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Small Savings Rates: Will PPF, SSY, KVP See a Hike or Hold on Sept 30?
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News18•22-09-2026, 15:29
Small Savings Rates: Will PPF, SSY, KVP See a Hike or Hold on Sept 30?
- •Interest rates for popular small savings schemes like PPF, SSY, and KVP are due for their quarterly review on September 30 for the October-December 2026 quarter.
- •The Department of Economic Affairs reviews and notifies these rates quarterly, with the last revision for July-September 2026 announced on June 30.
- •Economists suggest a status quo or marginal increase in rates, citing a rise of about 31 basis points in the benchmark 10-year government bond yield since late June.
- •Small savings rates are theoretically linked to government securities of similar tenure, with movements in bond yields influencing rate decisions.
- •Investors in long-term schemes like PPF and SSY are keenly awaiting the September 30 announcement, as even minor changes can impact returns over time.
Key Questions Answered
The government is due to announce the interest rates for small savings schemes for the October-December 2026 quarter on September 30, 2026, following its regular quarterly review.
For the July-September 2026 quarter, the interest rate for the Public Provident Fund (PPF) is 7.1%, while the rate for the Sukanya Samriddhi Yojana (SSY) stands at 8.2%.
Small savings rates are theoretically linked to yields on government securities of comparable maturities, meaning movements in bond yields can influence whether the government holds or changes scheme rates.
