Confirm Small Savings Scheme Rates
The government has announced the interest rates for small savings schemes for the third quarter of the financial year 2026-27, which runs from October 1 to December 31, 2026. For this period, rates have been kept unchanged. This means the Public Provident
Fund (PPF) will continue to earn 7.1%, while the Sukanya Samriddhi Yojana (SSY) and Senior Citizen Savings Scheme (SCSS) will both offer 8.2%. The National Savings Certificate (NSC) also holds steady at 7.7%. Knowing these rates helps you decide where to park any surplus funds for tax-saving or long-term goals. Since the rates are fixed for the quarter, you can plan your investments with certainty.
Brace for Festive Season Spending
October often marks the beginning of major festive spending with Dussehra and Diwali preparations. To avoid financial strain later, it is crucial to create a specific budget for these expenses now. List all potential costs, including gifts, travel, home decoration, and celebrations. Experts suggest creating a 'festive budget' and sticking to it to prevent impulse buys driven by sales and offers. Rather than dipping into your core savings or stopping your Systematic Investment Plans (SIPs), consider setting aside funds in advance for these expenses. Using credit cards wisely and avoiding too many 'Buy Now, Pay Later' schemes can prevent debt from piling up long after the festivities are over.
Monitor the RBI's Monetary Policy
The Reserve Bank of India's Monetary Policy Committee (MPC) is scheduled to meet from October 5 to 7, with the policy decision to be announced on October 7. This meeting is being closely watched as there are expectations of a potential repo rate hike for the first time since February 2023, driven by rising inflation and global economic pressures. Any change in the repo rate directly impacts the interest rates on loans (like home and car loans) and can also affect the returns on fixed deposits. While you cannot control the outcome, being aware of the decision will help you anticipate changes in your EMI outflows or FD returns.
Review Tax-Related Deadlines
October is a significant month for tax compliance, especially for businesses and professionals who require a tax audit. The deadline for furnishing the tax audit report for the Assessment Year 2026-27 has been extended to October 21, 2026. Consequently, the ITR filing deadline for this category of taxpayers has been moved to November 21, 2026. Other key dates include October 7 for depositing TDS/TCS for September and October 30 for furnishing Form 141 for certain TDS deductions. Even if these do not apply to you directly, October is an excellent time to start consolidating documents for your own tax-saving investments (under Section 80C etc.) for the financial year.
Assess Your Investment Portfolio
The start of the second half of the financial year is an opportune moment to review your investment portfolio. Take stock of how your mutual funds, stocks, and other investments have performed over the last six months. This is not about making drastic changes based on short-term market movements but ensuring your portfolio remains aligned with your long-term financial goals. Check if your asset allocation is still balanced or if it needs rebalancing. A periodic review helps you stay disciplined and ensures your investments are on track to meet your objectives, whether it is for retirement, a child's education, or wealth creation.
Check Your Emergency Fund
Your emergency fund is your primary financial safety net, designed to cover three to six months of essential living expenses. If you had to dip into it recently, October is a good time to create a plan to replenish it. If your income or expenses have changed significantly over the past year, you may also need to reassess the size of your emergency fund. With festive spending on the horizon, ensuring your emergency fund is intact provides peace of mind that you can handle unexpected financial shocks without derailing your budget or long-term goals.
