Post Office Small Savings Interest Rates Oct-Dec 2026: Full Table
The government kept small savings interest rates unchanged for October-December 2026. See the full post office rate table, scheme rules, tax treatment and worked examples.
The government has kept post office small savings interest rates unchanged for October-December 2026: PPF stays at 7.1%, Senior Citizens Savings Scheme and Sukanya Samriddhi at 8.2%, NSC at 7.7%, Kisan Vikas Patra at 7.5% and Monthly Income Scheme at 7.4%. Below is the full rate table, what the official notification says, the key rules for each scheme, worked examples in rupees and how each one is taxed.
Quick answer (Updated October 2026): For 1 October to 31 December 2026 (Q3 of FY 2026-27), all small savings rates are the same as in July-September 2026. The Ministry of Finance (Department of Economic Affairs) issued the decision on 30 September 2026, and India Post circulated it as SB Order No. 12/2026. Highest rates: SCSS and SSY at 8.2%. PPF: 7.1%. Post office savings account: 4%.
Key Takeaways
- No change for Oct-Dec 2026. These rates have been in place since the January-March 2024 quarter.
- SCSS (8.2%) suits retirees who want quarterly income; SSY (8.2%) suits parents saving for a daughter under 10.
- KVP at 7.5% doubles your money in 115 months (9 years 7 months).
- Rates are reviewed every quarter. The January-March 2027 rates had not been announced when this was updated; the decision usually comes in the last days of the preceding quarter.
- Once you invest in NSC, KVP, SCSS, MIS or a time deposit, the rate on that day stays fixed for that deposit. PPF and SSY balances move with each quarter’s rate.
Small savings interest rates for October-December 2026
| Scheme | Rate (Oct-Dec 2026) | Compounding / payout | Tenure |
|---|---|---|---|
| Post Office Savings Account | 4.0% | Credited yearly | No fixed tenure |
| 1-Year Time Deposit | 6.9% | Compounded quarterly, paid yearly | 1 year |
| 2-Year Time Deposit | 7.0% | Compounded quarterly, paid yearly | 2 years |
| 3-Year Time Deposit | 7.1% | Compounded quarterly, paid yearly | 3 years |
| 5-Year Time Deposit | 7.5% | Compounded quarterly, paid yearly | 5 years |
| 5-Year Recurring Deposit | 6.7% | Compounded quarterly | 5 years |
| Monthly Income Scheme (MIS) | 7.4% | Paid monthly | 5 years |
| Senior Citizens Savings Scheme (SCSS) | 8.2% | Paid quarterly | 5 years (extendable) |
| National Savings Certificate (NSC) | 7.7% | Compounded yearly, paid at maturity | 5 years |
| Kisan Vikas Patra (KVP) | 7.5% | Compounded yearly | Matures in 115 months |
| Public Provident Fund (PPF) | 7.1% | Compounded yearly | 15 years (extendable) |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Compounded yearly | 21 years from opening |
Sources: the Department of Posts’ SB Order No. 12/2026 dated 30 September 2026, which forwards the Ministry of Finance office memorandum of the same date, and the rate table reported by Business Today.
What the official notification says
The Department of Economic Affairs (Budget Division) in the Ministry of Finance issued an office memorandum on 30 September 2026. It states that interest rates on the various small savings schemes for the third quarter of FY 2026-27, starting 1 October 2026 and ending 31 December 2026, “shall remain unchanged” from those notified for the second quarter (1 July to 30 September 2026).
India Post passed this on to all postal circles the same day through SB Order No. 12/2026, asking for it to be displayed on post office notice boards. The memorandum does not give reasons. Media reports linked the decision to the government’s assessment of bond yields and inflation, and some counted it as the ninth or tenth straight quarter without change; that count is a media description, not part of the order. You can check notices on the India Post website and the Department of Economic Affairs site.
How these rates are decided
Since 2016, small savings rates are reviewed every quarter. The formula, based on the Shyamala Gopinath committee’s recommendations, links each scheme’s rate to government bond (G-sec) yields of similar maturity plus a spread. The government can and often does depart from the formula, which is why rates have sometimes stayed flat even when bond yields moved.
Next review: rates for January-March 2027 will be announced around the end of December 2026. Nothing has been announced yet, and we will not guess the outcome.
Scheme-by-scheme: who each one suits
Public Provident Fund (PPF) – 7.1%
Minimum Rs 500 and maximum Rs 1.5 lakh a year, up to 12 deposits a year. Lock-in of 15 years, extendable in blocks of 5 years. Loans are allowed from the third financial year and partial withdrawals from the seventh. Best for long-term, tax-free savings, especially for self-employed people without EPF.
Sukanya Samriddhi Yojana (SSY) – 8.2%
For a girl child below 10 years, maximum two accounts per family (for two girls). Minimum Rs 250 and maximum Rs 1.5 lakh a year. Deposits are made for 15 years; the account matures 21 years from opening. Partial withdrawal is allowed for higher education after the girl turns 18.
Senior Citizens Savings Scheme (SCSS) – 8.2%
For people aged 60 or above, with limited entry for some retirees aged 55-60 and retired defence personnel. Minimum Rs 1,000, maximum Rs 30 lakh across all SCSS accounts of one person. Interest is paid every quarter. Tenure is 5 years, extendable by 3 years. Premature closure is allowed with a penalty.
National Savings Certificate (NSC) – 7.7%
Minimum Rs 1,000, no maximum. Five-year lock-in, interest compounded yearly and paid at maturity. Good for a fixed five-year goal with a tax deduction under the old regime.
Kisan Vikas Patra (KVP) – 7.5%
Minimum Rs 1,000, no maximum. At the current rate, money doubles in 115 months. Open to anyone, despite the name. No tax deduction on investment.
Monthly Income Scheme (MIS) – 7.4%
Minimum Rs 1,000; maximum Rs 9 lakh in a single account and Rs 15 lakh in a joint account. Interest is paid monthly for five years. Useful for regular household income for those under 60 who cannot use SCSS.
Time Deposits and Recurring Deposit
Time deposits come in 1, 2, 3 and 5-year terms (6.9% to 7.5%), with a minimum of Rs 1,000 and no upper limit. The 5-year RD at 6.7% starts from Rs 100 a month. These are the post office’s answer to bank FDs and RDs.
Worked examples in rupees
These are simple illustrations at current rates, before tax. Actual amounts depend on deposit dates and rounding.
| Scenario | Calculation | Result |
|---|---|---|
| Rs 9 lakh in MIS (single account) | Rs 9,00,000 x 7.4% / 12 | About Rs 5,550 a month |
| Rs 30 lakh in SCSS | Rs 30,00,000 x 8.2% / 4 | About Rs 61,500 a quarter (Rs 2.46 lakh a year) |
| Rs 1 lakh in NSC for 5 years | Compounded yearly at 7.7% | About Rs 1,44,903 at maturity |
| Rs 1 lakh in KVP | Doubling period at 7.5% | Rs 2 lakh after 115 months |
| Rs 1.5 lakh a year in PPF for 15 years | Deposited at the start of each year, 7.1% throughout | About Rs 40.68 lakh (Rs 22.5 lakh invested) |
The PPF figure assumes the rate stays at 7.1% for all 15 years, which is unlikely. PPF and SSY balances earn whatever rate is notified each quarter, so treat long-term projections as rough estimates.
How each scheme is taxed
| Scheme | Deduction on investment (old regime) | Interest |
|---|---|---|
| PPF | Yes, within the Rs 1.5 lakh limit | Tax-free |
| SSY | Yes, within the Rs 1.5 lakh limit | Tax-free |
| SCSS | Yes, within the Rs 1.5 lakh limit | Taxable |
| NSC | Yes, within the Rs 1.5 lakh limit | Taxable (accrued interest can count as reinvested for the deduction) |
| 5-Year Time Deposit | Yes, within the Rs 1.5 lakh limit | Taxable |
| KVP, MIS, RD, 1-3 year TDs | No | Taxable |
Two things changed the tax picture. First, these deductions are available only if you choose the old tax regime; the new regime does not allow them. Second, the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and the old Section 80C deductions were renumbered (reported as Section 123 with a schedule) while keeping the same Rs 1.5 lakh limit. Confirm the exact treatment for your case with a tax professional.
Which scheme for which goal
| Goal | Scheme to consider | Why |
|---|---|---|
| Daughter’s education or marriage | SSY | Highest rate with tax-free interest |
| Retirement income for parents | SCSS, then MIS | Quarterly or monthly payouts from a government scheme |
| Long-term tax-free corpus | PPF | Tax-free interest, loan and withdrawal options |
| Fixed 5-year goal | NSC or 5-year TD | Known maturity value with a deduction under the old regime |
| Doubling a lump sum, no tax planning | KVP | Simple, transferable, known doubling period |
| Monthly saving habit | RD or PPF | Small deposits; PPF has better tax treatment |
If you are comparing these with mutual funds and FDs for a monthly saving, our comparison of SIP vs FD vs PPF for Rs 5,000 a month walks through the trade-offs.
How to invest: post office or bank
- Choose the scheme and amount based on your goal and the limits above.
- Visit any post office, or an authorised bank branch for schemes such as PPF, SSY and SCSS, with Aadhaar, PAN and photographs.
- Fill the account opening form and the nomination form. Do not skip nomination.
- Pay by cash (within limits), cheque or transfer. Larger SCSS deposits above Rs 1 lakh need a cheque or bank transfer.
- For post office accounts, activate India Post internet or mobile banking, or use an India Post Payments Bank account, to make future PPF, SSY and RD deposits online.
Mistakes that cost small savers money
Most losses in these schemes come from paperwork and missed deposits, not from the rates. Watch for these:
- Missing the yearly minimum in PPF or SSY. If you do not deposit at least Rs 500 in PPF or Rs 250 in SSY in a financial year, the account is treated as discontinued. It can be revived by paying the missed minimum plus a Rs 50 penalty for each year, but it is easier to set a reminder for every March.
- Depositing PPF late in the month. PPF interest for a month is calculated on the lowest balance between the 5th and the end of the month. A deposit made on or before the 5th earns interest for that month; one made on the 6th does not.
- Breaking deposits early. Premature closure of time deposits, MIS, SCSS and NSC comes with penalties or a lower rate. Match the tenure to when you actually need the money.
- Leaving out the nominee. Claims without a nomination take far longer for the family. Add or update the nominee at the time of opening.
- Exceeding the limits. Deposits above Rs 1.5 lakh a year in PPF or SSY earn no interest on the excess, and SCSS and MIS have total caps per person.
- Ignoring tax on interest. SCSS, MIS, NSC and time deposit interest is taxable. Report it in your return even if no TDS was deducted.
Frequently Asked Questions
What is the PPF interest rate for October-December 2026?
The PPF rate for 1 October to 31 December 2026 is 7.1% a year, compounded yearly. It is unchanged from the previous quarter.
Which small savings scheme gives the highest interest now?
The Senior Citizens Savings Scheme and Sukanya Samriddhi Yojana both pay 8.2%, the highest among small savings schemes for Oct-Dec 2026.
If rates are cut next quarter, will my NSC or SCSS earn less?
No. For NSC, KVP, SCSS, MIS and time deposits, the rate on the day you invest stays fixed for that deposit. Only PPF and SSY balances follow each quarter’s notified rate.
When will the January-March 2027 rates be announced?
Usually in the last days of December. As of October 2026 nothing has been announced. Check the Ministry of Finance or India Post notice at the end of December.
How long does KVP take to double money at 7.5%?
At the current 7.5% rate, KVP doubles your investment in 115 months, which is 9 years and 7 months.
Is interest from post office schemes taxable?
PPF and SSY interest is tax-free. Interest from SCSS, NSC, KVP, MIS, time deposits and RD is taxable at your slab rate.
Lock in what fits your goal
With rates unchanged for October-December 2026, the decision is about goal fit, not timing. Parents of young daughters should look at SSY first, retirees at SCSS, and long-term savers at PPF. Interest rates are revised quarterly and tax rules change, so verify the current rate on the India Post or Ministry of Finance notice before investing, and consult a financial adviser for larger sums.
