Govt keeps small savings rates unchanged for ninth straight quarter from July 1

The government on Tuesday kept interest rates unchanged on all small savings schemes, including the Public Provident Fund (PPF) and National Savings Certificate (NSC), for the ninth consecutive quarter, maintaining stability in returns for depositors from July 1, 2026. 

According to a notification issued by the Finance Ministry, interest rates applicable for the second quarter of FY27, from July 1 to September 30, 2026, will remain unchanged from the rates announced for the previous quarter. 

“The rates of interest on various Small Savings Schemes for the second quarter of FY26-27… shall remain unchanged from those notified for the first quarter of FY2026-27,” the ministry said. 

Among key schemes, the Sukanya Samriddhi Scheme will continue to offer 8.2% interest while the interest rate on three-year term deposits remains unchanged at 7.1%. 

The government retained the interest rate on the Public Provident Fund (PPF) at 7.1%, while post office savings deposits will continue to earn 4%. 

The National Savings Certificate (NSC) will continue to provide returns of 7.7% during the July–September quarter. 

Similarly, the Monthly Income Scheme (MIS) will continue to offer 7.4%, unchanged from the previous quarter. 

Interest rates on the Kisan Vikas Patra (KVP) have also been retained at 7.5%, with investments maturing in 115 months. 

Small savings schemes, largely operated through post offices and banks, are reviewed quarterly by the government. However, rates have remained unchanged since the fourth quarter of FY24, reflecting the government’s preference for maintaining stability despite changing market conditions. 

Separately, the Finance Ministry, in its June economic review, said the Indian economy recorded robust growth of 7.7% in FY26, supported by strong performance in manufacturing and services, alongside healthy consumption and investment activity. 

The ministry, however, noted that signs of moderation in industrial activity and evolving inflationary pressures warrant closer monitoring in the months ahead. The report pointed out that the economic activity maintained its momentum in the early months of 2026-27, as reflected in high-frequency indicators such as e-way bill generation, PMI indices, and electricity consumption, although some moderation was visible in select indicators. 

The report said the government's fiscal position strengthened in FY25-26 (Provisional Actuals), with the fiscal deficit moderating to 4.4% of GDP, the lowest level since 2018-19.