Post Office & Small Savings Schemes Comparison
Every post office scheme’s current rate, after-tax yield, lock-in and tax benefit.
A new quarter has started since these rates were announced, so they may have changed — check the NSI rate table.
All schemes
Rates from the NSI rate table and India Post. Ranked by yield after tax; schemes that do not fit your answers are listed after the rest.
| Scheme and rate | Yield after tax | For your amount | Tax | Lock-in and limits |
|---|
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the Post Office & Small Savings Schemes Comparison
India’s post office small-savings schemes all carry government-set rates that are reviewed every quarter. This page puts the twelve of them in one table and compares them the way that matters for your money: the yearly yield after tax at your slab, whether the interest is tax-free, whether the deposit counts for the section 123 deduction, and how long the money is locked away.
Enter the amount you want to invest, how long you can leave it, your tax slab and regime. Schemes that fit your time frame are ranked by after-tax yield, with what your amount would earn in each lump-sum scheme; the others are listed below with the reason they do not fit. Every rate links back to its official source, and the page warns you when the quarter is over.
How to use it
- Enter the amount you want to invest in one go.
- Choose how long you can keep the money invested, your income-tax slab and your tax regime, and tick the box if you can open SCSS (60 or older, or retired and 55 or older).
- Read the ranking: after-tax yield first, then what the amount earns, the lock-in, and the tax treatment of each scheme.
- Open a scheme’s own calculator for its full schedule, or copy the comparison or download it as CSV.
Examples
5-year Time Deposit 6.11% after tax (₹38,568 a year) · NSC 6.10% (₹7,24,515 after 5 years) · MIS 5.86% (₹3,083 a month)
PPF (7.10%) and Sukanya Samriddhi (8.20%) are tax-free and beat them after tax, but lock the money for 15 and 21 years.
SCSS 5.64% after tax (₹30,750 a quarter) — and its deposit counts for section 123, saving up to ₹46,800
Only the savings account (4.0%) and the 1-year Time Deposit (6.9%, 7.08% effective) fit
Rates used
From the National Savings Institute’s rate table and India Post:
- Savings Account 4.0% · Time Deposit 6.9% (1 year), 7.0% (2 years), 7.1% (3 years), 7.5% (5 years) · Recurring Deposit 6.7%
- Monthly Income Scheme 7.4% · Senior Citizens’ Savings Scheme 8.2% · National Savings Certificate 7.7% · Kisan Vikas Patra 7.5% (doubles in 115 months)
- Public Provident Fund 7.1% · Sukanya Samriddhi 8.2%
The government announces the next quarter’s rates before it starts. Fixed-term deposits keep the rate of the day you open them; PPF, SSY and the savings account move with each quarter’s rate.
How the yields are compared
- Compounding schemes (NSC, PPF, SSY, RD, KVP): the yearly growth rate. KVP’s is 2^(12 ÷ 115) − 1 = 7.50%; the RD’s 6.7% compounded quarterly is 6.87%.
- Payout schemes (Time Deposit, MIS, SCSS, savings): what you receive each year as a share of the deposit. Time Deposit interest is calculated quarterly and paid yearly, so 7.5% pays 7.71% a year — India Post quotes ₹771 a year on ₹10,000.
- After tax: the yield × (1 − your slab × 1.04, for the 4% cess). PPF and SSY interest is exempt, so it is not reduced.
Payout schemes give you the interest along the way; if you spend it rather than reinvest it, the money does not compound.
Tax treatment
Under the Income-tax Act, 2025:
- Tax-free interest: PPF (Schedule II, serial 3) and Sukanya Samriddhi (serial 5).
- Taxable interest: everything else — NSC, KVP, SCSS, MIS, Time Deposits, RD and the savings account.
- Section 123 deduction (up to ₹1.5 lakh in all): deposits in PPF, SSY, NSC, SCSS and the 5-year Time Deposit (Schedule XV, para 1(e), (h), (i), (u) and (v)) — in the old regime only; the new regime allows no Chapter VIII deduction (section 202(2)(a)(xii)).
- Section 153, old regime only: up to ₹10,000 of savings-account interest is deductible, or for a senior citizen up to ₹50,000 of interest on any bank or post office deposits.
The deduction saving shown is your deposit (up to ₹1.5 lakh) × your slab with cess — what it saves only if you have that much room left under the limit.
Lock-in and early exit
- Savings Account: none. RD: after 3 years, at the savings rate.
- 1-, 2- and 3-year Time Deposits: not before 6 months. Closed within the first year they earn the savings rate; after that, 2 percentage points less than the rate for the years held.
- 5-year Time Deposit: not before 4 years, and then it earns only the savings rate — the rule set by G.S.R. 830(E). On any early closure of a Time Deposit, interest already paid out is set off against what you get back.
- MIS: after a year, 2% of the deposit deducted (1% after 3 years). SCSS: any time, but before a year the interest paid is taken back; then 1.5%, and 1% after 2 years.
- NSC: only on death, court order or forfeiture by a pledgee. KVP: after 2½ years at a set value.
- PPF: loans from year 3, partial withdrawals from year 7. SSY: up to 50% for the girl’s education from 18 or after Class 10.
If you claimed section 123 on an SCSS or 5-year Time Deposit and withdraw it within 5 years, the amount withdrawn (less interest already taxed) is taxed as income of that year (Schedule XV, paragraph 5).
Limitations
- Rates are bundled with the page. Once a new quarter starts, the page tells you they may be out of date; check the NSI table for the current quarter.
- The after-tax yield uses one slab rate plus cess. It ignores surcharge, the section 156 rebate (under which income up to ₹12 lakh pays no tax in the new regime) and the section 153 deduction.
- RD, PPF and SSY take regular deposits, so they are compared by yield only — their own calculators work out the amounts.
- Each scheme is looked at on its own; per-person limits across several accounts (MIS, SCSS) and eligibility rules are summarised, not checked in full.
Privacy
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Frequently asked questions
Which post office scheme gives the highest interest now?
Before tax, Sukanya Samriddhi and SCSS at 8.2%, then NSC at 7.7%. SSY is only for a girl under 10 and SCSS for people aged 60 or more (55 for retirees). After tax, the tax-free SSY and PPF come out on top for anyone who pays tax — but they lock the money for 21 and 15 years.
Are post office interest rates the same in every post office and bank?
Yes. The rates are set by the Ministry of Finance for each quarter and are the same wherever you open the account, including the banks that offer PPF, SSY and SCSS.
Do post office interest rates change every quarter?
They are reviewed every quarter, and the government announces the next quarter’s rates before it starts. Fixed-term schemes keep the rate of the date you invest; PPF, SSY and the savings account move with the current rate.
Is NSC better than a 5-year post office time deposit?
At current rates they are almost level: the TD pays 7.71% a year in yearly payouts, NSC compounds at 7.7% and pays everything at the end. Both count for section 123 in the old regime and both have taxable interest. Neither is easy to cash early: NSC only on death, a court order or forfeiture by a pledgee, and the 5-year TD not before 4 years, when it then earns only the savings-account rate.
Which post office schemes are tax-free?
Only PPF and Sukanya Samriddhi have tax-free interest. NSC, SCSS and the 5-year Time Deposit give a section 123 deduction on the deposit in the old regime, but their interest is taxable.