The Government of India has announced the latest interest rates for all Post Office Small Savings Schemes applicable from 1 July 2026 to 30 September 2026. As expected, no changes have been made in any of the schemes, and all interest rates remain unchanged for the ninth consecutive quarter. These rates will remain applicable throughout July, August, and September 2026, after which the Government will review them again for the October–December 2026 quarter.
If you are planning to invest in any Post Office scheme during this quarter, here are the latest interest rates along with the important features of each scheme.
Latest Post Office Interest Rates (1 July 2026 to 30 September 2026)
| Post Office Scheme | Interest Rate (p.a.) |
|---|---|
| Savings Account | 4.00% |
| 1-Year Time Deposit | 6.90% |
| 2-Year Time Deposit | 7.00% |
| 3-Year Time Deposit | 7.10% |
| 5-Year Time Deposit | 7.50% |
| 5-Year Recurring Deposit | 6.70% |
| Monthly Income Scheme (MIS) | 7.40% |
| National Savings Certificate (NSC) | 7.70% |
| Public Provident Fund (PPF) | 7.10% |
| Kisan Vikas Patra (KVP) | 7.50% |
| Sukanya Samriddhi Yojana (SSY) | 8.20% |
| Senior Citizens Savings Scheme (SCSS) | 8.20% |
Source: Ministry of Finance Notification for July–September 2026 Quarter.
1. Post Office Savings Account – 4.00%
The Post Office Savings Account functions similarly to a bank savings account. You receive a passbook, ATM facilities (where applicable), and can deposit or withdraw money as required.
Interest Rate
- 4.00% per annum
- Interest is calculated as per the applicable rules for savings accounts.
This scheme is ideal for investors looking for complete liquidity with government-backed safety.
2. Post Office Time Deposit (Fixed Deposit)
The Post Office offers four fixed deposit options.
| Tenure | Interest Rate |
|---|---|
| 1 Year | 6.90% |
| 2 Years | 7.00% |
| 3 Years | 7.10% |
| 5 Years | 7.50% |
Interest is compounded quarterly but payable at maturity.
Important Features
- Government-backed investment.
- Safe fixed returns.
- Suitable for conservative investors.
- The 5-year Time Deposit also qualifies for deduction under Section 80C, subject to applicable tax provisions.
3. Post Office Recurring Deposit (RD)
The Recurring Deposit scheme is designed for individuals who wish to save every month.
Interest Rate
6.70% per annum
Key Features
- Monthly deposits.
- 5-year maturity.
- Ideal for salaried individuals and disciplined savings.
4. Monthly Income Scheme (MIS)
Investors looking for regular income often prefer the Post Office Monthly Income Scheme.
Interest Rate
7.40% per annum
Features
- Monthly interest payout.
- 5-year maturity.
- Government guarantee.
For example, if you invest ₹1,00,000, your annual interest works out to ₹7,400, which translates to approximately ₹617 per month.
5. National Savings Certificate (NSC)
NSC is among the most popular long-term savings schemes.
Interest Rate
7.70% per annum
Features
- 5-year maturity.
- Interest is compounded annually.
- Entire maturity amount is received at the end of 5 years.
- Eligible for Section 80C deduction, subject to tax provisions.
6. Public Provident Fund (PPF)
PPF remains one of India’s best long-term wealth creation options.
Interest Rate
7.10% per annum
Key Benefits
- 15-year investment period.
- Minimum investment: ₹500 per year.
- Maximum investment: ₹1.5 lakh per financial year.
- Interest earned is tax-free under current tax provisions.
- Maturity proceeds are also tax-free, subject to prevailing law.
PPF is especially beneficial for taxpayers looking for tax-efficient long-term savings.
7. Kisan Vikas Patra (KVP)
Despite its name, Kisan Vikas Patra is available to all eligible investors.
Interest Rate
7.50% per annum
Maturity
Your investment doubles in 115 months (9 years and 7 months).
This scheme is suitable for investors with a medium-to-long-term investment horizon.
8. Sukanya Samriddhi Yojana (SSY)
SSY continues to offer the highest interest rate among savings schemes.
Interest Rate
8.20% per annum
Features
- For girl children below 10 years of age.
- Minimum annual deposit: ₹250.
- Maximum annual deposit: ₹1.5 lakh.
- Deposits for 15 years.
- Account matures after 21 years (subject to scheme rules).
- Partial withdrawal allowed for higher education under prescribed conditions.
This scheme is ideal for building a corpus for a daughter’s education or marriage.
9. Senior Citizens Savings Scheme (SCSS)
SCSS remains one of the best options for retired individuals.
Interest Rate
8.20% per annum
Features
- Available for eligible senior citizens.
- Quarterly interest payout.
- 5-year maturity.
- Can be extended after maturity as per scheme rules.
- Maximum investment limit: ₹30 lakh.
For retirees looking for regular income, SCSS continues to be among the most attractive government-backed investment options.
Which Post Office Scheme Offers the Highest Interest?
For the July–September 2026 quarter:
- Highest Interest Rate: Sukanya Samriddhi Yojana (8.20%)
- Highest Interest Rate for Senior Citizens: SCSS (8.20%)
- Best for Monthly Income: MIS (7.40%)
- Best for Long-Term Tax-Free Savings: PPF (7.10%)
- Best for Guaranteed Corpus Growth: NSC and KVP
- Best for Regular Monthly Savings: RD
Government Keeps Rates Unchanged
The Ministry of Finance has decided not to revise any interest rates for the July–September 2026 quarter. Consequently, all Post Office Small Savings Schemes continue to offer the same returns that were applicable during the previous quarter. These rates will remain effective until 30 September 2026, after which the Government will announce fresh rates for the October–December 2026 quarter.
Post Office Small Savings Schemes remain one of the safest investment options available in India because they are backed by the Government. Whether you are looking for guaranteed returns, monthly income, retirement planning, tax-saving investments, or long-term wealth creation, there is a suitable scheme for every type of investor.
Before investing, compare the tenure, liquidity, tax implications, and return potential of each scheme to ensure it aligns with your financial goals.
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