The government has kept the interest rates unchanged for small savings schemes—such as the Public Provident Fund (PPF), Post Office Fixed Deposits (FD), and Sukanya Samriddhi Yojana (SSY)—for the July-September quarter (the second quarter of the 2026-27 financial year).
This marks the tenth consecutive quarter in which interest rates have remained unchanged. The government last hiked interest rates in December 2023.
7.1% Interest Rate on Public Provident Fund
The interest rate on the Public Provident Fund (PPF) will continue to be 7.1%, while the Sukanya Samriddhi Yojana will continue to offer 8.2%. Interest rates on small savings schemes range from 4% to 8.2%.
Before deciding on interest rates for small savings schemes, the government monitors the country’s cash and inflation situation. These rates are reviewed every three months.
Quarterly Review of Interest Rates
Interest rates for small savings schemes undergo a quarterly review. The formula for determining these rates was recommended by the Shyamala Gopinath Committee.
The committee suggested that the interest rates for these schemes should be 0.25% to 1.00% higher than the yields on government bonds of comparable maturity.