Post office schemes compared: which one should you choose?
Rules for FY 2026-27 · Checked 24 October 2026
Pick by what you need the money to do. For regular income, SCSS (8.2%, if you are 60+) or MIS (7.4%). For a lump sum in 5 years, NSC (7.7%). For long-term tax-free saving, PPF (7.1%), or Sukanya Samriddhi (8.2%) for a daughter under 10.
Every scheme side by side
| Scheme | Rate a year | Term | Interest | Deposit limits | Tax |
|---|---|---|---|---|---|
| Savings account | 4.0% | – | – | From ₹500 | Taxable, small exemptions |
| Recurring deposit | 6.7% | 5 years | Compounded quarterly, paid at maturity | From ₹100 a month | Taxable |
| Time deposit | 6.9% to 7.5% | 1, 2, 3 or 5 years | Worked out quarterly, paid yearly | From ₹1,000, no maximum | Taxable; 5-year deposit counts for 80C |
| Monthly Income Scheme | 7.4% | 5 years | Paid every month | ₹1,000 to ₹9 lakh (₹15 lakh joint) | Taxable |
| Senior Citizens Savings Scheme | 8.2% | 5 years, extendable by 3 | Paid every quarter | ₹1,000 to ₹30 lakh per person | Taxable; deposit counts for 80C |
| National Savings Certificate | 7.7% | 5 years | Compounded yearly, paid at maturity | From ₹1,000, no maximum | Taxable; deposit counts for 80C |
| Kisan Vikas Patra | 7.5% | 115 months | Money doubles at maturity | From ₹1,000, no maximum | Taxable |
| Public Provident Fund | 7.1% | 15 years, extendable by 5 | Compounded yearly | ₹500 to ₹1.5 lakh a year | Tax-free; deposit counts for 80C |
| Sukanya Samriddhi | 8.2% | 21 years | Compounded yearly | ₹250 to ₹1.5 lakh a year | Tax-free; deposit counts for 80C |
Rates are for October to December 2026 and are reviewed every quarter; see this quarter’s rates and what changed. 80C counts only in the old tax regime.
₹5 lakh for 5 years in each
The same ₹5 lakh put in each scheme at today’s rates. The first three pay you as you go; NSC pays everything at the end, so its interest earns interest.
| Scheme | What you get | Interest over 5 years |
|---|---|---|
| SCSS (60+ only) | ₹10,250 every quarter | ₹2,05,000 |
| Monthly Income Scheme | ₹3,083 every month | ₹1,85,000 |
| 5-year time deposit | ₹38,568 every year | ₹1,92,840 |
| NSC | ₹7,24,517 at maturity | ₹2,24,517 |
| Kisan Vikas Patra | ₹10 lakh after 9 years 7 months | Not comparable: longer term |
NSC comes out ahead of the time deposit even at a similar rate because nothing is paid out along the way. If you would spend the payouts anyway, that does not matter; if you would reinvest them, it does.
Getting your money out early
| Scheme | Early closure |
|---|---|
| Time deposit | Not in the first 6 months. Between 6 months and a year you get only the savings account rate. A 5-year deposit cannot be closed before 4 years. |
| Monthly Income Scheme | Not in the first year. 2% of the deposit is cut if closed in years 1–3, 1% in years 3–5. |
| SCSS | Before 1 year, no interest at all. 1.5% of the deposit is cut in year 2, 1% after that. |
| NSC | Only in special cases, such as the holder’s death or a court order. |
| Kisan Vikas Patra | Allowed after 2 years 6 months. |
| PPF | Loans from the 3rd year, part withdrawals from the 7th. See PPF rules. |
| Recurring deposit | Can be closed after 3 years. |
Which scheme for which goal
- Monthly income in retirement: SCSS first (highest rate, up to ₹30 lakh each), then MIS for more.
- A fixed sum in 5 years, with 80C: NSC, or the 5-year time deposit if you want yearly payouts.
- Money you may need within a year or two: a 1- or 2-year time deposit.
- Saving a little every month: the recurring deposit.
- Long-term, tax-free: PPF; for a daughter under 10, Sukanya Samriddhi pays more.
- Doubling a sum without touching it: KVP, though the interest is taxable, so NSC or PPF often leaves more after tax.
Work out a time deposit
Frequently asked questions
Are post office schemes safe?
Yes. They are Government of India schemes, so your deposit does not depend on the health of a bank.
Is the ₹30 lakh SCSS limit per account?
No. It is per person, and counts every SCSS account you hold, including ones you already have.
Will a rate cut reduce what my deposit earns?
Not for time deposits, RD, MIS, SCSS, NSC or KVP: the rate when you invest stays for the whole term. PPF and Sukanya Samriddhi move with each quarter’s rate.
Can NRIs open these accounts?
Not SCSS, and not a new PPF account. Check the rules for the other schemes with your post office before investing.
Sources: India Post, National Savings Institute, Department of Economic Affairs