by Post office interest rates for October–December 2026 have been kept unchanged by the Government of India. The Finance Ministry announced on 30 September 2026 that all small savings schemes, from PPF and Sukanya Samriddhi to the Monthly Income Scheme and Time Deposits, will continue at the same rates for the third quarter of FY 2026-27. Here is the full rate table, along with which scheme suits which saver.
Post Office Interest Rates Oct–Dec 2026: Full Table
| Scheme | Interest rate (p.a.) | Compounding / payout |
|---|---|---|
| Post Office Savings Account | 4.0% | Yearly |
| Time Deposit – 1 year | 6.9% | Quarterly, paid yearly |
| Time Deposit – 2 years | 7.0% | Quarterly, paid yearly |
| Time Deposit – 3 years | 7.1% | Quarterly, paid yearly |
| Time Deposit – 5 years | 7.5% | Quarterly, paid yearly |
| Recurring Deposit – 5 years | 6.7% | Quarterly |
| Monthly Income Scheme (POMIS) | 7.4% | Paid monthly |
| Senior Citizen Savings Scheme (SCSS) | 8.2% | Paid quarterly |
| National Savings Certificate (NSC) | 7.7% | Yearly, paid at maturity |
| Kisan Vikas Patra (KVP) | 7.5% | Doubles in about 115 months |
| Public Provident Fund (PPF) | 7.1% | Yearly |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Yearly |
Which Post Office Scheme Is Best for You?
For senior citizens: SCSS
The Senior Citizen Savings Scheme pays 8.2%, credited every quarter. People aged 60 and above can invest up to ₹30 lakh for five years. It is ideal for retirees who need regular income.
For monthly income: POMIS
The Monthly Income Scheme pays 7.4% every month. The limit is ₹9 lakh in a single account and ₹15 lakh in a joint account, for five years.
For a girl child: Sukanya Samriddhi
At 8.2% with tax-free interest, SSY is the top choice for parents of daughters below 10 years. Read our detailed Sukanya Samriddhi Yojana interest rate and calculator guide.
For tax saving: PPF, NSC, 5-year TD
PPF (7.1%, tax-free interest), NSC (7.7%) and the 5-year Time Deposit (7.5%) qualify for Section 80C deduction under the old tax regime.
For doubling money: Kisan Vikas Patra
KVP at 7.5% doubles the investment in about 115 months (9 years 7 months). There is no upper limit, but there is no tax benefit.
For small monthly savings: Recurring Deposit
The 5-year RD at 6.7% lets you start with as little as ₹100 a month and build a habit of saving.
Post Office FD vs Bank FD in 2026
The 5-year post office Time Deposit at 7.5% is higher than the regular 5-year FD rates of many large banks. Post office deposits are backed by the Government of India, so the safety is very high. However, bank FDs offer more flexible tenures and quicker online access.
How to Open a Post Office Savings Scheme
- Visit your nearest post office with Aadhaar, PAN and two passport-size photos.
- Fill in the account opening form for the chosen scheme.
- Deposit the amount by cash or cheque.
- Collect the passbook or certificate.
- Link the account to the India Post Payments Bank (IPPB) app to deposit and check balance online.
Need a PAN? See our step-by-step guide to apply for a PAN card online.
When Will Rates Change Next?
Small savings rates are reviewed every quarter. The next review will be announced near the end of December 2026 for the January–March 2027 quarter. Money already invested in fixed-rate schemes like NSC, KVP, TD, MIS and SCSS keeps the rate at which it was booked. PPF and SSY follow the current quarter’s rate.
How Post Office Interest Rates Are Decided
Post office interest rates for small savings schemes are set by the Ministry of Finance every quarter. The rates are broadly linked to the yields on government securities of similar maturity, following the formula suggested by the Shyamala Gopinath committee, with an extra spread for some schemes. The government can also keep rates unchanged for social reasons. That is why post office interest rates sometimes stay the same for many quarters even when bank FD rates move.
Scheme-by-Scheme Guide With Examples
Senior Citizen Savings Scheme (8.2%)
Open to people aged 60 and above (55–60 for certain retired employees under conditions). Maximum investment is ₹30 lakh, tenure five years, extendable by three years. Interest is paid every quarter. Example: ₹30 lakh earns about ₹61,500 every quarter, or ₹2.46 lakh a year. Interest is taxable, but deposits qualify for 80C under the old regime.
Monthly Income Scheme (7.4%)
Invest up to ₹9 lakh in a single account or ₹15 lakh jointly for five years. Example: ₹9 lakh gives about ₹5,550 every month. Premature closure after one year is allowed with a small deduction.
Time Deposit (6.9% to 7.5%)
Choose 1, 2, 3 or 5 years. Interest is calculated quarterly and paid yearly. Example: ₹5 lakh in a 5-year TD at 7.5% earns about ₹38,500 a year. The 5-year TD qualifies for 80C.
National Savings Certificate (7.7%)
Five-year certificate with yearly compounding, paid at maturity. Example: ₹1 lakh grows to about ₹1.45 lakh. Qualifies for 80C; the reinvested interest of the first four years can also be claimed under 80C.
Kisan Vikas Patra (7.5%)
Doubles your money in about 115 months. No maximum limit and no tax benefit. Useful for people who want a simple, guaranteed doubling. See our Kisan Vikas Patra guide.
Recurring Deposit (6.7%)
Monthly deposits for five years. Example: ₹5,000 a month grows to about ₹3.57 lakh at maturity. Good for building a savings habit.
Public Provident Fund (7.1%)
Fifteen-year account with tax-free interest and maturity. Yearly deposit between ₹500 and ₹1.5 lakh. Partial withdrawals and loans are allowed after a few years.
How to Invest in Post Office Schemes Online
- Open a post office savings account at your nearest post office with Aadhaar, PAN and photos.
- Activate India Post internet banking or link the account with the IPPB mobile app.
- Use the app or net banking to deposit into RD, PPF and SSY accounts.
- For TD, MIS, NSC, KVP and SCSS, some services can be started online through India Post net banking; otherwise visit the branch.
- Download statements and keep certificates safely.
Documents Needed to Open Any Scheme
- Aadhaar card (mandatory for small savings)
- PAN card (mandatory above certain deposit limits)
- Two passport-size photos
- Address proof if Aadhaar address is outdated
- Nominee details
Tax Rules on Post Office Interest
Except PPF and SSY, interest from post office schemes is taxable as per your income slab. TDS is deducted on SCSS interest above the yearly threshold; for senior citizens the threshold was raised to ₹1 lakh from FY 2025-26. Senior citizens can also claim a deduction on interest income under Section 80TTB in the old tax regime. Submit Form 15G or 15H if your total income is below the taxable limit, to avoid TDS.
Post Office Interest Rates vs Bank FD Rates
For one-year deposits, many banks offer similar or slightly higher rates than the post office. For five years, the post office TD at 7.5% and NSC at 7.7% are often better than large-bank FD rates. Senior citizens should compare SCSS at 8.2% with senior citizen FD rates of banks; SCSS usually wins on both rate and safety. Small finance banks may offer higher FD rates, but deposit insurance there is limited to ₹5 lakh per bank.
Which Scheme for Which Goal?
| Goal | Best scheme |
|---|---|
| Regular retirement income | SCSS + MIS |
| Daughter’s education | SSY |
| Long-term tax-free savings | PPF |
| Five-year tax-saving deposit | NSC or 5-year TD |
| Doubling money safely | KVP |
| Monthly saving habit | RD |
Premature Withdrawal Rules in Brief
- TD: Not before six months; lower interest if closed early.
- MIS: After one year, with 2% deduction (1–3 years) or 1% (after 3 years).
- SCSS: Allowed with a penalty that depends on when you close.
- NSC: Only in special cases like death of the holder or court order.
- KVP: After 2.5 years.
- RD: After three years.
Post Office Interest Rates: Last Few Quarters
Post office interest rates have been stable for a long time. Most schemes have not changed since early 2024, when SSY was raised to 8.2% and the 3-year TD to 7.1%. The table below shows that the current rates continue the same levels.
| Scheme | Jan–Mar 2026 | Apr–Jun 2026 | Jul–Sep 2026 | Oct–Dec 2026 |
|---|---|---|---|---|
| SCSS | 8.2% | 8.2% | 8.2% | 8.2% |
| SSY | 8.2% | 8.2% | 8.2% | 8.2% |
| NSC | 7.7% | 7.7% | 7.7% | 7.7% |
| PPF | 7.1% | 7.1% | 7.1% | 7.1% |
| MIS | 7.4% | 7.4% | 7.4% | 7.4% |
Why Post Office Interest Rates Matter for Kerala Families
Kerala has one of the highest numbers of senior citizens and NRI families in India. Many retirees depend on monthly or quarterly income from SCSS and MIS, and many households keep savings in post office RD accounts opened through local agents. Changes in post office interest rates directly affect the monthly budget of these families. Stable rates for 2026 mean retirees can plan their spending with more confidence.
Post Office Interest Rates for Senior Citizens: Best Combination
A retired person with ₹45 lakh could put ₹30 lakh in SCSS (₹61,500 every quarter) and ₹9 lakh in MIS (₹5,550 every month), keeping the rest in a savings account or short FD for emergencies. This mix uses the highest post office interest rates while keeping money accessible. Interest is taxable, so senior citizens should plan Form 15H or tax payments accordingly.
Safety of Post Office Deposits
All small savings schemes are backed by the Government of India. Unlike bank deposits, which are insured up to ₹5 lakh per bank, post office deposits carry a sovereign guarantee on the full amount. This is a key reason many people choose post office schemes even when a few banks offer slightly higher rates.
Using Agents Safely
Many people in Kerala invest through authorised small savings agents. Agents can help with forms and monthly RD collection, but always make sure your deposit is entered in your passbook or statement. Never give signed blank forms or cash without a receipt. Check your account balance regularly using the IPPB app or by updating the passbook.
Rate Lock: When Your Rate Changes
Post office interest rates apply in two ways. For fixed schemes like TD, MIS, NSC, KVP and SCSS, the rate on the day you invest stays the same for the full term. For PPF and SSY, the rate follows each quarter’s announcement. So, if you expect rates to fall, locking in a fixed scheme now protects your return; if you expect rates to rise, shorter terms keep you flexible.
Joint Accounts and Nominees
Most schemes allow joint accounts with up to two or three adults, depending on the scheme. MIS has a higher limit for joint accounts, which suits couples. SCSS can be opened jointly with the spouse, with the first holder’s age deciding eligibility. Always add a nominee; it makes claims quick and simple for the family if something happens to the account holder.
Post Office Interest Rates and Inflation
A return is meaningful only if it beats inflation. With consumer inflation in India mostly in the low-to-mid single digits in recent years, post office interest rates of 7–8.2% give a positive real return, especially for tax-free options like PPF and SSY. For taxable schemes, people in higher tax slabs should calculate the post-tax return before investing.
Step-by-Step: Opening SCSS for a Parent
- Visit the post office with your parent, carrying Aadhaar, PAN, photos and a cheque for the amount.
- Fill the SCSS form and choose a nominee.
- Submit Form 15H if your parent’s total income is below the taxable limit.
- Link the account to your parent’s savings account so quarterly interest is credited automatically.
- Keep the passbook and note the maturity date in a diary.
Common Myths About Post Office Schemes
- “Post office schemes are only for villages.” No. Many urban professionals use PPF, NSC and SSY for safe, tax-efficient savings.
- “Everything must be done at the counter.” Many deposits and checks can now be done through the IPPB app and India Post net banking.
- “Rates change every month.” Post office interest rates are reviewed only once a quarter.
- “All interest is tax-free.” Only PPF and SSY interest is tax-free. Others are taxable.
When to Check for New Post Office Interest Rates
The next announcement will come near the end of December 2026 for January–March 2027. We update this page whenever the post office interest rates are revised, so you can bookmark it and check before investing. For scheme details, also see our guide to the Sukanya Samriddhi Yojana interest rate.
Bottom Line
Post office interest rates for October–December 2026 are steady: SCSS and SSY at 8.2%, NSC at 7.7%, KVP and the 5-year TD at 7.5%, MIS at 7.4%, PPF at 7.1% and RD at 6.7%. For safety, steady income and tax benefits, these schemes remain strong choices. Match the scheme to your goal, invest early in the financial year, and keep tracking post office interest rates every quarter.
Mistakes to Avoid When Choosing a Scheme
- Putting all savings into a five-year lock-in and leaving nothing for emergencies
- Choosing MIS when you do not need monthly income; NSC or TD may give better growth
- Forgetting that SCSS interest is taxable and not planning for TDS
- Ignoring the nominee section on the form
- Not linking accounts to a savings account for automatic credit of interest
Maturity: What to Do Next
When a TD, MIS, NSC or SCSS account matures, the amount moves to your post office savings account or is paid by cheque. Do not leave large sums idle in the savings account earning only 4%. Reinvest at the post office interest rates applicable on that day, or extend SCSS by three years if you are eligible. Planning maturity dates across different months also spreads out your reinvestment risk if rates change.
Keeping a simple list of every account, its amount, rate and maturity date in one place makes it much easier for you and your family to manage savings over the years.
Post Office Schemes for NRIs and Minors
Most small savings schemes are meant for resident Indians. NRIs generally cannot open new accounts in schemes like NSC, KVP, SCSS or MIS, and rules for continuing existing accounts after becoming an NRI are set by the government. Parents can open several schemes for minors, such as RD, TD, MIS and PPF, with the parent as guardian. Ask your post office for the current rules before investing on behalf of family members abroad.
Official Sources for Post Office Interest Rates
The Ministry of Finance announces post office interest rates every quarter, and the updated table is published on the official India Post website and the National Savings Institute. Before investing, compare the post office interest rates on these sites with what your branch shows. Bookmark this page as well, because we update post office interest rates as soon as a new quarter’s rates are notified, so you always see current post office interest rates in one place.
Frequently Asked Questions
What are post office interest rates for October to December 2026?
Rates are unchanged: SCSS and SSY 8.2%, NSC 7.7%, 5-year TD and KVP 7.5%, MIS 7.4%, PPF 7.1%, 5-year RD 6.7% and savings account 4%.
Which post office scheme gives the highest interest?
Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana both pay 8.2%, the highest among small savings schemes.
Is post office FD safe?
Yes. Post office deposits are backed by the Government of India.
How long does KVP take to double money?
At 7.5%, Kisan Vikas Patra doubles the amount in about 115 months.
Do existing investments get the new rate?
Fixed schemes such as NSC, KVP, TD, MIS and SCSS keep the rate at the time of investment. PPF and SSY change with each quarter.
Disclaimer: This is general information, not investment advice. Rates are notified by the Ministry of Finance and can change every quarter.
