The Ministry of Finance sets small savings rates every quarter. For Oct–Dec 2026 all rates are unchanged from the previous quarter. The next review is due before 1 January 2027.
| Scheme | Rate a year | How interest works |
|---|---|---|
| Post Office Savings Account | 4.0% | Interest on daily balance, credited yearly |
| 1-year Time Deposit | 6.9% | Compounded quarterly, paid yearly |
| 2-year Time Deposit | 7.0% | Compounded quarterly, paid yearly |
| 3-year Time Deposit | 7.1% | Compounded quarterly, paid yearly |
| 5-year Time Deposit | 7.5% | Qualifies for 80C (old regime) |
| 5-year Recurring Deposit | 6.7% | Compounded quarterly |
| Monthly Income Scheme (POMIS) | 7.4% | Paid monthly; max ₹9 lakh single, ₹15 lakh joint |
| Senior Citizens Savings Scheme (SCSS) | 8.2% | Paid quarterly; max ₹30 lakh |
| National Savings Certificate (NSC) | 7.7% | Compounded yearly, paid at 5-year maturity; 80C |
| Public Provident Fund (PPF) | 7.1% | Compounded yearly; tax-free; 15 years |
| Kisan Vikas Patra (KVP) | 7.5% | Doubles in 115 months |
| Sukanya Samriddhi Yojana (SSY) | 8.2% | Compounded yearly; tax-free |
Which scheme for which need
- Highest rate: SCSS and Sukanya Samriddhi at 8.2%, but each has eligibility rules (age 60+ for SCSS, a daughter under 10 for SSY).
- Tax-free: PPF and SSY interest is fully tax-free. All other post office interest is taxed at your slab rate.
- Regular income: POMIS pays monthly, SCSS quarterly.
- Locked vs flexible: time deposits can be closed after 6 months with a lower rate; PPF is locked for 15 years with partial withdrawals from year 7.
All these schemes are backed by the Government of India, so there is no limit on deposit insurance as there is with banks.