India Post small savings schemes are backed by the Government of India. They are especially popular where bank branches are sparse, and for investors who want fixed, announced rates rather than market-linked returns.
Rates are reset quarterly (April, July, October, January). Figures below are indicative for Q1 FY 2025-26 — same as our Post Office hub and calculators. Always verify on India Post interest rates before investing.
Quick comparison (Q1 FY 2025-26)
| Scheme | Rate (p.a.) | Tenure | 80C on deposit? | Interest tax | Payout style |
|---|---|---|---|---|---|
| PPF | 7.1% | 15 yrs (extendable) | Yes (₹1.5L/yr cap) | Tax-free (EEE) | Lump sum at maturity |
| SSY | 8.2% | 21 yrs (deposit 15 yrs) | Yes | Tax-free (EEE) | Lump sum at maturity |
| NSC | 7.7% | 5 yrs fixed | Yes (lump sum) | Taxable* | At maturity |
| MIS | 7.4% | 5 yrs fixed | No | Taxable | Monthly interest |
| SCSS | 8.2% | 5 yrs (extendable) | No | Taxable | Quarterly interest |
| RD | 7.5% | 5 yrs | No | Taxable | Lump sum at maturity |
| KVP | 7.5% | ~10 yrs (doubles) | No | Taxable | At maturity |
*NSC interest is taxable; interest accrued in earlier years can be treated as deemed reinvestment under 80C in those years (subject to overall ₹1.5L cap) — confirm with your CA at filing.
PPF — Public Provident Fund
Who it suits: Long-term goals (15+ years) — retirement, child education, tax-free corpus.
Key rules:
- Minimum deposit: ₹500/year; maximum: ₹1.5 lakh/year across all your PPF accounts
- Tenure: 15 years; extend in blocks of 5 years with or without fresh deposits
- Partial withdrawal: Allowed from year 7 (limits apply)
- Tax: Deposits (80C), interest, and maturity are exempt (EEE status)
- Rate (Q1 FY 2025-26): 7.1% p.a. compounded annually
Example: ₹1.5 lakh/year for 15 years at 7.1% → maturity roughly ₹40 lakh+ (use PPF Calculator for exact monthly/yearly modes).
PPF vs bank FD: PPF often has lower headline rate than some bank FDs, but tax-free maturity and 80C can make effective returns higher for taxpayers in the 20–30% slab.
SSY — Sukanya Samriddhi Yojana
Who it suits: Parents/guardians of a girl child below 10 years (account opened before age 10).
- Deposit limit: ₹250 min; ₹1.5 lakh max per year
- Deposit period: 15 years from account opening; maturity at 21 years
- Rate (Q1 FY 2025-26): 8.2% p.a. — among the highest post office rates
- Tax: EEE (like PPF)
Compare SSY vs PPF for a girl child in our SSY Calculator — SSY rate is currently higher but locked to the child’s timeline.
NSC — National Savings Certificate (VIII Issue)
Who it suits: One-time 5-year lump sum with Section 80C benefit.
- Minimum: ₹1,000; no maximum investment cap (but 80C deduction capped at ₹1.5L/year)
- Interest: 7.7% p.a., compounded annually, paid at maturity
- No premature closure except on death of holder or court order
- Tax: Interest is taxable in your slab; 5th-year interest reporting has specific rules
Example: ₹1,00,000 for 5 years at 7.7% → maturity about ₹1.45 lakh (NSC Calculator).
NSC vs PPF: NSC fits a 5-year 80C lump sum; PPF fits 15-year tax-free wealth building.
MIS — Monthly Income Scheme
Who it suits: Retirees and others who need steady monthly cash flow without selling units.
- Tenure: 5 years (fixed)
- Deposit limits: ₹9 lakh (single account); ₹15 lakh (joint account)
- Rate (Q1 FY 2025-26): 7.4% p.a.; interest paid monthly
- Principal: Returned at maturity
- Tax: Monthly interest is fully taxable as “Income from other sources”
- No 80C on deposit
Example: ₹5,00,000 at 7.4% → about ₹3,083/month interest (MIS Calculator).
After-tax tip: If you are in the 30% slab, a 7.4% MIS pays roughly ~5.2% after tax — compare with SCSS or tax-free PPF for long lock-in.
SCSS — Senior Citizens Savings Scheme
Who it suits: Individuals 60+ (55+ for voluntary retirement; 50+ for defence retirees in some cases).
- Tenure: 5 years, extendable once by 3 years
- Investment limit: ₹30 lakh total across SCSS accounts (after Budget revisions — verify current notification)
- Rate (Q1 FY 2025-26): 8.2% p.a.; interest paid quarterly
- Tax: Interest taxable; TDS may apply if interest exceeds ₹50,000/year (₹1 lakh for very senior citizens — check current rules)
Often the first choice for retirees needing income with sovereign safety — see SCSS Calculator.
How to compare schemes fairly
1. Match the goal, not just the rate
| Your goal | Start here |
|---|---|
| Long-term tax-free wealth | PPF, SSY |
| 5-year 80C lump sum | NSC |
| Monthly pocket money (retiree) | MIS, SCSS |
| Save ₹500–₹5,000/month | Post Office RD |
| Double money, no 80C | KVP |
2. Compare after-tax returns
A 7.1% tax-free PPF beats a 8.2% taxable SCSS for someone in the 30% tax bracket on interest — run numbers in calculators with your slab in mind.
3. Use the same deposit amount and tenure
Do not compare 15-year PPF maturity to 5-year MIS monthly income without converting to an annual yield or using our hub table.
4. Keep liquidity separate
Post office schemes penalise early exit (except permitted PPF partial withdrawal). Keep 3–6 months expenses in a post office savings account (4.0% p.a. Q1 FY 2025-26) or bank savings before locking long-term money.
Opening an account
- Visit a post office with KYC (Aadhaar, PAN, photographs)
- Many schemes now support IPPB (India Post Payments Bank) digital flows — availability varies
- Nomination is strongly recommended on all accounts
Rate revision calendar
India Post notifies rates at the start of each quarter. If RBI policy or government notification changes, rates can move up or down. Bookmark our Post Office hub — we update calculator defaults when Q1/Q2/Q3/Q4 FY rates change.
Disclaimer
CalcIndia calculators use indicative rates for planning. Maturity amounts can differ slightly from post office passbook rounding. Tax treatment depends on your residency and current IT rules — consult a CA for NSC 5th-year interest and SCSS TDS.
Next steps: