Post Office Savings Schemes — Latest Interest Rates

Post Office and Government of India small-savings schemes offer some of the safest fixed-rate returns available to Indian investors. Rates are notified by the Ministry of Finance every quarter and apply uniformly across all post offices and authorised banks.

This page lists every active scheme — PPF, EPF-adjacent PPF, SCSS, NSC, Sukanya Samriddhi, Kisan Vikas Patra, Post Office Recurring Deposit, Time Deposits, Monthly Income Scheme, and the standard Post Office Savings Account — with current interest rates, eligibility, lock-in, and tax treatment.

TL;DR

• Highest current rate: Sukanya Samriddhi Yojana and Senior Citizens Savings Scheme at 8.2% — both come with eligibility restrictions (girl child under 10; age 60+ respectively).
• Highest universally-available rate: National Savings Certificate at 7.7% for a 5-year lock-in, with Section 80C deduction.
• Tax-free at every stage (EEE): PPF and Sukanya Samriddhi only — contribution, interest, and maturity are all exempt.
• Section 80C eligible: PPF, SCSS, NSC, SSY, and Post Office Time Deposit (5-year only).
• Liquid option: Post Office Savings Account at 4% — first ₹10,000 of interest is tax-free per year under Section 80TTA.

Rates below are for the current quarter (Q1 FY26-27 / April–June 2026). Always verify against indiapost.gov.in before investing.

All small-savings rates — current quarter

| Scheme | Rate (p.a.) | Tenure | Lock-in | Min | Max | Tax | | --- | --- | --- | --- | --- | --- | --- | | Sukanya Samriddhi Yojana (SSY) | 8.2% | 21 years | 21 yr | ₹250 | ₹1.5 L/yr | EEE | | Senior Citizens Savings Scheme (SCSS) | 8.2% | 5 years (extendable +3) | 5 yr | ₹1,000 | ₹30 L | 80C | | National Savings Certificate (NSC) | 7.7% | 5 years | 5 yr | ₹1,000 | — | 80C | | Kisan Vikas Patra (KVP) | 7.5% | ~115 months (doubles) | — | ₹1,000 | — | Taxable | | Post Office Time Deposit — 5 year | 7.5% | 5 years | 5 yr | ₹1,000 | — | 80C | | Post Office Monthly Income Scheme (MIS) | 7.4% | 5 years | 5 yr | ₹1,000 | ₹9 L / ₹15 L joint | Taxable | | Public Provident Fund (PPF) | 7.1% | 15 years (extendable) | 15 yr | ₹500/yr | ₹1.5 L/yr | EEE | | Post Office Time Deposit — 3 year | 7.1% | 3 years | 3 yr | ₹1,000 | — | Taxable | | Post Office Time Deposit — 2 year | 7.0% | 2 years | 2 yr | ₹1,000 | — | Taxable | | Post Office Time Deposit — 1 year | 6.9% | 1 year | 1 yr | ₹1,000 | — | Taxable | | Post Office Recurring Deposit (RD) | 6.7% | 5 years (60 monthly deposits) | 5 yr | ₹100/mo | — | Taxable | | Post Office Savings Account | 4.0% | Liquid | — | ₹500 | — | Taxable (₹10k/yr exempt under 80TTA) |

How rates are set

Small-savings rates are revised quarterly by the Department of Economic Affairs, Ministry of Finance — typically announced on the last working day of March, June, September, and December for the following quarter. The formula is loosely linked to the previous quarter's average yield on government securities of comparable maturity, with a spread that the government can adjust at its discretion.

Most quarters the rates stay flat — quarterly revisions are common in policy but rare in actual rate movement. PPF in particular has been at 7.1% since FY20-21.

Scheme details

Sukanya Samriddhi Yojana (SSY) — 8.2%

Open in the name of a girl child under age 10. Up to two accounts per family (one per girl child). Tax-free at every stage (EEE). Matures at age 21 or on the girl's marriage after age 18. Excellent for funding higher education or marriage corpus, but locked away for ~two decades.

Senior Citizens Savings Scheme (SCSS) — 8.2%

For Indian residents aged 60+ (or 55-60 if retired with superannuation). Maximum deposit of ₹30 lakh in one or more accounts. Interest paid quarterly — useful for retirees who need cash flow. Section 80C deduction on principal; interest fully taxable with TDS above ₹50,000/yr.

National Savings Certificate (NSC) — 7.7%

5-year fixed-tenure certificate, available at any post office. Compounded annually but paid at maturity. Each year's accrued interest is itself eligible for 80C deduction (reinvested by default). No upper limit on investment.

Kisan Vikas Patra (KVP) — 7.5%

Doubles your money in approximately 115 months (9 years 7 months) at the current rate. No 80C benefit; interest fully taxable. Useful only as a long-horizon savings instrument when 80C is already exhausted and you want sovereign-guaranteed returns.

Public Provident Fund (PPF) — 7.1%

15-year lock-in, extendable in 5-year blocks. ₹1.5 lakh annual cap. Tax-free at every stage (EEE) — the only scheme that matches Sukanya for tax efficiency without an eligibility restriction. Partial withdrawals allowed from year 7. The standard "boring core" of an Indian savings portfolio.

Post Office Time Deposits — 6.9% to 7.5%

Equivalent to bank fixed deposits but at post office rates. 1, 2, 3, and 5-year tenures. Only the 5-year TD qualifies for Section 80C. Interest paid annually but compounded quarterly. Bank FDs from major lenders typically beat 1–3 year POTD rates, but the 5-year POTD often beats bank tax-saver FDs.

Post Office Monthly Income Scheme (MIS) — 7.4%

5-year fixed-tenure scheme that pays interest monthly. ₹9 lakh single / ₹15 lakh joint cap. Useful for retirees and others needing predictable monthly cash flow. Interest fully taxable; no 80C benefit.

Post Office Recurring Deposit (RD) — 6.7%

Monthly deposit scheme — minimum ₹100/month — for 60 months (5 years). Compounded quarterly. Skipping deposits attracts penalties; the discipline requirement makes this best suited to salaried investors who treat it like an EMI. Interest fully taxable.

Post Office Savings Account — 4.0%

Liquid savings account at any post office. ₹500 minimum balance. The 4% rate sits between most bank savings accounts (~2.7-3.5%) and small finance banks (~6-7%). First ₹10,000 of interest each year is tax-free under Section 80TTA.

Frequently asked questions

What is the current PPF interest rate in India?+

The Public Provident Fund (PPF) interest rate is currently 7.1% per annum for the April–June 2026 quarter, as notified by the Department of Economic Affairs, Ministry of Finance. PPF rates are revised quarterly but have remained at 7.1% since FY20-21. Interest is compounded annually and is fully tax-free at every stage (EEE).

What is the Post Office RD interest rate for 2026?+

The Post Office 5-Year Recurring Deposit (RD) interest rate is 6.7% per annum for the current quarter, compounded quarterly. Minimum monthly deposit is ₹100. Interest is fully taxable. Bank RDs from major lenders sometimes offer slightly higher rates but require larger minimums.

Which Post Office scheme has the highest interest rate?+

The Sukanya Samriddhi Yojana (for a girl child under 10) and the Senior Citizens Savings Scheme (for residents aged 60+) both offer 8.2% per annum — the highest current rates. For universally-available schemes, the National Savings Certificate (NSC) and Post Office 5-Year Time Deposit both pay 7.7% and 7.5% respectively and qualify for Section 80C deduction.

Is Post Office RD better than Bank RD?+

It depends on the rate offered by your bank. Post Office RD is fixed at 6.7% for 5 years. Major banks typically offer 6.5–7.25% for similar tenures, with some small finance banks going above 8% for senior citizens. Post Office RD wins on safety (sovereign-backed) and uniform rates across India, while bank RDs sometimes win on rate and digital convenience. Both are taxable on interest.

Are Post Office savings schemes tax-free?+

Only PPF and Sukanya Samriddhi Yojana are fully tax-free (EEE — contribution, interest, and maturity all exempt). SCSS, NSC, and the 5-year Post Office Time Deposit allow a Section 80C deduction on principal but the interest is taxable. KVP, MIS, RD, 1-/2-/3-year TDs, and the Savings Account all have taxable interest with no upfront 80C benefit.

Is PPF or SCSS better for senior citizens?+

SCSS is generally better for retirees who need cash flow — it pays 8.2% interest quarterly, has a 5-year tenure (extendable +3), and allows up to ₹30 lakh investment. PPF locks money in for 15 years and pays interest annually (compounded). For a retiree's regular income needs, SCSS wins. PPF is better suited to senior citizens who don't need the income immediately and want a tax-free corpus to pass on.

How often do small-savings rates change?+

Rates are reviewed every quarter by the Ministry of Finance — announced in the last week of March, June, September, and December for the upcoming quarter. While reviews happen quarterly, actual rate changes are less frequent. PPF has held at 7.1% since FY20-21, and most other schemes change at most once a year in practice.

Decision framework

Picking between schemes is rarely about chasing the absolute highest rate — most differences are within 1–1.5 percentage points. Instead, anchor on what you actually need:

• Tax-saving for the year (Section 80C): PPF if you want EEE and 15-year discipline, NSC if you want a 5-year lock with annual reinvestment, ELSS mutual funds if you want shorter (3-year) lock and accept equity volatility.
• Retiree cash flow: SCSS first (highest rate + quarterly payouts), then MIS for the rest.
• Long-term corpus for a girl child: Sukanya Samriddhi — the 8.2% EEE rate is unbeatable for that purpose.
• Park money for 1–2 years: 1-year or 2-year POTD competes with bank FDs; pick whichever offers the better rate at the time.
• Short-term liquid: Post Office Savings Account, but small finance banks usually beat it.

Use our PPF Calculator and FD Calculator to project the actual rupee value of each option for your scenario.

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