 March, 30 June, 30 September and 31 December. The rates have been left unchanged for many quarters in a row.
- Does a rate change affect my existing deposit?
- Not for time deposits, RD, MIS, SCSS, NSC or KVP: they keep the rate of the day you invest for their whole period. In PPF and Sukanya Samriddhi the new rate applies to the whole balance.
- Where do these rates come from?
- From the notice of the Ministry of Finance’s Department of Economic Affairs, which the Department of Posts sends out with its own order. The sources are listed below.
- Does TradingMaths recommend any of these schemes?
- No. This page only shows the rates the Government set and the arithmetic behind them; which scheme suits whom depends on their needs, the period and tax.
Sources
- Department of Posts SB Order 12/2026 of 30 September 2026, with the Ministry of Finance notice keeping the rates for October to December 2026 unchanged (PDF)
- Department of Posts SB Order 23/2023, with the rate table in force since 1 January 2024 (PDF)
- India Post: Post Office savings schemes and their interest rates