Post offices in India offer diverse investment options to cater for the needs of different types of investors, whether they are beginners or advanced investors.
These schemes are safe as they are backed up by the government and offer a comparative interest rate. Moreover, some of these schemes have tax exemptions.
Here is a calculator, which helps you compare all these schemes and helps you find an approximate return of each of these-
Post Office Saving Schemes 2025 Calculator
Min. Deposit: ₹1,000
This is the fixed tenure for the selected scheme.
Interest rates are subject to change quarterly by the Government.
Disclaimer: The returns calculated here are an estimate and may vary with the actual returns.
We have listed down the details of these post office savings schemes and their FD interest rates, which offer a safe and guaranteed return-
List of the Best Post Office Schemes to opt for in 2025
| Saving schemes | Interest Rate | Tenure | Minimum Amount | Tax Implications |
| Public Provident Fund (PPF) | 7.10% | 15 years | ₹500/year | Section 80C + Tax-free interest & maturity |
| Senior Citizen Savings Scheme (SCSS) | 8.20% | 5 years | ₹1,000 | Section 80C + No TDS |
| Sukanya Samriddhi Yojana (SSY) | 8.20% | 21 years | ₹250/year | Section 80C + Tax-free interest & maturity |
| National Savings Certificate (NSC) | 7.70% | 5 years | ₹1,000 | Section 80C + Interest taxable |
| Kisan Vikas Patra (KVP) | 7.50% | ~10 years 115 months (9 years and 7 months) | ₹1,000 | Investment doubles (no Section 80C) |
| Post Office Time Deposit (1-year) | 6.90% | 1 year | ₹1,000 | Section 80C + Interest taxable |
| Post Office Time Deposit (2-year) | 7.00% | 2 years | ₹1,000 | Section 80C + Interest taxable |
| Post Office Time Deposit (3-year) | 7.10% | 3 years | ₹1,000 | Section 80C + Interest taxable |
| Post Office Time Deposit (5-year) | 7.50% | 5 years | ₹1,000 | Section 80C + Interest taxable |
| Post Office Monthly Income Scheme (MIS) | 7.40% | 5 years | ₹1,000 | No Section 80C + Interest taxable (monthly) |
| Post Office Recurring Deposit (RD) | 6.70% | 5 years | ₹100/month | Section 80C + Interest taxable |
| Post Office Savings Account | 4.00% | No Lock in period | ₹500 | Section 80C + No TDS |
1. Public Provident Fund (PPF)
The PPF scheme is a long-term investment scheme by the government, for a period of 15 years and offers an attractive interest rate of 7.1% and a few other tax benefits.
The interest earned in this scheme is tax-exempt, which makes it an attractive instrument for investors, as there is no tax liability. However, you will have to mention the interest earned in this scheme in your income tax return.
The account can be extended in 5-year blocks after maturity, and a minimum amount of Rs 500 is required to keep the account active.
- Tenure: 15 years
- Minimum Investment: ₹500
- Interest rate: 7.5% P.A. compounded annually (tax-free)
- Tax: Section 80C + Tax-free interest & maturity
- Liquidity: Limited withdrawals allowed after the initial lock-in period
2. Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) is made for senior citizens above the age of 60. However, individuals who have taken retirement voluntarily under a Voluntary Retirement Scheme (VRS) or superannuation, and are 55 to 60 years and retired defence personnel can also enrol into this scheme.
The SCSS allows premature withdrawals of deposits anytime after the date of opening the account; however, a penalty will be applicable if you do so. If the account is closed before the expiry, 1% of the deposit amount will be deducted.
For example, if you invest Rs. 15 lakh in this scheme today, you will be receiving quarterly interest of Rs. 30,750.
- Tenure: 5 years
- Minimum Investment: ₹1,000
- Interest rate: 8.2% P.A. compounded quarterly
- Tax: Section 80C + No TDS (Tax will be deducted at source, only if the interest amount exceeds Rs 10,000 per year.)
- Liquidity: Limited withdrawals allowed after the initial lock-in period
3. Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana is a government initiative to promote the financial security of the girl child. This scheme is eligible for only girls under 10 years, and can be operated by parents/guardians.
This scheme can’t be closed 1 month before or 3 months after the child’s marriage. Multiple accounts can’t be opened in the name of one girl child.
Multiple accounts cannot be opened in the name of one girl child. A parent/guardian can open a maximum of two accounts in the name of two different girl children.
There can also be a penalty of Rs 50 if the amount is not deposited in a financial year. Premature closure or partial withdrawal (not more than 50% of the balance) can be done by a girl child on entering the age of 18 years for the purpose of marriage or higher education.
- Tenure: 21 years
- Minimum Investment: ₹250/year
- Interest rate: 8.2% P.A. compounded annually
- Tax: Section 80C + Tax-free interest & maturity upto1.5 Lakh per annum
- Liquidity: Partial withdrawal allowed after the girl turns 18
4. National Savings Certificate (NSC)
The National Saving Certificate is a secure, low-risk investment option backed by the Government of India. It is a fixed-income scheme ideal for individuals looking for guaranteed and stable returns.
This scheme provides tax benefits under Scheme 80C. However, the interest earned annually is taxable and gets reinvested and qualifies again for 80C deduction other than in the last year. This scheme can also be pledged against collateral with a bank or any other housing company while applying for loans.
Here is a list of public sector banks in India that you can trust.
The scheme does not have a minimum amount of investment of ₹1,000 and can be done in the denominations of ₹100, ₹500, ₹1000, ₹5000 and ₹10000.
- Tenure: 5 years
- Minimum Investment: ₹1,000
- Interest Rate: 7.7% per annum, compounded annually
- Tax: Section 80C + Interest taxable
- Liquidity: No premature withdrawal except in special cases
5. Kisan Vikas Patra (KVP)
The KVP scheme is a guaranteed returns scheme which focuses on long-term wealth doubling. The tenure for this scheme is 115 months, which is 9 years and 7 months.
As this is an assured doubling scheme, this is a good scheme for risk-averse investors.
- Tenure: ~115 months (9 years 7 months)
- Minimum Investment: ₹1,000
- Interest Rate: 7.5% per annum, compounded annually (designed to double your money)
- Tax: No Section 80C
- Liquidity: Withdrawal allowed after 2.5 years
6. Post Office Time Deposit (POTD)
This Post Office Time Deposit comes wth different tenure options for investment. The minimum amount that can be invested in any tenure is Rs 1000, and there is no upper limit on the investment.
An individual can hold multiple accounts under this scheme. An account can be opened in a single or joint account pattern, and investment in the name of a minor is not allowed.
Amounts can be transferred to another post office across the country. Once the deposit is matured, it will be automatically renewed for the same tenure again with the existing rate of interest on the day of maturity.
Post Office Time Deposit (1-year)
- Tenure: 1 year
- Minimum Investment: ₹1,000
- Interest Rate: 6.9% per annum, compounded quarterly
- Tax: Section 80C + Interest taxable
- Liquidity: Premature withdrawal allowed with a penalty
Post Office Time Deposit (2-year)
- Tenure: 2 years
- Minimum Investment: ₹1,000
- Interest Rate: 7.0% per annum, compounded quarterly
- Tax: Section 80C + Interest taxable
- Liquidity: Premature withdrawal allowed
Post Office Time Deposit (3-year)
- Tenure: 3 years
- Minimum Investment: ₹1,000
- Interest Rate: 7.1% per annum, compounded quarterly
- Tax: Section 80C + Interest taxable
- Liquidity: Premature withdrawal allowed
Post Office Time Deposit (5-year)
- Tenure: 5 years
- Minimum Investment: ₹1,000
- Interest Rate: 7.5% per annum, compounded quarterly
- Tax: Section 80C + Interest taxable
- Liquidity: Premature withdrawal allowed after 1 year
7. Post Office Monthly Income Scheme (MIS)
The POMIS is a unique monthly income scheme that offers a fixed income on the lump sum investment by the investor.
The account can be opened by any indian resident in a single or joint pattern. The joint account will have an equal share for all the holders. The scheme can also be opened by a minor, and a minor above the age of 10 can also operate the account.
The accounts can be transferred from one post office to another throughout the country. There is no major tax benefit in this scheme, and the interest is received on a monthly basis and is a part of the taxable income. There is no TDS on the interest, and deposits are exempt from wealth tax.
People who want to minimise their risk and are looking for a monthly income go for this scheme.
- Tenure: 5 years
- Minimum Investment: ₹1,000
- Interest Rate: 7.4% per annum, paid monthly (simple interest)
- Tax: No Section 80C + Interest taxable
- Liquidity: Premature closure allowed with a penalty
8. Post Office Recurring Deposit (RD)
The Post Office RD interest rate is 6.7% p.a., and is a monthly investment for a period of 5 years. This scheme is helpful for small investors as it allows them to invest as low as Rs 100, and there is no upper limit for the investment. In case the monthly investment is missed, there is a default fee of Rs 1 for every Rs 100.
Both joint and individual accounts can be opened, and accounts can be opened in the name of a minor as well. A single individual can hold multiple accounts.
There is no TDS deducted on the interest received. However, the income is taxable and in the hands of investors as per their individual tax slabs.
It is a great option for someone who is looking for a risk-free investment avenue to save some amount monthly.
- Tenure: 5 years
- Minimum Investment: ₹100/month
- Interest Rate: 6.7% per annum, compounded quarterly
- Tax: Section 80C + Interest taxable
- Liquidity: Premature closure allowed after 3 years
9. Post Office Savings Account
The Post Office Savings Account is like a savings account with a bank; however, this is with a post office. An individual can only open a single account, and the account can be transferred across the country. Minor accounts can also be opened under this scheme.
There is no TDS deducted in this scheme; however, a minimum balance of Rs 50/- is to be maintained.
A deduction of Rs. 10,000 per annum is available on your total savings account interest, including post office savings interest under Section 80TTA of the Income Tax Act, 1961.
- Tenure: No lock-in
- Minimum Investment: ₹500
- Interest Rate: 4% per annum (simple interest)
- Tax: Interest taxable (up to ₹10,000 exempt under 80TTA)
- Liquidity: Fully liquid
Why Invest in Post Office Savings Schemes?
Here are a few reasons why you should consider investing in a post office savings scheme in India.
1. Security
Saving in a Post Office savings scheme is a safe and secure way of keeping your money safe while it is growing. Investing in a savings scheme can turn out to be a lifesaver when you retire.
2. Tax Saving
Many saving schemes in India offer tax-saving benefits to the investors. You can take advantage of the tax deductions and tax exemption by investing in these schemes.
3. Habit building
Investing in safe and secure post office schemes can help build a financial habit of saving, which can also benefit in the long run.
You can also consider saving daily in the Jar app to build a money-saving habit.
4. Competitive Interest rate
The interest rate of the post office savings scheme is highly competitive and compared to the bank interest rate, which ranges from 4% to 8.2%.
5. Low risk
As these schemes are backed up and regulated by the government, they have a low risk comparatively.
Documents Required to Apply for Post Office Saving Schemes
The following are common documents that are usually required when investing in a Post Office savings scheme:
- Duly-filled relevant savings scheme form
- KYC Form
- Aadhaar Card
- PAN Card
- Job card
- Duly filled nomination form
- Passport-sized photographs
- Proof of date of birth/age proof or birth certificate in case of a minor account
- Other identity and address proof documents, such as a driver's license, voter’s ID, utility bills, etc.
