Current Context: On 30 September 2026, the Ministry of Finance (MoF) announced the interest rates for Small Savings Schemes (SSS) for Q3 FY27, October–December 2026. The government kept the rates unchanged from the previous quarter, continuing the long pause in small-savings rate revisions.
- Quarter: The rates apply for 1 October to 31 December 2026, which is Q3 of FY 2026-27.
- PPF: The Public Provident Fund continues to offer 7.1% per annum.
- Sukanya Samriddhi Account: The interest rate remains 8.2%, one of the highest among major government small-savings schemes.
- Senior Citizens’ Savings Scheme (SCSS): The rate remains 8.2% per annum.
- National Savings Certificate (NSC): The interest rate continues at 7.7%.
- Kisan Vikas Patra (KVP): The rate remains 7.5%, with the investment maturing in 115 months.
- Post Office Monthly Income Scheme: The rate continues at 7.4% per annum.
- 5-Year Post Office Time Deposit: It continues to earn 7.5%, while shorter-term deposits carry their respective existing rates.
- Recurring Deposit: The 5-year Post Office Recurring Deposit continues at 6.7%.
- Savings Deposit: The Post Office savings-account rate remains 4% per annum.
- How rates are decided: Small-savings interest rates are reviewed every quarter and are broadly linked to yields on comparable-maturity government securities, along with the government’s administered-rate policy.
Question:
Q1. What interest rate was retained on the Public Provident Fund for Q3 FY27?a) 6.8%
b) 7.1%
c) 7.5%
d) 8.2%
Answer: b) 7.1%. The Ministry of Finance kept Small Savings Scheme rates unchanged for October–December 2026, with the PPF rate remaining at 7.1% per annum.
