Sudhir SinghUpdated on June 19, 2026
The Department of Posts runs one of the largest and most trusted small savings networks in India. With over 1.5 lakh post offices, many in areas where banks have not reached, Post Office savings schemes remain a primary financial tool for crores of Indian households. Every scheme carries a full government guarantee, meaning your money is as safe as it can possibly be, regardless of the amount invested.
Here is a side-by-side comparison of all 9 schemes currently available, so you can pick the one that matches your savings goal.
Post Office Savings Account (POSA)
- Interest rate: 4% per annum.
- Minimum balance: Rs. 500 (no withdrawal allowed if balance falls below this).
- Works like a regular savings bank account, with chequebook and ATM card facility available in core banking-enabled post offices.
- Interest up to Rs. 10,000 per year is tax-exempt under Section 80TTA.
Post Office Recurring Deposit (RD)
- Interest rate: 6.7% per annum, compounded quarterly.
- Fixed 5-year tenure, minimum monthly deposit Rs. 100.
- Best for building a savings habit with a fixed monthly commitment.
Post Office Time Deposit (TD / Fixed Deposit)
| Tenure | Interest Rate |
|---|---|
| 1 Year | 6.9% |
| 2 Years | 7.0% |
| 3 Years | 7.1% |
| 5 Years | 7.5% (Section 80C eligible) |
Works like a bank fixed deposit. Only the 5-year TD qualifies for the Rs. 1.5 lakh deduction under Section 80C.
Monthly Income Scheme (MIS)
- Interest rate: 7.4% per annum, paid out monthly.
- Maximum investment: Rs. 9 lakh (single account), Rs. 15 lakh (joint account).
- Tenure: 5 years.
- Best for retirees or anyone needing a regular monthly income stream without touching the principal.
Senior Citizen Savings Scheme (SCSS)
- Interest rate: 8.2% per annum, paid quarterly.
- Eligibility: 60 years and above (55+ for retired defence personnel under specific conditions, 50+ for civilian retirees under VRS).
- Maximum investment: Rs. 30 lakh.
- Tenure: 5 years, extendable by 3 years.
- Section 80C eligible up to Rs. 1.5 lakh.
- The highest interest rate among all post office schemes, designed specifically for retirement income security.
Public Provident Fund (PPF)
- Interest rate: 7.1% per annum, compounded annually.
- Tenure: 15 years, extendable in blocks of 5 years.
- Minimum deposit: Rs. 500 per year; maximum Rs. 1.5 lakh per year.
- Fully tax-free (EEE status): contribution, interest, and maturity amount all exempt from tax.
- Section 80C eligible up to Rs. 1.5 lakh.
Sukanya Samriddhi Yojana (SSY)
- Interest rate: 8.2% per annum, compounded annually (currently the highest small savings rate).
- Exclusively for girl children below 10 years.
- Minimum deposit: Rs. 250 per year; maximum Rs. 1.5 lakh per year.
- Matures when the girl turns 21, with partial withdrawal allowed at 18 for higher education or marriage.
- Fully tax-free and Section 80C eligible.
National Savings Certificate (NSC)
- Interest rate: 7.7% per annum, compounded annually but paid only at maturity.
- Fixed 5-year tenure.
- Minimum deposit: Rs. 1,000, no maximum limit.
- Section 80C eligible up to Rs. 1.5 lakh.
- Interest earned (except the final year) is reinvested and also qualifies for 80C, making it slightly more tax-efficient than a regular FD.
Kisan Vikas Patra (KVP)
- Interest rate: 7.5% per annum.
- Money doubles in approximately 115 months (9 years 7 months) at current rates.
- Minimum deposit: Rs. 1,000, no maximum limit.
- No tax benefit on investment; interest is taxable. Useful for a simple, safe doubling-of-money goal without lock-in flexibility needs.
Mahila Samman Savings Certificate (MSSC)
- Interest rate: 7.5% per annum, compounded quarterly.
- Exclusively for women and girls (any age).
- Tenure: 2 years.
- Maximum investment: Rs. 2 lakh.
- Partial withdrawal of up to 40% allowed after 1 year.
- A short-term scheme introduced specifically to encourage savings among women, with a 2-year window currently in effect.
Quick Comparison Table
| Scheme | Best For | Tenure | Rate |
|---|---|---|---|
| POSA | Everyday savings | No fixed term | 4.0% |
| RD | Monthly saving habit | 5 years | 6.7% |
| TD (5 yr) | Tax-saving FD | 5 years | 7.5% |
| MIS | Regular monthly income | 5 years | 7.4% |
| SCSS | Retirement income (60+) | 5 years | 8.2% |
| PPF | Long-term tax-free growth | 15 years | 7.1% |
| SSY | Girl child future | 21 years | 8.2% |
| NSC | 5-year tax-saving lump sum | 5 years | 7.7% |
| KVP | Doubling money, no tax need | ~9.5 years | 7.5% |
| MSSC | Short-term savings for women | 2 years | 7.5% |
Frequently Asked Questions
Which Post Office scheme has the highest interest rate currently?
Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana both currently offer 8.2% per annum, the highest among all post office instruments. However, eligibility for each is restricted: SCSS to those 60+ and SSY exclusively for girl children below 10.
Can I open more than one Post Office scheme at the same time?
Yes. There is no restriction on holding multiple post office schemes simultaneously, as long as you meet the eligibility and contribution limits for each individual scheme. Many families combine PPF for long-term growth, SSY for a daughter, and RD for short-term goals all at once.
Are Post Office scheme interest rates fixed for the entire tenure?
No, for most schemes. Rates are revised quarterly by the Ministry of Finance, but once you invest in PPF, NSC, KVP, SCSS, or TD, the rate applicable on your date of investment generally remains locked for that specific deposit’s tenure, while new deposits in subsequent quarters follow the revised rate. PPF is an exception, where the rate is revised quarterly for the existing balance too.
📩 If you notice any incorrect data in this guide or wish to share additional information, please write to us at info@indiansouls.in.
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