PPF, SSY, SCSS, NSC and KVP: small savings schemes compared
Small savings schemes are run by the Government of India through post offices and banks. They carry sovereign backing, and their rates are reviewed every quarter.
Rates for October to December 2026
The Finance Ministry left all rates unchanged for this quarter.
| Scheme | Rate | Term |
|---|---|---|
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Until the girl turns 21 |
| Senior Citizens Savings Scheme (SCSS) | 8.2% | 5 years |
| National Savings Certificate (NSC) | 7.7% | 5 years |
| Kisan Vikas Patra (KVP) | 7.5% | Doubles in 115 months |
| Monthly Income Scheme | 7.4% | 5 years |
| Public Provident Fund (PPF) | 7.1% | 15 years |
| 5-year recurring deposit | 6.7% | 5 years |
| Post office savings account | 4.0% | None |
Which scheme for which need
PPF is the long-term all-rounder. Deposit ₹500 to ₹1.5 lakh a year for 15 years; interest and maturity are tax-free. The rate floats, so a change applies to your whole balance. Use the PPF calculator.
SSY is for a daughter’s education or marriage. The account must be opened before she turns 10, takes up to ₹1.5 lakh a year for 15 years and matures when she is 21. It pays the highest rate in the family and is tax-free.
SCSS gives people aged 60 and above a quarterly income. The limit is ₹30 lakh per person, and the rate is fixed for the five-year term when you invest. The interest is taxable.
NSC is a five-year certificate with the rate locked at purchase. Interest compounds and is paid at maturity, and it is taxable.
KVP simply doubles your money over a fixed period, currently 115 months. It has no tax benefit and suits people who want certainty without a bank.
Floating versus locked rates
PPF and SSY pay whatever rate is notified each quarter. SCSS, NSC, KVP, time deposits and the monthly income scheme lock the rate on the day you invest. If you expect rates to fall, locking in has value; if you expect them to rise, shorter terms keep you flexible.
The tax angle
Deductions for PPF, SSY, NSC and SCSS deposits are available only under the old regime. The tax-free status of PPF and SSY interest applies in both regimes, which matters more for long holding periods. Compare any taxable scheme after tax: 8.2% at a 30% slab is about 5.7%.
Limits to remember
These schemes are safe and simple, but they are not liquid, and most will not beat equity over long periods. They fit the stable part of a plan alongside growth assets for goals that are many years away.
Rates are as notified for the quarter ending 31 December 2026 and are reviewed quarterly. Confirm current rates and rules with your post office or bank.