Small Savings Scheme Interest Rates

Why in News

The Ministry of Finance kept interest rates on all Small Savings Schemes (SSS) unchanged for Q2 FY2026-27, covering:

1 July 2026 – 30 September 2026

This was the 9th consecutive quarter without a revision.

Who Reviews the Rates?

Department of Economic Affairs — Ministry of Finance

Rates have been reviewed quarterly since 2016.

Important Committee

Shyamala Gopinath Committee

Associated with the methodology for determining small-savings interest rates.

Benchmark Principle

Small-saving rates should generally remain:

25–100 basis points above relevant government bond yields.

Why Small Savings Matter

They help:

• Mobilise household savings
• Provide relatively secure investment avenues
• Finance government borrowing
• Support long-term household financial planning

Examples to Remember

• Sukanya Samriddhi Account
• Post Office Term Deposits
• Other government-backed small-savings instruments

UPSC Concept

1 basis point = 0.01 percentage point

Therefore:

100 basis points = 1 percentage point

GS Link

GS III: Economy, Savings, Financial Markets