Short answer: the government kept every small savings rate the same for October to December 2026. PPF stays at 7.10%, and SCSS and Sukanya Samriddhi at 8.20%. Bank rates moved more. Some savings account slabs were cut on 1 October, IDFC FIRST raised its rate, and the RBI decides on interest rates on 7 October.
We re-checked every Indian product in our high-interest accounts finder on 4 October 2026. Here is the short version.
What changed
- Small savings unchanged for Q3 FY2026-27, announced on 30 September. It is the tenth quarter in a row without a change.
- RBI repo rate 5.25%, with a decision due on 7 October. Most economists polled expect a rise to 5.50%. If that happens, FD rates and repo-linked savings accounts may rise in the weeks after.
- IDFC FIRST savings now pays 7.00% on balances from ₹3 lakh to ₹25 lakh (from 4 October).
- AU Small Finance Bank savings cut its ₹10 lakh to ₹25 crore slab to 6.50% (from 6.75%) on 1 October.
- RBL Bank kept 6.00% but now pays it only between ₹10 lakh and ₹3 crore.
- Suryoday Small Finance Bank raised its 5-year FD to 8.25% (from 15 August).
- Public sector bank FDs sit at about 6.25% for one year. SBI's 5-year FD is 6.05%.
Current small savings rates (October to December 2026)
| Scheme | Rate | Term |
|---|---|---|
| Senior Citizens Savings Scheme (SCSS) | 8.20% | 5 years |
| Sukanya Samriddhi Yojana (SSY) | 8.20% | 21 years |
| National Savings Certificate (NSC) | 7.70% | 5 years |
| Kisan Vikas Patra (KVP) | 7.50% | 115 months |
| Post Office Time Deposit (5-year) | 7.50% | 5 years |
| Post Office Monthly Income Scheme | 7.40% | 5 years |
| Public Provident Fund (PPF) | 7.10% | 15 years |
| Post Office Recurring Deposit | 6.70% | 5 years |
| Post Office Savings Account | 4.00% | None |
Which ones to look at
- Aged 60 or over: SCSS at 8.20%, paid every quarter, is still the best government-backed income, up to ₹30 lakh.
- Saving for a daughter under 10: Sukanya Samriddhi at 8.20%, tax-free.
- Want a government rate without a small savings cap: the RBI Floating Rate Savings Bond pays 8.05% for July to December 2026 (taxable, 7 years, residents only). State government bonds (SDLs) priced at 7.32-7.91% at the 22 September auction. Both can be bought through RBI Retail Direct; see our RBI Retail Direct guide.
- Fixed deposits: small finance banks pay the most, for example Suryoday at 8.25% for 5 years. Keep each bank under the ₹5 lakh DICGC insurance limit.
- Savings accounts: IDFC FIRST at 7.00% (₹3-25 lakh) is now one of the best rates from a large bank. slice pays the full repo rate (5.25%) on every rupee, so its rate moves with the RBI.
- Be careful with: company FDs such as Bajaj Finance (up to 7.40%) and Shriram Finance (up to 7.50%). They are AAA-rated but not covered by DICGC insurance.
All rates are as published on 4 October 2026 and can change at any time. This is a summary, not financial advice. Compare all 38 Indian products, with slabs and links, in the high-interest accounts finder, and track your PPF, FDs and bonds in Agni Folio.
