Small savings interest rates, July–September 2026
| Scheme | Rate | Interest | Tenure |
|---|---|---|---|
| Post Office Savings AccountYearly · No lock-in | 4.0% | Yearly | No lock-in |
| 1-year Time DepositQuarterly · 1 year | 6.9% | Quarterly | 1 year |
| 2-year Time DepositQuarterly · 2 years | 7.0% | Quarterly | 2 years |
| 3-year Time DepositQuarterly · 3 years | 7.1% | Quarterly | 3 years |
| 5-year Time DepositQuarterly · 5 years | 7.5% | Quarterly | 5 years |
| 5-year Recurring DepositQuarterly · 5 years | 6.7% | Quarterly | 5 years |
| Senior Citizens Savings Scheme (SCSS)Paid quarterly · 5 years | 8.2% | Paid quarterly | 5 years |
| Monthly Income Scheme (POMIS)Paid monthly · 5 years | 7.4% | Paid monthly | 5 years |
| National Savings Certificate (NSC)Yearly · 5 years | 7.7% | Yearly | 5 years |
| Kisan Vikas Patra (KVP)Yearly · Doubles in 115 months | 7.5% | Yearly | Doubles in 115 months |
| Public Provident Fund (PPF)Yearly · 15 years | 7.1% | Yearly | 15 years |
| Sukanya Samriddhi Yojana (SSY)Yearly · 21 years | 8.2% | Yearly | 21 years |
Rates are per year. Time deposit and RD interest is calculated quarterly and paid out yearly or at maturity.
Which scheme suits you
- Long-term, tax-free savings: PPF (7.1%, 15 years, tax-free interest).
- A daughter's education or marriage: Sukanya Samriddhi Yojana (8.2%, tax-free).
- Regular income after retirement: SCSS (8.2%, paid every quarter) or the Monthly Income Scheme (7.4%).
- A fixed sum for 5 years with 80C benefit: NSC (7.7%) or the 5-year time deposit (7.5%).
- Monthly saving: the 5-year recurring deposit (6.7%).
Post office vs bank FD rates
Post office time deposits currently pay more than most large banks for the same tenure. Compare today's bank FD rates, and see how RBI's repo rate moves them.
Frequently asked questions
What is the PPF interest rate for July–September 2026?
PPF earns 7.1% a year for July–September 2026. Interest is calculated monthly on the lowest balance between the 5th and the end of the month and credited once a year on 31 March.
Which post office scheme gives the highest interest?
The Senior Citizens Savings Scheme and Sukanya Samriddhi Yojana pay the most, 8.2% a year. SCSS is open to people aged 60 or above, and SSY to parents of a girl child under 10.
How often do post office interest rates change?
The Ministry of Finance reviews small savings rates every quarter and announces them near the end of March, June, September and December. For most schemes the rate you get when you invest stays fixed until maturity; PPF and SSY follow the current quarter’s rate.
Is interest on post office schemes taxable?
Interest on PPF and SSY is tax-free. Interest on time deposits, recurring deposits, MIS, SCSS, NSC and KVP is taxable at your slab rate. PPF, SSY, NSC, SCSS and the 5-year time deposit qualify for the Section 80C deduction under the old tax regime.
Are post office schemes safer than bank FDs?
Small savings schemes are backed by the Government of India, so both principal and interest are guaranteed. Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank.
Sources
- Department of Economic Affairs – small savings interest rates
- National Savings Institute – scheme details
- India Post – post office savings schemes
Last checked on 20 September 2026. Rates are reviewed every quarter; we update this page when the new quarter's rates are notified.