worldofcalcsPost Office Interest Rates October–December 2026: All Schemes Compared
The Ministry of Finance sets interest rates on post office small savings schemes every quarter. For October to December 2026, the rates are:
| Scheme | Rate | Interest paid | Term |
|---|---|---|---|
| Senior Citizens' Savings Scheme (SCSS) | 8.2% | Quarterly | 5 years |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Compounded yearly | Until the girl is 21 |
| National Savings Certificate (NSC) | 7.7% | Compounded yearly, paid at maturity | 5 years |
| Kisan Vikas Patra (KVP) | 7.5% | Doubles at maturity | 115 months |
| Time Deposit, 5 years | 7.5% | Paid yearly | 5 years |
| Monthly Income Scheme (MIS) | 7.4% | Monthly | 5 years |
| Public Provident Fund (PPF) | 7.1% | Compounded yearly | 15 years |
| Time Deposit, 3 years | 7.1% | Paid yearly | 3 years |
| Time Deposit, 2 years | 7.0% | Paid yearly | 2 years |
| Time Deposit, 1 year | 6.9% | Paid yearly | 1 year |
| Recurring Deposit, 5 years | 6.7% | Compounded quarterly | 5 years |
| Savings account | 4.0% | Yearly | — |
Rate lock. For fixed-term schemes (SCSS, MIS, NSC, KVP, time deposits and RD), the rate on the day you invest stays fixed for the full term. PPF and SSY are different: your whole balance earns whatever the current quarter's rate is.
What each scheme pays
Monthly income: MIS
- Limits: up to ₹9 lakh in a single account, or ₹15 lakh in a joint account.
- Income: ₹9 lakh at 7.4% pays ₹5,550 a month; ₹15 lakh joint pays ₹9,250 a month.
- Term: principal returned after 5 years.
- Tax: interest fully taxable, no 80C benefit.
Retirees: SCSS
- Return: the highest fixed rate available, 8.2%. ₹15 lakh pays ₹30,750 every quarter.
- Limit: up to ₹30 lakh per person, for ages 60+ (55+ for some retirees).
- Tax: the deposit qualifies for 80C in the old regime. See our SCSS vs FD comparison.
Growth with a tax deduction: NSC
- Growth: ₹1,00,000 grows to ₹1,44,903 after 5 years.
- Tax: the deposit qualifies for 80C. Each year's accrued interest (except the last) is treated as reinvested and can also be claimed under 80C.
- Interest: taxable as income, in the year it accrues.
Doubling your money: KVP
- Growth: ₹1,00,000 becomes ₹2,00,000 in 115 months (9 years 7 months).
- Tax: no 80C deduction; interest is taxable.
- Early exit: you can encash after 2 years 6 months.
Long-term, tax-free: PPF and SSY
PPF and SSY are both EEE: the deposit qualifies for 80C (old regime), and the interest and maturity amount are tax-free.
- PPF: ₹500 to ₹1.5 lakh a year, for 15 years, extendable in 5-year blocks.
- SSY: for a girl under 10. ₹250 to ₹1.5 lakh a year, paid for 15 years; the account matures at 21.
Fixed deposits: post office time deposits
- Rates: 1, 2, 3 and 5 years, at 6.9% to 7.5%.
- 5-year deposits: qualify for 80C. ₹1,00,000 earns about ₹7,714 a year, because interest is compounded quarterly and paid yearly.
Post office or bank?
Post office schemes are backed by the Government of India, so there is no ₹5 lakh insurance limit to worry about. Rates are often higher than big-bank FDs for the same term, especially SCSS and NSC.
The trade-offs:
- Less flexible. Terms are fixed, and there are penalties for early closure.
- Fewer online options. Many schemes are now available through post office net banking and IPPB, and SCSS and PPF also through banks.
- Rates can change. For new deposits, rates can fall from one quarter to the next.
Tax summary
| Scheme | 80C (old regime) | Interest |
|---|---|---|
| PPF, SSY | Yes | Tax-free |
| NSC, 5-year TD, SCSS | Yes | Taxable |
| MIS, KVP, RD, 1–3 year TD | No | Taxable |
Taxable interest is added to your income in whichever regime you choose. In the new regime, total taxable income up to ₹12 lakh pays no tax.
Calculators
Work out your exact returns with the SCSS, MIS, NSC, KVP, PPF, SSY and RD calculators. All of them use the rates above.
Rates apply to deposits made from 1 October to 31 December 2026. The next revision, for January–March 2027, is usually announced in the last days of December.