Small Savings Scheme Interest Rates: Government to Review PPF, SSY and KVP Rates on September 30

Investors in government-backed small savings schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and Kisan Vikas Patra (KVP) are awaiting the government’s next interest-rate decision. The rates for the October-December quarter are expected to be reviewed on September 30, 2026.

The government reviews interest rates on small savings schemes every three months.

During the previous review on June 30, 2026, there was no change in the rates of the major schemes for the July-September quarter. The upcoming review will determine whether the existing rates continue or are revised for the next quarter.

Government Bond Yields in Focus

Government bond yields are an important factor considered while determining interest rates on small savings schemes. Yields on government securities with comparable maturities serve as a key reference.

The 10-year government bond yield was around 6.74% on June 30, 2026. By September 22, it had increased to approximately 7.05%, representing a rise of about 31 basis points (bps).

Investors are now watching whether this increase in bond yields will have any impact on the interest rates offered under small savings schemes. However, a rise in government bond yields does not automatically mean that small savings rates will increase by the same amount. The final decision is taken by the government.

PPF, SSY and KVP Investors Await Decision

PPF and SSY are widely used for long-term savings, so even a small change in their interest rates can affect the overall returns earned over an extended period.

For KVP investors, the maturity period is also an important consideration along with the applicable interest rate. Any revision in rates could therefore be relevant for people planning their investments or already holding these savings products.

At present, there has been no official confirmation of any change in the existing rates.

Interest Rates for October-December to Be Known After Review

It is too early to say whether the government will change the rates of PPF, SSY, KVP or other small savings schemes for the October-December quarter.

The existing rates remain applicable for now, and any revision will become official only after the government issues a notification following the September 30 review.

Disclaimer

This article is based on the information available regarding the upcoming review of small savings scheme interest rates. Interest rates may be changed by the government after its quarterly review. Investors should rely on the official notification for the final rates applicable for the October-December 2026 quarter.