New Post Office Savings Scheme Interest Rates from 1st July 2026
The Government of India has notified the interest rates for all Post Office Small Savings Schemes for the quarter 1 July 2026 to 30 September 2026. As anticipated, the Government has retained the existing rates without any revision. This marks the ninth consecutive quarter in which interest rates have remained unchanged.
The notified rates will continue to be applicable throughout July, August, and September 2026. The next review is expected before the commencement of the October–December 2026 quarter.
If you are considering investing in a Post Office savings scheme during this period, below are the latest interest rates along with the key highlights of each investment option.
Latest Post Office Small Savings Scheme Interest Rates (1 July 2026 – 30 September 2026)
| Post Office Scheme | Interest Rate (Per Annum) |
|---|---|
| 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 the July–September 2026 quarter.
1. Post Office Savings Account – Interest Rate: 4.00%
The Post Office Savings Account offers features similar to a regular bank savings account. Account holders can deposit and withdraw funds as needed and receive facilities such as a passbook and ATM services, wherever available.
Interest Rate
4.00% per annum
Interest is calculated according to the rules applicable to Post Office savings accounts.
Key Highlights
- Government-backed savings option.
- High liquidity with easy deposits and withdrawals.
- Suitable for individuals seeking a safe place to park short-term funds.
2. Post Office Time Deposit (Fixed Deposit)
The Post Office provides fixed deposit options with four different investment tenures.
| Tenure | Interest Rate |
| 1 Year | 6.90% |
| 2 Years | 7.00% |
| 3 Years | 7.10% |
| 5 Years | 7.50% |
Interest is compounded every quarter and paid along with the maturity amount.
Key Highlights
- Backed by the Government of India.
- Assured returns over the chosen tenure.
- Suitable for investors with a low-risk profile.
- The 5-year Time Deposit qualifies for tax benefits under Section 80C, subject to the applicable provisions of the Income-tax Act.
3. Post Office Recurring Deposit (RD)
The Post Office Recurring Deposit Scheme is ideal for individuals who prefer building savings through regular monthly contributions.
Interest Rate
6.70% per annum
Key Highlights
- Fixed monthly deposits.
- Maturity period of five years.
- Encourages disciplined and systematic savings.
- Well suited for salaried employees and small investors.
4. Post Office Monthly Income Scheme (MIS)
The Monthly Income Scheme is a preferred investment choice for those looking to receive a steady monthly income while keeping their capital secure.
Interest Rate
7.40% per annum
Key Highlights
- Monthly interest payment.
- Five-year investment tenure.
- Government-backed safety.
For instance, an investment of ₹1,00,000 earns annual interest of ₹7,400, resulting in a monthly income of approximately ₹617.
5. National Savings Certificate (NSC)
The National Savings Certificate is a popular long-term savings instrument that combines guaranteed returns with tax-saving benefits.
Interest Rate
7.70% per annum
Key Highlights
- Five-year lock-in period.
- Interest is compounded annually.
- Entire accumulated amount is paid on maturity.
- Eligible for deduction under Section 80C, subject to the applicable income tax provisions.
6. Public Provident Fund (PPF)
The Public Provident Fund (PPF) continues to be one of the most trusted long-term investment options for building wealth while enjoying tax benefits.
Interest Rate
7.10% per annum
Key Features
- Investment tenure of 15 years.
- Minimum annual contribution of ₹500.
- Maximum contribution allowed is ₹1.5 lakh in a financial year.
- Interest earned is exempt from tax under the prevailing tax provisions.
- The maturity amount is also tax-free, subject to the applicable laws.
PPF is an excellent choice for investors seeking long-term, tax-efficient wealth creation with government-backed security.
7. Kisan Vikas Patra (KVP)
Although originally introduced for farmers, Kisan Vikas Patra (KVP) is open to all eligible investors.
Interest Rate
7.50% per annum
Maturity Period
The invested amount doubles in 115 months, equivalent to 9 years and 7 months.
Key Features
- Government-backed investment.
- Assured returns on maturity.
- Suitable for investors with medium- to long-term financial goals.
8. Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana continues to offer one of the highest interest rates among all Post Office Small Savings Schemes.
Interest Rate
8.20% per annum
Key Features
- Available for girl children below 10 years of age.
- Minimum annual deposit of ₹250.
- Maximum annual investment of ₹1.5 lakh.
- Contributions can be made for 15 years.
- The account matures after 21 years, subject to the scheme’s provisions.
- Partial withdrawals are permitted for higher education, subject to prescribed conditions.
SSY is a suitable investment option for parents and guardians planning for their daughter’s future education or marriage expenses.
9. Senior Citizens Savings Scheme (SCSS)
The Senior Citizens Savings Scheme (SCSS) remains one of the most attractive government-backed investment options for retirees seeking regular income.
Interest Rate
8.20% per annum
Key Features
- Available to eligible senior citizens.
- Interest is paid every quarter.
- Investment tenure of 5 years.
- Extension after maturity is permitted in accordance with the scheme rules.
- Maximum investment limit of ₹30 lakh.
For retired individuals looking for stable and predictable returns, SCSS continues to be a preferred choice.
Which Post Office Scheme Offers the Best Returns?
For the July–September 2026 quarter, the leading schemes in different categories are:
Category Recommended Scheme Highest Interest Rate Sukanya Samriddhi Yojana (8.20%) Best Option for Senior Citizens Senior Citizens Savings Scheme (8.20%) Ideal for Regular Monthly Income Monthly Income Scheme (7.40%) Best for Long-Term Tax-Free Savings Public Provident Fund (7.10%) Best for Guaranteed Wealth Accumulation National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) Best for Monthly Savings Habit Post Office Recurring Deposit (RD)
Interest Rates Remain Unchanged
The Ministry of Finance has decided to retain the existing interest rates for all Post Office Small Savings Schemes for the July–September 2026 quarter.
As a result, investors will continue to earn the same returns that were applicable during the previous quarter. These rates will remain in force until 30 September 2026, after which the Government will review and notify the interest rates for the October–December 2026 quarter.
Conclusion
Post Office Small Savings Schemes continue to be among the safest investment avenues in India due to their Government backing. Whether your objective is guaranteed returns, tax-efficient investing, retirement planning, regular monthly income, or long-term wealth creation, there is a suitable scheme to meet your financial needs.
Before making an investment decision, compare factors such as investment tenure, liquidity, expected returns, and tax benefits to choose the scheme that best aligns with your financial goals and risk profile.