Post Office Small Savings Schemes: Rates & How They Work
Updated 2026-10-30
Quick answer: For October–December 2026 (Q3 FY 2026-27) the government kept small-savings rates unchanged: PPF 7.1%, NSC 7.7%, KVP 7.5% (doubles in 115 months), SCSS 8.2%, Sukanya Samriddhi 8.2%, MIS 7.4%, 5-year RD 6.7% and time deposits 6.9%–7.5%. Rates are reviewed every quarter.
Rates for Q3 FY 2026-27
Source: Ministry of Finance office memorandum dated 30 September 2026 and Department of Posts SB Order 12/2026.
- PPF – 7.1%, compounded annually
- NSC (VIII issue) – 7.7%, compounded annually; ₹10,000 → ₹14,490 in 5 years
- Kisan Vikas Patra – 7.5%, matures in 115 months
- Senior Citizen Savings Scheme – 8.2%, paid quarterly
- Monthly Income Scheme – 7.4%, paid monthly
- 5-year Recurring Deposit – 6.7%, compounded quarterly
- Time deposits – 1 yr 6.9%, 2 yr 7.0%, 3 yr 7.1%, 5 yr 7.5% (calculated quarterly, paid annually)
- Sukanya Samriddhi – 8.2%; Savings account – 4.0%
Locked-in vs floating rates
NSC, KVP, SCSS, MIS, RD and time deposits lock in the rate on the day you invest. PPF and Sukanya Samriddhi accounts earn whatever rate is notified each quarter.
Tax treatment at a glance
PPF and Sukanya Samriddhi interest is tax-free. NSC, SCSS and the 5-year time deposit qualify for the old-regime tax-saving deduction, but their interest is taxable. KVP, MIS and RD give no deduction and their interest is taxable.
FAQs
How often do Post Office interest rates change?
The government reviews them every quarter and announces the next quarter's rates shortly before it starts.