Latest small savings scheme interest rates: PPF vs MIS vs SCSS vs SSA - which offers highest return for July-September 2026

The government has not changed interest rates of small savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS) for the July-September 2026 quarter (FY 2026-27). After the Finance Ministry’s announcement about small savings scheme rates, the SCSS and Sukanya Samriddhi Yojana (SSY) still offer the joint highest interest rate at 8.2% each. Here, we take you through interest rates of key small savings schemes.

The Public Provident Fund (PPF) offers an interest rate of 7.10% for the July-September 2026 quarter. The scheme has a 15-year maturity period and offers tax-free returns, making it a popular long-term investment choice. Furthermore, investments in the PPF qualify for a tax deduction of up to Rs 1.5 lakh in a financial year under Section 80C of the Income Tax Act, 1961.

For the July-September quarter, the National Savings Certificate (NSC) offers an interest rate of 7.70%. One of the NSC's primary benefits is that no TDS (tax deducted at source) is levied on its interest earnings. Furthermore, investments in the NSC are eligible for a tax deduction of up to Rs 1.5 lakh in a financial year under Section 80C of the Income Tax Act.

For the July-September 2026 quarter, the Post Office Monthly Income Scheme (POMIS) gives an interest rate of 7.40%. The scheme's minimum investment is Rs 1,000. The scheme comes with a maximum investment limit of Rs 9 lakh for single accounts and Rs 15 lakh for combined accounts. However, it is vital to note that the POMIS provides no tax benefits, and any interest earned is completely taxed.

The Senior Citizens' Savings Scheme (SCSS) offers the joint highest interest rate of 8.20% among all small savings schemes for the July- September 2026 quarter. It requires a minimum investment of Rs 1,000 and allows a maximum investment of up to Rs 30 lakh.

The scheme has a 5-year tenure and is available to individuals aged 60 years and above. In addition to stable returns, the SCSS provides tax benefits, with investments eligible for a deduction of up to Rs 1.5 lakh in a financial year under Section 80C of the Income Tax Act.

Sukanya Samriddhi Yojana (SSY) offers an interest rate of 8.20%. The scheme requires a minimum annual investment of Rs 250 and allows a maximum investment of Rs 1.5 lakh per financial year. Investments in the SSY qualify for a tax deduction of up to Rs 1.5 lakh per financial year under Section 80C of the Income Tax Act. The interest earned is completely tax-free.

Kisan Vikas Patra (KVP) offers a stable interest rate of 7.50%. It requires a minimum investment of Rs 1,000, while there is no maximum investment limit. Unlike some other small savings schemes, the KVP does not offer any tax benefits, and the interest earned is taxable.

The Post Office Time Deposit (POTD) scheme offers interest rates ranging from 6.9% to 7.5% depending on the chosen tenure. It is available in tenures of 1, 2, 3, and 5 years. Among these, only the 5-year deposit qualifies for tax deduction of up to Rs 1.5 lakh per financial year under Section 80C of the Income Tax Act.
On the other hand, the Post Office Recurring Deposit (RD) offers an interest rate of 6.70% for the July-September quarter. It does not offer any tax benefits.