The Ministry of Finance may make an important decision regarding Small Saving Schemes on September 30. This decision will concern the interest rates provided under programs such as PPF, Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme, Post Office Time Deposit, and Post Office RD Scheme.
The Finance Ministry reviews the interest rates for these schemes every three months. If there is a need to adjust the rates, the ministry makes the corresponding changes. This time, the decision will be made for the October-December 2026 quarter.
Rising inflation and increasing bond yields signal a possible increase in interest rates, but the more likely scenario is the maintenance of current rates. If rates are increased, it will be the first change since December 2024, when rates for Sukanya Samriddhi accounts and three-year Post Office deposits were raised.
According to the Consumer Price Index, inflation rose from 3.48% in April 2026 to 4.82% in August. Although this figure remains below the upper limit of 6% set by the Reserve Bank of India, the rise indicates the emergence of new price pressures.
There is also an increase in interest rates on government bonds. The yield on 10-year government bonds reached above 7% in recent months. The Shyamala Ghopinat Committee recommended linking the interest rates of small savings to the average G-Sec yield for the corresponding maturity period, adding an additional spread of 25–100 basis points depending on the scheme.
Current interest rates are as follows: Post Office Savings Account — 4.00%; 1-Year FD — 6.90%; 2-Year FD — 7%; 3-Year FD — 7.10%; 5-Year FD — 7.50%; RD — 6.70%; MIS — 6.70%; NSC — 7.70%; PPF — 7.10%; SCSS — 8.20%; and Sukanya Samriddhi Yojana — 8.20%.