Post Office Interest Rates for October–December 2026: PPF, SCSS, NSC, RD, MIS, SSY and KVP
The government has left small savings rates unchanged for October–December 2026. Here's every post office scheme's rate, what it actually pays on a typical deposit, and which one suits which goal.
By BizToolsIndia Editorial Team · Published · 3 min read
Key takeaways
- Rates for October–December 2026 are unchanged from the previous quarter, as announced by the Ministry of Finance on 30 September 2026.
- Senior Citizens Savings Scheme and Sukanya Samriddhi pay the most, at 8.2%.
- PPF stays at 7.1%, NSC at 7.7%, and the 5-year RD at 6.7%.
- A ₹30 lakh SCSS deposit pays ₹61,500 every quarter; ₹10,000 in NSC becomes ₹14,490 in 5 years.
- Rates haven't changed since December 2024, though higher bond yields could push them up in future quarters.
All rates at a glance
| Scheme | Interest rate | How interest works |
|---|---|---|
| Post Office Savings Account | 4.0% | Yearly |
| 1-year Time Deposit | 6.9% | Compounded quarterly, paid yearly |
| 2-year Time Deposit | 7.0% | Compounded quarterly, paid yearly |
| 3-year Time Deposit | 7.1% | Compounded quarterly, paid yearly |
| 5-year Time Deposit | 7.5% | Compounded quarterly, paid yearly |
| 5-year Recurring Deposit | 6.7% | Compounded quarterly |
| Monthly Income Scheme (MIS) | 7.4% | Paid monthly |
| Senior Citizens Savings Scheme (SCSS) | 8.2% | Paid quarterly |
| National Savings Certificate (NSC) | 7.7% | Compounded yearly, paid at maturity |
| Kisan Vikas Patra (KVP) | 7.5% | Doubles in 115 months |
| Public Provident Fund (PPF) | 7.1% | Compounded yearly |
| Sukanya Samriddhi Account (SSY) | 8.2% | Compounded yearly |
What these rates pay in rupees
| Scheme | Example | What you get |
|---|---|---|
| SCSS (8.2%) | ₹30 lakh (the maximum) | ₹61,500 every quarter |
| MIS (7.4%) | ₹9 lakh single account (the maximum) | ₹5,550 every month |
| MIS (7.4%) | ₹15 lakh joint account (the maximum) | ₹9,250 every month |
| NSC (7.7%) | ₹1 lakh for 5 years | ₹1,44,903 at maturity |
| 5-year Time Deposit (7.5%) | ₹1 lakh | ₹1,44,995 if interest is reinvested |
| 5-year RD (6.7%) | ₹5,000 a month | ₹3,56,829 after 5 years (₹3 lakh deposited) |
| PPF (7.1%) | ₹1.5 lakh a year for 15 years | ₹40,68,209 (₹22.5 lakh deposited) |
| KVP (7.5%) | ₹1 lakh | ₹2 lakh after 115 months |
Assumes the current rate holds. For PPF and SSY, the rate is reset every quarter and applies to your whole balance; for most other schemes, the rate on the day you invest is locked for the term.
Which scheme suits which goal
- Regular income in retirement: SCSS (age 60+, or 55+ for some retirees) for the highest rate, MIS for monthly payouts.
- Daughter's education or marriage: Sukanya Samriddhi, for girls under 10 — 8.2% and tax-free.
- Long-term, tax-free savings: PPF, with a 15-year lock-in.
- Fixed-term saving with a known maturity value: NSC or the 5-year Time Deposit. Both qualify for a deduction under the old tax regime.
- Saving a fixed amount each month: the 5-year RD.
How tax applies
| Scheme | Interest taxable? | Deduction under the old regime? |
|---|---|---|
| PPF, SSY | No — tax-free | Yes, up to the ₹1.5 lakh limit |
| NSC, 5-year Time Deposit, SCSS | Yes, at your slab rate | Yes, up to the ₹1.5 lakh limit |
| RD, MIS, KVP, 1–3 year Time Deposits | Yes, at your slab rate | No |
The ₹1.5 lakh deduction is available only if you file under the old tax regime. Under the new regime, these schemes still earn the same interest, but there's no deduction for investing. See old vs new tax regime for FY 2026-27.
Will rates rise next quarter?
Small savings rates are linked to government bond yields of similar maturity, plus a spread, and reviewed every quarter. Bond yields have risen and the RBI raised the repo rate in October 2026, which could support higher rates — but the government isn't bound to follow the formula, and it has kept rates unchanged since December 2024. The next review is due by the end of December 2026 for January–March 2027.
Project your own deposits with the PPF Calculator, RD Calculator, FD Calculator and Compound Interest Calculator.
Frequently asked questions
What is the PPF interest rate for October–December 2026?
7.1% a year, compounded yearly — unchanged from the previous quarter.
Which post office scheme gives the highest interest?
SCSS and Sukanya Samriddhi, both at 8.2%. SCSS is for senior citizens; SSY is for girls under 10.
Are post office deposits safe?
Small savings schemes are backed by the Government of India, which makes them among the safest places for your money.
If I open an NSC now, will my rate change later?
No. NSC, Time Deposits, SCSS, MIS, KVP and RD lock in the rate on the day you invest. PPF and SSY rates can change every quarter.