Interest rates on PPF, the Senior Citizens Savings Scheme, Sukanya Samriddhi, NSC and post office deposits are unchanged for October to December 2026. The Finance Ministry’s Department of Economic Affairs announced on 30 September that the rates notified for July to September would continue, Business Today reported.
The rates have now held for more than two years. The Department of Posts’ own circulars show the pattern: its order for January to March 2026 and its order for July to September 2026 each kept the previous quarter’s rates. This is general information, not financial advice; speak to a qualified adviser before deciding where to put your savings.
The rates for October–December 2026
The table follows the scheme-wise rates published by Indian Bank, an authorised agency bank, for 1 October to 31 December 2026. The recurring deposit and savings account rates are from Business Today’s report on the same quarter.
| Scheme | Rate per year |
|---|---|
| Senior Citizens Savings Scheme (SCSS) | 8.2% |
| Sukanya Samriddhi Account | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Kisan Vikas Patra (matures in 115 months) | 7.5% |
| Post Office 5-year Time Deposit | 7.5% |
| Post Office Monthly Income Scheme | 7.4% |
| Public Provident Fund (PPF) | 7.1% |
| Post Office 3-year Time Deposit | 7.1% |
| Post Office 2-year Time Deposit | 7.0% |
| Post Office 1-year Time Deposit | 6.9% |
| Post Office 5-year Recurring Deposit | 6.7% |
| Post Office Savings Account | 4.0% |
Indian Bank lists how often each compounds: quarterly for SCSS and the time deposits, yearly for PPF, Sukanya Samriddhi, NSC and KVP. The Monthly Income Scheme pays out every month instead of compounding.
Which rate do you actually get
This catches many people out. For fixed-tenure schemes, the rate on the day you open the account is locked for its full term. Indian Bank’s page notes that the rates for SCSS, KVP, NSC, the Monthly Income Scheme and time deposits apply to accounts opened between 1 October and 31 December 2026. If you opened an NSC in 2022, it keeps the rate of that time.
PPF and Sukanya Samriddhi work differently. Their balances earn whatever rate is notified for each quarter, so a cut in a future quarter would apply to your existing balance too. That is why some savers who expect rates to fall prefer to lock in fixed schemes now. Nobody outside the government knows the next quarter’s decision.
Picking a scheme: the practical differences
- SCSS is for older savers and pays interest quarterly. It is the highest-paying regular income option here, useful for retirees in Chennai who want predictable income.
- Sukanya Samriddhi is an account for a girl child, opened by a parent or guardian, with the same 8.2 per cent rate.
- PPF has a 15-year term, and its rate can change every quarter.
- NSC is a five-year certificate with interest compounded and paid at maturity.
- Monthly Income Scheme pays interest every month on a lump sum.
- Time deposits from one to five years let you match a known future expense.
Eligibility rules, deposit limits and early-withdrawal penalties differ by scheme; ask at the counter or check the scheme rules before you invest. Tax treatment also differs by scheme and by your chosen income tax regime. Some, such as PPF and the five-year time deposit, have traditionally qualified for deductions under the old regime, which offers few such deductions in the new one. Check the current position before investing for tax reasons.
A quick comparison with bank deposits
Bank fixed deposit rates move with the Reserve Bank’s policy rate and each bank’s own funding needs, while small savings rates have stayed put for well over two years. Any gap between the two is one reason post office counters in Chennai see steady demand from retirees. Two cautions apply. Small savings schemes are backed by the government, but some lock your money in for years and penalise early withdrawal. And interest from most of them, unlike PPF, is taxable at your slab rate, so the post-tax return can be lower than the headline figure suggests. Compare what you actually keep, not just the rate on the board.
Where to open an account in Chennai
You can open these at post offices that offer savings bank services, including the head post offices across the city, and at authorised banks for schemes such as PPF, SCSS and Sukanya Samriddhi. Carry your KYC documents, typically Aadhaar, PAN and a photograph. Many banks also let existing customers open PPF and Sukanya accounts online.
Quick answers
What is the PPF interest rate for October–December 2026?
7.1 per cent a year, unchanged.
What does SCSS pay this quarter?
8.2 per cent, the same as Sukanya Samriddhi.
Will my old NSC get the new rate?
No. NSC and other fixed-tenure schemes keep the rate from the quarter you invested.
When is the next review?
Rates are reviewed every quarter. The decision for January to March 2027 is normally announced at the end of December, as the Department of Posts’ order for January 2026 was.
Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.
Sources
- Interest rates for small savings schemes, 1 Oct–31 Dec 2026 (Indian Bank, authorised agency bank)
- SB Order No. 07/2026: interest rates for small savings schemes w.e.f. 01.07.2026 (Department of Posts)
- SB Order No. 17/2025: interest rates for small savings schemes w.e.f. 01.01.2026 (Department of Posts)
- Small savings scheme interest rates unchanged for Q3 FY27 (Business Today, 30 Sep 2026)
- Govt keeps interest rates on small savings schemes unchanged for ninth quarter (ThePrint/PTI)
