Post Office Savings Schemes — Complete Guide (2026)

India Post offers some of the safest investment options in the country. These small savings schemes are backed by the Government of India, making them virtually risk-free. Whether you want steady monthly income, long-term wealth building, or tax savings — there is a post office scheme for you.

This guide covers all major post office savings schemes, their current interest rates (January–March 2026), eligibility, tax benefits, and how to open an account.

All Post Office Savings Schemes at a Glance

Note: Interest rates are reviewed quarterly by the Government. Check the NSI India website for the latest rates.

Scheme-wise Details

1. Public Provident Fund (PPF)

PPF is one of the most popular long-term savings schemes in India. It offers guaranteed, tax-free returns.

• Interest Rate: 7.10% per annum (compounded yearly)
• Tenure: 15 years (extendable in 5-year blocks)
• Who Can Open: Any Indian resident (one account per person)
• Minimum Deposit: ₹500 per year
• Maximum Deposit: ₹1.5 lakh per year
• Tax Benefit: EEE (Exempt-Exempt-Exempt) — investment, interest, and maturity amount are all tax-free under Section 80C
• Partial Withdrawal: Allowed from the 7th year
• Loan Facility: Available between 3rd and 6th year

👉 Read our detailed PPF guide and NPS vs PPF comparison.

2. National Savings Certificate (NSC)

NSC is a fixed-income investment with guaranteed returns and tax benefits.

• Interest Rate: 7.70% per annum (compounded yearly, paid at maturity)
• Tenure: 5 years
• Who Can Open: Any Indian resident (no limit on number of certificates)
• Minimum Investment: ₹1,000 (multiples of ₹100)
• Maximum Investment: No upper limit
• Tax Benefit: Investment qualifies for Section 80C deduction up to ₹1.5 lakh. Interest earned in the first 4 years is deemed reinvested and qualifies for 80C.
• Can be pledged as collateral for bank loans

3. Kisan Vikas Patra (KVP)

KVP doubles your money in a fixed period based on the prevailing interest rate.

• Interest Rate: 7.50% per annum (compounded yearly)
• Maturity Period: 115 months (9 years 7 months) — your money doubles
• Who Can Open: Any Indian resident (adult individuals, joint accounts, or on behalf of a minor)
• Minimum Investment: ₹1,000
• Maximum Investment: No upper limit
• Tax Benefit: No Section 80C benefit. Interest is taxable.
• Premature Closure: Allowed after 2 years 6 months
• Can be pledged as security with banks

4. Senior Citizen Savings Scheme (SCSS)

SCSS offers the highest interest rate among all post office schemes and is designed for retirees.

• Interest Rate: 8.20% per annum (paid quarterly)
• Tenure: 5 years (extendable by 3 years)
• Who Can Open: Indian residents aged 60+ (or 55+ for retired government/defence employees)
• Minimum Investment: ₹1,000
• Maximum Investment: ₹30 lakh
• Tax Benefit: Investment qualifies for Section 80C. Interest up to ₹50,000 is exempt under Section 80TTB for senior citizens.
• TDS: Deducted if interest exceeds ₹50,000 per year

👉 Read our detailed Senior Citizen Savings Scheme guide.

5. Sukanya Samriddhi Yojana (SSY)

SSY is a government-backed savings scheme for the girl child, offering the highest interest rate along with full tax exemption.

• Interest Rate: 8.20% per annum (compounded yearly)
• Tenure: 21 years from the date of opening (deposits required only for first 15 years)
• Who Can Open: Parents or legal guardians of a girl child below 10 years of age. Maximum 2 accounts for 2 daughters.
• Minimum Deposit: ₹250 per year
• Maximum Deposit: ₹1.5 lakh per year
• Tax Benefit: EEE — investment, interest, and maturity amount are all tax-free
• Partial Withdrawal: 50% of balance allowed after the girl turns 18 (for higher education)

6. Post Office Monthly Income Scheme (MIS)

MIS provides a fixed monthly income, making it ideal for retirees and conservative investors.

• Interest Rate: 7.40% per annum (paid monthly)
• Tenure: 5 years
• Who Can Open: Any Indian resident (single or joint account)
• Minimum Investment: ₹1,000
• Maximum Investment: ₹9 lakh (single account) / ₹15 lakh (joint account)
• Tax Benefit: No Section 80C benefit. Interest is fully taxable.
• Premature Closure: Allowed after 1 year (penalty: 2% if closed before 3 years, 1% after 3 years)

7. Post Office Time Deposit (TD)

Similar to bank fixed deposits, post office time deposits offer guaranteed returns for 1, 2, 3, or 5-year tenures.

• Interest Rates: 6.90% (1 year), 7.00% (2 years), 7.10% (3 years), 7.50% (5 years) — compounded quarterly
• Who Can Open: Any Indian resident
• Minimum Investment: ₹1,000
• Maximum Investment: No upper limit
• Tax Benefit: Only the 5-year TD qualifies for Section 80C deduction
• Premature Closure: Allowed after 6 months (lower interest rate applies)

👉 Also read: SBI vs Post Office Savings comparison

8. Post Office Recurring Deposit (RD)

RD helps you build savings through small monthly deposits over 5 years.

• Interest Rate: 6.70% per annum (compounded quarterly)
• Tenure: 5 years
• Who Can Open: Any Indian resident
• Minimum Deposit: ₹100 per month
• Maximum Deposit: No upper limit (multiples of ₹10)
• Tax Benefit: No Section 80C benefit. Interest is taxable.
• Loan Facility: Up to 50% of balance available after 12 monthly deposits
• Premature Closure: Allowed after 3 years (lower interest rate applies)

Tax Benefits Summary

Under the old tax regime, the following schemes qualify for deduction under Section 80C (up to ₹1.5 lakh per year):

1. Public Provident Fund (PPF)
2. National Savings Certificate (NSC)
3. Sukanya Samriddhi Yojana (SSY)
4. Senior Citizen Savings Scheme (SCSS)
5. 5-Year Post Office Time Deposit

Fully tax-free schemes (EEE status):

• PPF — interest and maturity both tax-free
• SSY — interest and maturity both tax-free

Section 80TTB (Senior Citizens): Interest up to ₹50,000 from post office savings account and SCSS is exempt.

Important: These deductions are available only under the old tax regime. Under the new tax regime, Section 80C deductions are not available. Read our income tax return filing guide for more details.

Documents Required

To open any post office savings scheme, you need:

1. Account Opening Form (available at the post office or download online)
2. PAN Card — Apply for PAN if you don't have one
3. Aadhaar Card — Apply for Aadhaar
4. Passport-size photographs (2 copies)
5. KYC documents — address proof (Aadhaar, voter ID, passport, driving licence)
6. Birth certificate of the girl child (for SSY)
7. Age proof (for SCSS — retirement certificate, if applicable)

How to Open a Post Office Savings Scheme Account

Option 1: Offline (At the Post Office)

1. Visit your nearest post office branch
2. Ask for the account opening form for the scheme you want
3. Fill in the form with your personal details
4. Attach KYC documents (Aadhaar, PAN, photographs)
5. Submit the form with the minimum deposit amount
6. The post office will verify documents and open your account
7. You will receive a passbook for your account

Option 2: Online (Internet Banking / Mobile App)

1. If you already have a post office savings account with internet banking enabled, log in to DOP Internet Banking
2. Navigate to the scheme you want to open
3. Fill in the required details and submit
4. Transfer the deposit amount online
5. Your account will be opened and linked to your savings account

Tip: Not all schemes can be opened online. PPF, RD, TD, and savings accounts can be opened online. For SCSS, NSC, and KVP, you may need to visit the post office.

Frequently Asked Questions (FAQ)

Q1. Are post office savings schemes safe?

Yes, all post office savings schemes are backed by the Government of India. Your money is 100% safe regardless of the amount invested. There is no risk of default.

Q2. Can NRIs invest in post office savings schemes?

No, NRIs cannot open new post office savings scheme accounts. If a resident who holds an account becomes an NRI, some schemes (like PPF) can continue until maturity but no new deposits can be made.

Q3. Can I open a post office scheme online?

Yes, if you have a post office savings account with internet banking, you can open PPF, RD, TD, and savings accounts online. Some schemes like SCSS, NSC, and KVP require a visit to the post office.

Q4. What happens if I miss a deposit in PPF or SSY?

If you fail to deposit the minimum amount (₹500 for PPF, ₹250 for SSY) in a financial year, your account becomes inactive. You can revive it by paying the minimum deposit plus a penalty of ₹50 per year of default.

Q5. Which post office scheme gives the highest interest rate?

As of January 2026, SCSS and Sukanya Samriddhi Yojana both offer the highest interest rate at 8.20% per annum.

Q6. Can I transfer my post office account to another branch?

Yes, you can transfer your post office savings account and linked scheme accounts from one post office branch to another. Submit a transfer request at your current branch with your passbook.

Q7. Is there TDS on post office scheme interest?

TDS applies to SCSS if interest exceeds ₹50,000 per year. For other schemes like MIS and TD, TDS is not deducted at source, but the interest is taxable and must be reported in your income tax return.

Disclaimer

This guide is for informational purposes only. Interest rates are subject to quarterly revision by the Government of India. Tax benefits depend on the applicable tax regime and individual circumstances. Always verify the latest rates on the India Post website or NSI India website before investing. Consult a qualified financial advisor for personalized investment advice.

Last updated: 18 February 2026