look news india
At the beginning of the festive season, the Ministry of Finance (Department of Economic Affairs) of the Central Government has made a big announcement for middle-class families and retail investors who want safe and guaranteed returns. The government has announced closure of all major post offices and banks operated for the third quarter of the current financial year 2026-27 (1 October 2026 to 31 December 2026). Small Savings Schemes Quarterly review of interest rates has been completed.
According to the latest notification, the government has not made any cut in the interest rates of any scheme and has kept all the rates unchanged at the old quarter level. Amidst global uncertainties and fluctuations in government bond yields, this is a relief news for common investors, as they will continue to get safe and attractive returns on their investments as before.
The government’s major social and welfare schemes have maintained the highest returns in this quarter as well:
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Sukanya Samriddhi Yojana (SSY): Government on this popular scheme being run for secure future and education and marriage of daughters. 8.2% per annum Is giving highest interest of Rs. This scheme is completely tax-free (EEE category).
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Senior Citizens Savings Scheme (SCSS): Also on this retirement scheme operated for the elderly aged 60 years and above. 8.2% annual interest The amount will continue to be paid, which is paid on a quarterly basis.
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Public Provident Fund (PPF): Interest rate on PPF account with mandatory lock-in of 15 years 7.1% per annum (Compounded annually) has been kept constant.
Complete details of interest rates and compounding frequency of all 12 major schemes notified by the Finance Ministry:
| Savings Scheme (Scheme Name) | Interest Rate (1 Oct 2026 to 31 Dec 2026) | Rule of calculation/payment of interest |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Compounded Annually |
| Senior Citizen Savings Scheme (SCSS) | 8.2% | Paid Quarterly |
| National Savings Certificate (NSC – VIII Issue) | 7.7% | Annual Compounding (5 years maturity) |
| Kisan Vikas Patra (KVP) | 7.5% | Money doubles in 115 months |
| Post Office Monthly Income Scheme (POMIS) | 7.4% | Paid Monthly |
| Public Provident Fund (PPF) | 7.1% | Annual Compounding (Tax-Free EEE) |
| Mahila Samman Savings Certificate (MSSC) | 7.5% | Quarterly Compounding (2 years period) |
| Post Office 5-Year RD | 6.7% | Quarterly Compounding |
| Post Office Time Deposit (1 Year) | 6.9% | Compounded Quarterly (paid annually) |
| Post Office Time Deposit (2 years) | 7.0% | Compounded Quarterly (paid annually) |
| Post Office Time Deposit (3 years) | 7.1% | Compounded Quarterly (paid annually) |
| Post Office Time Deposit (5 years) | 7.5% | Quarterly Compounding (80C Tax Exemption) |
| Ordinary Post Office Savings Account (SB) | 4.0% | annual payment |
The Government of India reviews the interest rates of small savings schemes every three months. Formed in the year 2011 Shyamala Gopinath Committee As per the recommendations of the Central Government, the interest rates of these schemes should be kept 25 to 100 basis points higher than the secondary market yields of Government Securities (Government Bonds/G-Sec Yields) of similar tenure. However, with the aim of reducing retail inflation and encouraging household savings, the government sometimes goes beyond this formula and keeps the rates stable or high in the interest of the general public and senior citizens.
Deposits in commercial banks are covered under ‘Deposit Insurance and Credit Guarantee Corporation’ (DICGC) only up to ₹ 5 lakh. In contrast, for every rupee deposited in small savings schemes of the post office Sovereign Guarantee of the Government of India Due to which the risk of losing the principal amount is zero. Additionally, schemes like PPF and Sukanya Samriddhi even today offer the dual benefit of tax exemption up to ₹1.5 lakh under Section 80C in the old tax regime and completely tax-free interest.