Government savings schemes, with today's rates.
Safe, government-backed places to grow your money — each designed for a different need. Here are the current rates, the rules that matter, and the fine print people discover too late.
Last reviewed: October 2026 · Give a missed call to +91 91766 82150 — I will call you back.
Current rates at a glance
| Scheme | Rate | Deposit limits | Tenure | Tax |
|---|---|---|---|---|
| Senior Citizens' Savings Scheme (SCSS) | 8.2% | ₹1,000 – ₹30 lakh | 5 yrs (+3) | Deposit: 80C · Interest taxable |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | ₹250 – ₹1.5 lakh / yr | Matures at 21 yrs | Fully tax-free |
| National Savings Certificate (NSC) | 7.7% | From ₹1,000, no max | 5 yrs | Deposit: 80C · Interest taxable |
| Kisan Vikas Patra (KVP) | 7.5% | From ₹1,000, no max | Doubles in 115 months | Taxable |
| PO Time Deposit (5 yr) | 7.5% | From ₹1,000, no max | 5 yrs | Deposit: 80C · Interest taxable |
| PO Monthly Income Scheme (MIS) | 7.4% | ₹9 lakh single · ₹15 lakh joint | 5 yrs | Taxable |
| Public Provident Fund (PPF) | 7.1% | ₹500 – ₹1.5 lakh / yr | 15 yrs (+5-yr blocks) | Fully tax-free |
| PO Recurring Deposit (RD) | 6.7% | From ₹100 / month | 5 yrs | Taxable |
Post Office Time Deposits for 1–3 years earn 6.9%–7.1%; the Post Office savings account earns 4.0%. Confirm at your post office or indiapost.gov.in before investing.
Fixed income, guaranteed return.
Why NSC
- Fixed income with a guaranteed return
- Good for building a corpus safely
- 7.7%, compounded annually, paid at maturity
- Deposit qualifies for 80C (old tax regime)
Before you invest
- Fixed lock-in of 5 years — early closure only in special cases such as death
- Rates for new certificates change periodically; yours stays fixed once bought
Regular income for retirees.
Eligibility
- Age 60 and above
- Retirees aged 55 to 60 on VRS or superannuation can invest within 1 month of receiving retirement benefits
- Investment limit ₹30 lakh per individual
How it works
- 8.2%, paid out quarterly — attractive, regular income
- Lock-in 5 years, extendable by 3 years
- Premature closure allowed with penalties: before 1 year, interest paid is recovered; after 1 year 1.5% is deducted; after 2 years 1%
Disciplined monthly saving.
How to use an RD
- Builds disciplined savings — a fixed amount every month
- Bank RD rates are typically 5% to 7%; Post Office RD currently pays 6.7% for 5 years
- Compare rates offered by different banks — and senior-citizen extras
- Interest is taxable; missing instalments attracts a small penalty
Fixed interest, every month.
What you get
- Fixed interest of 7.4%, paid monthly
- Limit ₹9 lakh per individual, ₹15 lakh in a joint account
- Invest as a lump sum; fixed tenure of 5 years
Points to note
- NRIs and HUFs are not eligible
- Can withdraw after 1 year: 2% deducted before 3 years, 1% after
- Interest is taxable; no 80C benefit
The long-term, tax-free workhorse.
Why PPF
- Long term — 15 years, extendable in 5-year blocks
- Ideal for building a retirement corpus
- 7.1%, compounded annually; fully tax-free (deposit, interest and maturity)
- Limit ₹1.5 lakh per year
Getting money out
- Loan from the 3rd financial year
- Partial withdrawal from the 7th financial year
- NRIs cannot open a new account
Your money doubles on a fixed date.
How KVP works
- Originally designed for rural savers; now open to any resident adult
- 7.5% compounded annually — your deposit doubles in 115 months
- Lock-in 2.5 years; can be encashed after that
- NRIs and HUFs are not eligible; interest is taxable
For a daughter's education and marriage.
Why SSY
- Promotes the welfare and financial security of the girl child — education and marriage expenses
- For girls aged 0 to 10 (up to two daughters; three in case of twins)
- 8.2%, compounded annually — one of the highest government rates, fully tax-free
How it works
- Deposits for 15 years; the account matures at 21 years
- Minimum ₹250, maximum ₹1.5 lakh per financial year
- Partial withdrawal up to 50% of the balance once she turns 18 (or passes Class 10)
A guaranteed pension for the unorganised sector.
Eligibility
- For workers in the unorganised sector
- Join between 18 and 40; pension starts at 60
- Guaranteed pension of ₹1,000 to ₹5,000 per month
- Income-tax payers cannot join (since October 2022)
- After the subscriber, the spouse receives the pension; then the nominee receives the corpus
Monthly contribution for a ₹1,000 pension
- Join at 18: ₹42 / month
- Join at 20: ₹50 / month
- Join at 25: ₹76 / month
- Join at 30: ₹116 / month
The earlier you join, the less you pay. The government co-contribution offered to early subscribers (2015–2020) is no longer available to new members.
Retirement savings through your employer.
Contributions
- 12% of basic pay + DA deducted from the employee, with an equal contribution from the employer (part goes to the pension scheme, EPS)
- Mandatory for establishments with 20 or more employees
- Interest rate is declared every year by EPFO and credited annually (8.25% for 2024–25)
Withdrawals & transfers
- Withdrawals allowed for specific needs — unemployment, medical emergencies, home purchase or home-loan repayment, marriage, education
- Your UAN lets the PF account move from one employer to the next — transfer it rather than withdrawing
Banking for every household.
What a Jan Dhan account gives
- Universal access to banking — savings account, remittances, insurance and pension options
- No minimum balance; minors (10+) can open an account with a guardian
- Overdraft up to ₹10,000 after satisfactory operation, subject to terms
- RuPay debit card with built-in accident insurance
- Can link PM Suraksha Bima Yojana (₹2 lakh accident cover for ₹20 a year) and PM Jeevan Jyoti Bima Yojana (₹2 lakh life cover)
Common questions
Are Post Office savings schemes safe?
Yes. Small-savings schemes carry the sovereign guarantee of the Government of India — they are among the safest places for your money.
What is the current SCSS interest rate?
8.2% per year, paid quarterly, for October–December 2026. The rate on the day you invest stays fixed for the 5-year term.
How much can I invest in the Post Office Monthly Income Scheme?
Up to ₹9 lakh in a single account and ₹15 lakh in a joint account. It currently pays 7.4% a year, credited monthly.
Can NRIs invest in these schemes?
NRIs cannot open new PPF, NSC, KVP, SCSS or Post Office MIS accounts. An existing PPF account can be continued until maturity.
Which scheme suits a retired person best?
Usually SCSS first (quarterly income, highest rate), then Post Office MIS for monthly income, then senior-citizen bank FDs. I tailor the mix to your expenses.
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