Post Office Interest Rates 2026: Complete Comparison of All Schemes
Post Office savings schemes — collectively called National Small Savings Schemes (NSSS) — are the safest investment options in India, backed by the full sovereign guarantee of the Government of India. The Ministry of Finance revises interest rates every quarter. This guide lists every scheme\'s current rate, tax status, minimum investment, and who should invest in each.
For the period January–March 2026 (Q4 FY 2025-26), rates on most schemes remain unchanged from the previous quarter. SCSS and SSY continue to offer the highest rate at 8.2% — more competitive than most bank fixed deposits.
Complete Post Office Interest Rates Table (2026)
| Scheme | Rate (p.a.) | Tenure | Min. Investment | 80C? |
|---|---|---|---|---|
| SCSS | 8.2% | 5 years | ₹1,000 | ✅ Yes |
| SSY | 8.2% | 21 years | ₹250/year | ✅ Yes (EEE) |
| NSC | 7.7% | 5 years | ₹1,000 | ✅ Yes |
| KVP | 7.5% | 115 months | ₹1,000 | ❌ No |
| 5-Year TD (FD) | 7.5% | 5 years | ₹1,000 | ✅ Yes |
| POMIS | 7.4% | 5 years | ₹1,000 | ❌ No |
| PPF | 7.1% | 15 years | ₹500/year | ✅ Yes (EEE) |
| 3-Year TD | 7.1% | 3 years | ₹1,000 | ❌ No |
| 2-Year TD | 7.0% | 2 years | ₹1,000 | ❌ No |
| 1-Year TD | 6.9% | 1 year | ₹1,000 | ❌ No |
| RD | 6.7% | 5 years | ₹100/month | ❌ No |
| POSA (Savings A/c) | 4.0% | Ongoing | ₹500 | ❌ No |
Tax Treatment of Post Office Scheme Interest
| Scheme | Interest Taxable? | TDS by Post Office? | 80C on Investment? |
|---|---|---|---|
| PPF | No — fully exempt (EEE) | No | Yes |
| SSY | No — fully exempt (EEE) | No | Yes |
| NSC | Yes, but deemed reinvested (80C) | No | Yes |
| SCSS | Yes — taxable at slab | Yes (if >₹50,000/year) | Yes |
| POMIS | Yes — taxable at slab | No | No |
| KVP | Yes — taxable at slab | No | No |
| TD (5-year FD) | Yes — taxable at slab | No | Yes (5-yr only) |
| RD | Yes — taxable at slab | No | No |
Best Scheme by Investor Profile
Senior Citizens (Age 60+): SCSS at 8.2%
The Senior Citizen Savings Scheme offers the highest rate among all post office schemes. At 8.2% paid quarterly, a ₹5 lakh investment generates ₹10,250 every quarter (₹41,000/year) as regular income. Maximum investment: ₹30 lakh single / ₹60 lakh joint. 80C benefit on investment. Tenure: 5 years, extendable by 3 years.
Parents of a Girl Child: SSY at 8.2% (EEE)
The Sukanya Samriddhi Yojana is the only scheme matching SCSS at 8.2% with full EEE tax exemption. ₹1.5 lakh invested annually for 15 years (PPF-style) grows to over ₹65 lakh at maturity (21 years from account opening). Completely tax-free at every stage. Must open before girl turns 10.
General Investors (Tax-Saving, 5 Years): NSC at 7.7%
The National Savings Certificate at 7.7% compounds annually. ₹1 lakh grows to ₹1,44,903 in 5 years. 80C benefit on both the investment AND deemed reinvested interest each year. No premature withdrawal allowed — best for investors who don\'t need liquidity.
Monthly Income Investors: POMIS at 7.4%
The Post Office Monthly Income Scheme pays 7.4% as monthly interest. ₹9 lakh (maximum single) generates approximately ₹5,550/month for 5 years. No TDS deducted. Principal returned at maturity. Best for retirees needing monthly income supplement.
Long-Term Tax-Free Growth: PPF at 7.1% (EEE)
The Public Provident Fund at 7.1% with full EEE status is unbeatable for 15-year wealth creation. Even at 7.1%, the tax-free compounding means the effective post-tax return for a 30% tax bracket investor is equivalent to earning ~10.1% in a taxable instrument. Invest ₹1.5 lakh/year for 15 years and receive ~₹40.7 lakh tax-free.
Rate History: FY 2024-25 vs FY 2025-26
| Scheme | FY 2024-25 | FY 2025-26 | Change |
|---|---|---|---|
| SCSS | 8.2% | 8.2% | — |
| SSY | 8.2% | 8.2% | — |
| NSC | 7.7% | 7.7% | — |
| KVP | 7.5% | 7.5% | — |
| POMIS | 7.4% | 7.4% | — |
| PPF | 7.1% | 7.1% | — |
| RD (5-year) | 6.7% | 6.7% | — |
Rates have remained stable across multiple quarters, providing predictability for investors. The government has maintained SCSS and SSY above 8% to support senior citizens and girl child welfare schemes.
Post Office Schemes vs Bank Fixed Deposits (2026)
As of March 2026, top bank FD rates for general investors range from 6.5% to 7.25% for 5-year deposits. For senior citizens, banks offer 7.0%–7.75%. Compare:
- SCSS 8.2% vs bank senior citizen FD ~7.5% — post office wins by 0.7 percentage points with quarterly payout and 80C benefit
- NSC 7.7% vs bank 5-year FD ~7.0% — post office wins by 0.7 points with additional 80C on accrued interest
- PPF 7.1% (EEE) vs bank FD ~7.0% (taxable) — post office wins significantly on post-tax basis; a 30% taxpayer needs a bank FD at ~10.1% to match PPF\'s effective return
- KVP 7.5% vs bank FD ~7.0% — post office wins; doubles money in 115 months without any action needed
When Are Post Office Rates Revised?
The Ministry of Finance announces revised rates before the start of each quarter:
- Q1 (April–June): Announced in late March
- Q2 (July–September): Announced in late June
- Q3 (October–December): Announced in late September
- Q4 (January–March): Announced in late December
For schemes like NSC, KVP, and TD — the rate at the time of purchase is locked in for the full tenure. For PPF, SCSS, and POMIS — the rate is subject to quarterly revision.
Frequently Asked Questions
SCSS (Senior Citizen Savings Scheme) and SSY (Sukanya Samriddhi Yojana) both offer 8.2% p.a. — the highest among all post office schemes. SCSS is only for senior citizens aged 60 and above; SSY is only for girl children below 10 years. For general investors (age 18–59), NSC at 7.7% and KVP at 7.5% offer the next-best rates.
It depends on the scheme. NSC (5-year) and Post Office FD rates are locked in for the full tenure once invested. KVP rate is also fixed at purchase. However, PPF, SCSS, POMIS, and RD rates are revised quarterly by the Ministry of Finance — the revised rate applies to existing investors from the next quarter onwards. So a PPF investor today at 7.1% may see the rate change in the next quarter.
The Ministry of Finance revises Small Savings Scheme rates every quarter: Q1 (April–June) rates are announced in late March; Q2 (July–September) in late June; Q3 (October–December) in late September; Q4 (January–March) in late December. Rates have remained unchanged for several consecutive quarters for most schemes.
It depends on the scheme. PPF and SSY have EEE (Exempt-Exempt-Exempt) status — all three stages (investment, interest, maturity) are tax-free. SCSS, POMIS, TD, and RD interest is fully taxable at your income slab rate. NSC interest is taxable but deemed reinvested and qualifies for 80C deduction each year. Post Office Savings Account interest up to Rs 10,000/year is exempt under Section 80TTA (Rs 50,000 for seniors under 80TTB).
NRIs cannot invest in most Post Office small savings schemes. PPF accounts cannot be opened by NRIs (existing accounts can continue till maturity but earn only the savings account rate after the account holder becomes NRI). NSC, KVP, SCSS, SSY, and POMIS are also not available to NRIs. Post Office schemes are exclusively for resident Indians. NRIs can consider NRE/NRO fixed deposits at banks instead.
Best for girl child: SSY 8.2% (EEE — fully tax-free)
Best long-term tax-free: PPF 7.1% (EEE — 15-year compounding)
Best to double money: KVP 7.5% (doubles in 115 months, no action needed)
Best monthly income: POMIS 7.4% (no TDS, principal returned)