Will PPF rate increase in 2026?

Unlikely in the near term. PPF rate is linked to 10-year G-sec yields with a 25 basis point spread. With RBI cutting rates, G-sec yields have declined, making a PPF rate hike improbable. The rate has been stable at 7.1% since January 2023 and is expected to stay unchanged for at least the next 1-2 quarters.

Which small savings scheme gives the highest return?

Sukanya Samriddhi Yojana (8.2%) and Senior Citizen Savings Scheme (8.2%) currently offer the highest rates among government-backed schemes. However, SSY is only for girl children under 10, and SCSS is only for citizens above 60. For general investors, PPF at 7.1% (fully tax-free) offers the best risk-adjusted post-tax return.

Should I invest in PPF or bank FD?

PPF wins for long-term savings. PPF at 7.1% is fully tax-free (EEE status), equivalent to ~10.2% pre-tax at 30% bracket. Bank FDs at 7% are taxable — effective return is ~4.9% at 30% bracket. PPF gives more than double the post-tax return. Use our PPF Calculator to see exact maturity projections.

POLICY UPDATE2026-04-24• By Ashutosh Khulbe

PPF, SSY, NSC Rates Unchanged for April–June 2026 — Full Rate Card Inside

The Finance Ministry has kept interest rates on all small savings schemes unchanged for the April–June 2026 quarter (Q1 FY 2026-27). This means PPF continues at 7.1%, Sukanya Samriddhi at 8.2%, Senior Citizen Savings Scheme at 8.2%, and NSC at 7.7%. Rates have been stable since January 2023.

Small savings rates are reviewed quarterly by the government based on G-sec yields. Despite RBI's recent repo rate cut to 6.0%, the government has chosen to maintain small savings rates — a politically popular decision given that millions of middle-class Indians rely on PPF, SSY, and post office deposits for guaranteed returns.

For investors, this stability is good news. PPF at 7.1% tax-free remains equivalent to approximately 10.2% pre-tax return at the 30% tax bracket — significantly better than bank FDs where interest is fully taxable. Sukanya Samriddhi at 8.2% continues to be the highest-yielding government-backed scheme available.

🎯Quick rate card — April to June 2026

PPF: 7.1% (compounded annually). Sukanya Samriddhi: 8.2%. Senior Citizen Savings: 8.2%. NSC: 7.7%. KVP: 7.5% (matures in 115 months). Post Office Monthly Income: 7.4%. Post Office 5-year FD: 7.5%. Post Office 1-year FD: 6.9%. Savings account: 4.0%.

PPF, SSY, NSC Rates Unchanged for April–June 2026 — Full Rate Card Inside

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