Post Office Interest Rates 2026: All Schemes Compared

Post Office interest rates in 2026 range from 4% on a basic savings account to 8.2% on the Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana. Every rate is set by the Government of India and reviewed each quarter, which makes the post office one of the most transparent places to compare guaranteed returns.

Because these are sovereign-backed small-savings schemes, the rates apply uniformly at every post office across the country, with no negotiation and no bank-by-bank variation. That uniformity, plus full capital safety, is why tens of millions of Indians use post office schemes as the backbone of their savings.

This guide sets out the full Post Office interest rate table for the first quarter of FY 2026-27, explains how the rates are decided, walks through every scheme, and shows how to choose between them by goal - income, growth, or tax saving.

Post Office interest rates 2026: full table

The table below lists the interest rate for every major Post Office scheme for the first quarter of FY 2026-27 (April-June 2026). All 9 rates were carried over unchanged from the previous quarter.

"The rates of interest on various small savings schemes for the first quarter of FY 2026-27 remain unchanged from those notified for the fourth quarter of FY 2025-26." (Ministry of Finance small-savings rate notification, 2026, as reported by ClearTax.)

How Post Office rates are set

Post Office rates are decided by the Ministry of Finance and revised every 3 months, not by India Post itself. The rates are broadly linked to yields on government securities of comparable maturity, with a small spread added for certain schemes.

"Interest rates of small savings schemes are notified on a quarterly basis." (Ministry of Finance, small-savings framework, as reported by ClearTax.)

This quarterly review means rates can rise or fall a few basis points at a time, though the government has kept most small-savings rates steady across recent quarters. The current cycle has held the headline schemes at the same level for several quarters running, which is why the table above matches the previous quarter exactly.

The link to government-bond yields is the reason small-savings rates broadly track the wider interest-rate cycle: when bond yields ease, small-savings rates tend to follow at the next review, and when they rise, savers often see better rates a quarter or two later. This lag is worth keeping in mind when timing a large deposit.

The practical takeaway is that the rate quoted today is only guaranteed for schemes that fix the rate at the time of deposit; others reset each quarter. The next section explains which is which.

Fixed-at-deposit versus floating-rate schemes

A crucial distinction is whether a scheme locks its rate at deposit or follows the quarterly revisions. The Time Deposit, MIS, NSC, and KVP all fix the rate for the full term on the day money goes in, so they are immune to later changes.

By contrast, PPF, the Sukanya Samriddhi Yojana, and the Senior Citizen Savings Scheme are reset each quarter, so their effective return moves with the government's revisions over the life of the account. For a 15-year PPF, that means the rate will change many times before maturity.

This matters for timing: when rates look likely to fall, locking into a fixed-rate scheme like the 5-year TD or NSC secures today's return, while floating-rate schemes carry the risk - or upside - of future revisions.

The floating-rate schemes are not a disadvantage, though - they cut both ways. A 15-year PPF opened in a low-rate period will benefit automatically if rates climb in future quarters, with no action needed from the saver. The fixed-versus-floating choice is therefore less about which is better and more about whether certainty or potential upside suits the goal.

The highest-rate schemes right now

Two schemes lead the table at 8.2%: the Senior Citizen Savings Scheme (SCSS) and the Sukanya Samriddhi Yojana (SSY). Both are targeted schemes - SCSS for those aged 60 and above, SSY for a girl child - which is why they carry the top rate.

For savers who do not qualify for either, NSC at 7.7% and the 5-year Time Deposit at 7.5% are the next-best guaranteed rates. The choice among them then depends on tax treatment, payout style, and how long the money can be locked away.

It is worth noting that a higher headline rate does not always mean a higher post-tax return. A tax-free scheme like PPF at 7.1% can beat a taxable 7.7% NSC for someone in a high tax bracket, because the PPF interest is exempt while the NSC interest is taxed. Comparing schemes on their after-tax yield, not the sticker rate, is the more accurate approach.

Scheme-by-scheme overview

The 10 schemes in the table serve different goals, from everyday banking to long-term tax-free growth. The summaries below explain what each one is for.

Savings Account (4.0%)

The Post Office Savings Account is a basic transactional account paying 4.0%, with a minimum balance of just ₹500. Interest up to a threshold is tax-deductible, making it a simple parking spot for everyday funds, and it serves as the hub that receives interest payouts from MIS, TD, and other schemes.

Recurring Deposit (6.7%)

The 5-year RD builds a corpus from monthly deposits starting at ₹100, compounded quarterly. It suits savers putting aside a fixed sum from monthly income rather than a lump, and a ₹1,000 monthly RD matures to roughly ₹71,000 over the five years.

Time Deposit (6.9%-7.5%)

The Time Deposit is a lump-sum FD over 1, 2, 3, or 5 years, paying 6.9% up to 7.5%. The 5-year version also qualifies for a Section 80C deduction.

Monthly Income Scheme (7.4%)

MIS converts a lump sum into a fixed monthly income at 7.4% for five years, with limits of ₹9 lakh (single) and ₹15 lakh (joint). It is built for predictable cash flow rather than growth.

Senior Citizen Savings Scheme (8.2%)

SCSS is the highest-paying scheme for those aged 60+, at 8.2% paid quarterly, with a maximum investment of ₹30 lakh and a five-year term that can be extended. It also qualifies for 80C, making it the standout option for retirees seeking both income and a tax break.

Public Provident Fund (7.1%)

PPF is a 15-year, tax-free scheme at 7.1%, with deposits, interest, and maturity all exempt from tax (EEE status). It is a cornerstone long-term, tax-efficient option, with an annual deposit cap of ₹1.5 lakh and the ability to extend in five-year blocks after maturity.

National Savings Certificate (7.7%)

NSC is a 5-year, lump-sum certificate at 7.7%, compounded annually and paid at maturity, with full 80C eligibility on the amount invested. A ₹1 lakh deposit grows to about ₹1.45 lakh, and the certificate can be pledged as security for a loan, which adds a degree of flexibility despite the five-year lock-in.

Kisan Vikas Patra (7.5%)

KVP doubles the invested amount over its term, currently maturing in 115 months (about 9 years and 7 months) at 7.5%. It offers no tax benefit but is a simple, guaranteed doubling scheme, popular with savers who value the clarity of knowing exactly when their money will double.

Sukanya Samriddhi Yojana (8.2%)

SSY is a tax-free scheme for a girl child paying 8.2%, the joint-highest rate, with EEE tax status and an annual deposit cap of ₹1.5 lakh. It is designed for long-term goals like education and marriage, and can be opened for a girl below the age of 10.

Between SCSS and SSY, the two top-rate schemes serve opposite ends of life: SCSS provides quarterly income to retirees, while SSY compounds tax-free over many years for a child's future. Households that qualify for both often use each in its intended role rather than choosing between them.

Choosing a scheme by goal

The right scheme follows the goal, not just the headline rate. For monthly income, MIS (7.4%) or SCSS (8.2% for seniors) fit; for tax-free long-term growth, PPF and SSY lead; for a lump-sum tax deduction, the 5-year TD or NSC work.

Eligibility narrows the field further: SCSS needs age 60+, SSY needs a girl child, while MIS, RD, TD, NSC, KVP, and PPF are open to any resident adult. Matching goal, eligibility, and lock-in period is the practical way to pick.

Many households end up holding several schemes side by side rather than choosing just one. A typical mix might pair a PPF for tax-free long-term growth, an MIS or SCSS for monthly income in retirement, and an RD to build a short-term goal fund - each filling a role the others do not, all under one government-backed roof.

Liquidity is the final filter. PPF and SSY lock money away for the long term, NSC and the 5-year TD for five years, while the RD and savings account stay relatively accessible. Keeping an emergency buffer in liquid form before locking surplus into the higher-rate, longer-tenure schemes is sound practice.

For most savers, the sensible sequence is to use the savings account for day-to-day money, an RD or short Time Deposit for goals one to five years away, and the long-term, tax-advantaged schemes - PPF, SSY, NSC, and SCSS - for retirement and children's futures. Reviewing the mix once a year, when fresh rates are notified, keeps the plan aligned with both the rate cycle and changing goals.

Reading the table for an after-tax decision

The most useful way to read this table is alongside the tax treatment of each scheme, since the after-tax return is what a saver actually keeps. A tax-free 8.2% on SSY or a tax-free 7.1% on PPF can outrank a taxable 7.7% NSC once a high earner's slab is applied to the interest.

For a saver in a low or nil bracket, by contrast, the headline rate is much closer to the real return, so the higher-rate taxable schemes look stronger. Knowing one's own tax position is therefore as important as the rate table itself when choosing where to place money.

Why Post Office rates stay competitive

Even when bank deposit rates rise, the Post Office schemes tend to stay competitive because their rates carry a spread above government-bond yields and the top schemes are set generously as social-security measures. SCSS and SSY at 8.2%, in particular, often sit well above comparable bank products.

Combined with the full sovereign guarantee on the whole deposit, rather than the limited bank insurance, this keeps the Post Office attractive to safety-first savers. For guaranteed, government-backed returns, the rate table here remains among the best available in the country.

Methodology

This guide uses the Post Office small-savings interest rates notified for Q1 FY 2026-27 and scheme rules published by India Post. Rates are drawn from India Post's banking-services pages and the Ministry of Finance notification; maturity examples are calculated from the stated rates and rounded.

Small-savings rates are revised every quarter, so figures should be confirmed on India Post's official site before investing. This article is general information, not financial or tax advice; readers should consult a qualified adviser for decisions specific to their situation.

Key takeaways

• Post Office rates for FY2026-27 Q1 span 4.0% (savings account) to 8.2% (SCSS and SSY), all unchanged from the prior quarter.
• SCSS and SSY lead at 8.2%, then NSC (7.7%) and the 5-year TD (7.5%); MIS pays 7.4% as monthly income.
• Rates are set quarterly by the Ministry of Finance; TD, MIS, NSC, and KVP fix the rate at deposit, while PPF, SSY, and SCSS reset each quarter.
• PPF and SSY are fully tax-free; PPF, NSC, 5-year TD, SCSS, and SSY offer 80C deductions.
• All schemes are government-backed, so choose by goal, eligibility, and lock-in rather than rate alone.