PPF, EPF and Sukanya Samriddhi Interest Rates for FY 2026-27
Published 28 July 2026 · Tax & Salary
Meera puts ₹12,500 a month into her PPF and another ₹4,000 into her daughter's Sukanya Samriddhi account, and assumed both earned "around 8%." They don't — one earns 7.1%, the other 8.2%, a full percentage point apart, compounding annually over 15+ years. On long horizons, that gap is worth lakhs.
The government reviews small savings scheme rates every quarter. For July–September 2026, rates have held unchanged for a ninth straight quarter. Here is every rate that matters, in one place.
Every Small Savings Rate for Jul–Sep 2026
| Scheme | Rate (p.a.) |
|---|---|
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| Senior Citizen Savings Scheme (SCSS) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Kisan Vikas Patra (KVP) — 115-month maturity | 7.5% |
| Public Provident Fund (PPF) | 7.1% |
| Post Office Monthly Income Scheme (MIS) | 7.4% |
| Post Office Time Deposit — 5 year | 7.5% |
| Post Office Time Deposit — 3 year | 7.1% |
| Post Office Time Deposit — 1 year | 6.9% |
| Post Office Recurring Deposit (5 year) | 6.7% |
| Post Office Savings Account | 4.0% |
| EPF (Employees' Provident Fund) — FY 2025-26 | 8.25% |
Note that EPF isn't technically a "small savings scheme" — it's declared separately by EPFO — but it belongs in this comparison since it's the largest forced-savings instrument most salaried Indians hold. The rate rose from 8.15% in FY 2024-25 to 8.25% for FY 2025-26.
Why SSY and SCSS Pay More Than PPF
Small savings rates aren't set arbitrarily — they follow a formula benchmarked to government bond yields of similar maturity, with the government adding a small spread for certain social-priority schemes. SSY (for a girl child's education/marriage) and SCSS (for senior citizens) carry a policy-driven premium over the formula rate, which is why both consistently pay more than PPF despite similar or longer lock-in periods.
PPF's 7.1% has stayed exactly there for a long stretch of quarters even as SSY and SCSS have occasionally moved — a reflection of how the two are benchmarked slightly differently, not an error or oversight.
Run this for your own numbers
See How Your 80C Investments Affect Your Tax →Where These Fit in Your Tax-Saving Plan
PPF, SSY, and 5-year NSC all qualify for Section 80C deduction (up to ₹1.5 lakh combined, across all 80C instruments) — but only under the old tax regime. If you've moved to the new regime, none of these deductions apply to your tax bill, though the schemes themselves still pay their stated interest rate regardless of which regime you file under.
PPF interest and maturity amount are entirely tax-free (EEE status) under both regimes. SSY is also EEE — tax-free investment, tax-free interest, tax-free withdrawal. This tax-free status is separate from, and in addition to, the Section 80C deduction — it applies regardless of which regime you're in.
What Most People Get Wrong
"Small savings rates change every April like the financial year." They're reviewed every quarter — April-June, July-September, October-December, January-March — not once a year. The rate you locked into your PPF calculation in April may no longer be the current quarter's rate, though PPF specifically applies the prevailing rate to your balance each quarter regardless of when you opened the account.
"A 1% rate difference doesn't matter much." Over short horizons, it doesn't. Over PPF's 15-year lock-in or SSY's ~21-year horizon, annual compounding turns a 1.1 percentage-point gap (SSY's 8.2% vs PPF's 7.1%) into a meaningfully different maturity amount on identical monthly contributions — often a difference in the double-digit percentage range on the final corpus.
Frequently Asked Questions
What is the PPF interest rate for 2026?
7.1% per annum, unchanged for the July–September 2026 quarter — the ninth consecutive quarter without a change. PPF interest is calculated monthly on the lowest balance between the 5th and last day of the month, and credited annually.
What is the EPF interest rate for FY 2025-26?
8.25% per annum, up from 8.15% in FY 2024-25. This rate is declared by EPFO (not the same quarterly small savings review) and credited to your EPF account once formally notified by the Labour Ministry.
Why does Sukanya Samriddhi Yojana pay more interest than PPF?
SSY carries a policy-driven premium over the standard small savings formula rate as a social-priority scheme (for a girl child's future), which is why it consistently pays roughly 1 percentage point more than PPF despite both being government-backed, long-lock-in instruments.
Are PPF and Sukanya Samriddhi returns tax-free?
Yes, both have EEE (Exempt-Exempt-Exempt) status — the investment qualifies for Section 80C deduction (old regime only), the interest earned is tax-free, and the maturity withdrawal is tax-free. This tax-free treatment on interest and maturity applies regardless of whether you're on the old or new tax regime.
How often does the government revise small savings interest rates?
Every quarter — for periods April-June, July-September, October-December, and January-March. The Finance Ministry announces rates for the upcoming quarter shortly before it begins, based on a formula linked to government bond yields of comparable maturity.
When did you last actually compare what your PPF, EPF, and any post office deposits are individually earning — or have you been assuming they're all roughly the same?