The Ministry of Finance has announced that deposits made under the Special Deposit Scheme (SDS) for Non-Government Provident, Superannuation and Gratuity Funds will continue to earn interest at the rate of 7.1% per annum during the quarter from July 1, 2026 to September 30, 2026.
The notification was issued by the Department of Economic Affairs on July 3, 2026, under File No. 5(3)-B(PD)/2023. The revised rate takes effect from July 1, 2026 and will remain applicable throughout the second quarter of the financial year 2026-27.
The Special Deposit Scheme was originally introduced through a notification dated June 30, 1975, to provide a secure investment avenue for Non-Government Provident Funds, Superannuation Funds and Gratuity Funds. The scheme enables such funds to park their surplus amounts with the Government while earning a notified rate of return.
As per the latest notification, all eligible deposits made under the scheme will earn interest at 7.1% per annum during the specified period. The government reviews and notifies the interest rate for the scheme periodically, taking into account prevailing economic and market conditions.
The continuation of the 7.1% rate offers stability and predictability for trustees and administrators of provident, superannuation and gratuity funds, helping them manage long-term employee benefit obligations more effectively.
The notification was signed by Vyasan R., Joint Secretary, Department of Economic Affairs , and confirms that the notified rate is effective from July 1, 2026.
Official copy of the notification is as follows
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