The Ministry of Finance has notified an interest rate of 7.1% per annum on deposits made under the Special Deposit Scheme (SDS) for Non-Government Provident, Superannuation and Gratuity Funds for the quarter from 1 October 2026 to 31 December 2026.
The notification was issued by the Department of Economic Affairs, Ministry of Finance, on 5 October 2026.
7.1% Interest Rate Applicable From October 1
According to the notification, deposits under the Special Deposit Scheme will earn interest at 7.1% for the period beginning 1 October 2026 and ending 31 December 2026.
The rate is effective from 1 October 2026, irrespective of the date on which the notification was issued.
The decision has been notified under F. No. 5(3)-B(PD)/2023.
What is the Special Deposit Scheme?
The Special Deposit Scheme was introduced by the Ministry of Finance in 1975 through a notification dated 30 June 1975. It applies to deposits made by eligible Non-Government Provident Funds, Superannuation Funds and Gratuity Funds.
The scheme provides an avenue for such funds to place eligible deposits and earn a notified rate of interest.
Interest Rate for October to December 2026
The key details of the latest notification are:
| Particulars | Details |
|---|---|
| Scheme | Special Deposit Scheme |
| Eligible funds | Non-Government Provident, Superannuation and Gratuity Funds |
| Interest rate | 7.1% |
| Applicable period | 1 October 2026 to 31 December 2026 |
| Effective from | 1 October 2026 |
| Notification date | 5 October 2026 |
| Issuing authority | Ministry of Finance, Department of Economic Affairs |
Why the Notification Matters
The quarterly notification is relevant for trustees and administrators managing eligible provident, superannuation and gratuity funds, as the notified rate determines the interest applicable to deposits under the Special Deposit Scheme during the specified period.
Funds covered by the scheme should take note of the 7.1% rate for the October-December 2026 quarter while maintaining their investment and accounting records.
The notification was issued by Vyasan R., Joint Secretary, Department of Economic Affairs, Ministry of Finance.
Key Takeaway
The Government has fixed the Special Deposit Scheme interest rate at 7.1% for the quarter ending 31 December 2026 . The rate applies retrospectively from 1 October 2026 and will remain in force until 31 December 2026.
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