Post Office Interest Rates 2026 for various schemes range from 4% to 8.2% p.a., with the highest rates offered by the Senior Citizens Savings Scheme and Sukanya Samriddhi Yojana. These schemes provide secure, government-backed investment options for Indian citizens, offering stable returns and capital protection through the Union Ministry of Finance.
| Scheme Name | Current Interest Rate (2026) | Compounding Frequency | Key Feature |
|---|---|---|---|
| Post Office Fixed Deposit (PO FD) / National Savings Time Deposit | 6.90% – 7.50% p.a. (for 1 to 5 years tenure, effective April 01 2026, to June 30, 2026) | Quarterly (paid annually) | Backed by Government of India, no higher rates for senior citizens, 5-year FD qualifies for Section 80C tax deduction |
| Post Office Recurring Deposit (RD) | 6.7% p.a. (for FY 2026–27, compounded quarterly) | Quarterly | Encourages disciplined savings, minimum deposit ₹100, loan up to 50% of balance after 12 deposits |
| Post Office Monthly Income Scheme (POMIS) | 7.4% p.a. (effective April–June 2026 quarter) | Not specified (interest paid monthly) | Provides regular monthly income, tenure of five years, no tax benefit under Section 80C |
| Kisan Vikas Patra (KVP) | Not specified (known for doubling money in 115 months) | Not specified | Doubles investor money in 115 months |
| Senior Citizens Savings Scheme (SCSS) | 8.2% p.a. (paid quarterly, effective April–June 2026 quarter) | Quarterly | Designed for retirees, offers higher interest rates, eligible for Section 80C deduction, max limit ₹30 Lakh per individual |
| Sukanya Samriddhi Yojana (SSY) | 8.2% p.a. (compounded annually, effective April–June 2026 quarter) | Annually | Dedicated for financial security of a girl child, highest small-savings interest rate, full tax exemption on maturity (EEE category), deposits qualify for Section 80C deduction |
| Public Provident Fund (PPF) | 7.1% (effective April–June 2026 quarter) | Not specified | Offers tax benefits under Section 80C |
| National Savings Certificates (NSC) | 7.7% p.a. (compounded annually but paid at maturity, effective April–June 2026 quarter) | Annually | 5-year fixed-income instrument, interest earned is reinvested and qualifies for 80C deduction in the first 4 years, popular for quick tax-saving |
| Post Office Savings Account | 4.00% p.a. (effective January to March 2026) | Annually | Minimum deposit ₹20, offers cheque book, ATM, mobile and e-banking services, interest up to ₹10,000 tax-exempt under Section 80TTA |
| Post Office Tax Saving FD | 7.50% p.a. (for the general public, effective April 01 2026, to June 30, 2026) | Quarterly (paid annually) | Qualifies for tax deduction under Section 80C of the Income-tax Act, 1961, 5-year lock-in period |
Post Office Scheme Interest Rates (2026)
These Post Office schemes offer competitive interest rates, often exceeding those from scheduled banks for comparable tenures, making them a strong choice for risk-averse investors. For instance, the Post Office Time Deposit is considered better than SBI FD rates for similar tenures (Source: India Post).
Post Office FD Interest Rates 2026
Post Office Fixed Deposits (PO FDs), also known as National Savings Time Deposits, offer interest rates ranging from 6.90% to 7.50% p.a. For tenures of 1 to 5 years, as of April 1, 2026, to June 30, 2026. These FDs provide sovereign guarantee from the Government of India, ensuring capital protection and income certainty for investors.
| Tenure | Interest Rate (p.a.) | Effective Period | Minimum Deposit (₹) |
|---|---|---|---|
| 1 year | 6.90% | April 01, 2026, to June 30, 2026 | 1,000 |
| 2 years | 7.00% | April 01, 2026, to June 30, 2026 | 1,000 |
| 3 years | 7.10% | April 01, 2026, to June 30, 2026 | 1,000 |
| 5 years | 7.50% | April 01, 2026, to June 30, 2026 | 1,000 |
| 5 years (Tax Saving FD) | 7.50% | April 01, 2026, to June 30, 2026 | 1,000 |
| 1 year | 6.90% | January 1, 2026, to March 31, 2026 | 1,000 |
| 2 years | 7.00% | January 1, 2026, to March 31, 2026 | 1,000 |
| 3 years | 7.10% | January 1, 2026, to March 31, 2026 | 1,000 |
Post Office FD Interest Rates by Tenure (2026)
The interest rates for Post Office FDs are reviewed quarterly by the Government of India, based on the performance of government securities. Investors in a 5-year Post Office Time Deposit account can also qualify for tax deductions under Section 80C of the Income-tax Act, 1961.
Post Office RD Interest Rate 2026
The Post Office Recurring Deposit (RD) scheme offers an interest rate of 6.7% per annum for FY 2026–27, compounded quarterly. This rate applies to the standard 5-year tenure and is reviewed by the Government of India each quarter.
RD accounts are a stable savings option, backed by a sovereign guarantee, and require a minimum monthly investment of ₹100. For more details on other savings options, you can check SBI Interest Rates 2026.
Interest earned on Post Office RDs is subject to TDS at 10% if IT exceeds ₹10,000 in a financial year, provided a PAN is active. Without a PAN, the TDS rate increases to 20%.
KVP Interest Rate & Doubling Period
Kisan Vikas Patra (KVP) is a Post Office savings scheme designed to double an investor’s money over a specified period. As of 2026, the KVP scheme aims to double your investment in 115 months, offering a fixed return.
This scheme is ideal for risk-averse investors seeking guaranteed returns and capital protection, backed by the Government of India.
- Current Interest Rate (2026): The KVP interest rate is set to ensure the investment doubles in 115 months. This rate is reviewed quarterly by the government.
- Doubling Period: Your invested principal in KVP will double in 115 months (9 years and 7 months), as per the latest available figures for 2026.
- Minimum Investment: You can start a KVP account with a minimum investment of ₹1,000. Investments are accepted in multiples of ₹100 thereafter.
- Maximum Investment: There is no upper limit on the amount you can invest in KVP, making IT suitable for larger sums.
- Eligibility: Any Indian citizen above 18 years can purchase KVP certificates. Minors can also hold KVP through a guardian.
- Premature Withdrawal: KVP allows premature withdrawal after 2 years and 6 months from the date of issue, though IT may affect the overall return.
- Taxation: While the interest earned on KVP is taxable, TDS is not deducted at source. The investment itself does not qualify for Section 80C benefits.
- Transferability: KVP certificates can be transferred from one person to another or from one post office to another.
KVP offers a straightforward, secure investment option for long-term wealth creation, with a clear doubling period for your capital.
Post Office vs Bank FD Rates 2026
Post Office Fixed Deposits (PO FDs) generally offer competitive interest rates, ranging from 6.90% to 7.50% p.a. For 1-5 year tenures as of April-June 2026. Unlike bank FDs, Post Office FDs are fully backed by a sovereign guarantee from the Government of India, providing complete capital protection without an upper limit.
While banks like SBI offer FD rates around 6.50% p.a. For general citizens, they typically provide an additional 0.25% to 0.75% interest for senior citizens, a benefit not available with Post Office FDs. Investors should compare these aspects, including tax implications, before deciding.
| Parameter | Post Office FD | Top Bank FD (e.g., SBI) | Advantage |
|---|---|---|---|
| Interest Rates (General Public) | 6.90% – 7.50% p.a. (for 1-5 years, effective April 01 – June 30, 2026) | 6.50% p.a. (Scheduled Banks, as of 2026); 6.8%–7.8% (depending on bank, as of 2026) | Post Office FDs generally provide higher interest rates, especially for long-term deposits (compared to some banks). |
| Interest Rates (Senior Citizens) | 6.90% – 7.50% p.a. (same as general public, as of 2026) | Higher rates, usually between 0.25% and 0.75% extra (compared to general public rates) | Bank FDs offer higher rates for senior citizens, unlike Post Office FDs. |
| Sovereign Guarantee/Insurance | Fully protected, no upper limit (backed by Government of India) | Insured by DICGC only up to ₹5 lakh per depositor per bank | Post Office FDs offer higher capital protection with a sovereign guarantee for the entire amount. |
| Tax Benefits (Section 80C) | 5-year tenure qualifies for Section 80C benefits (up to ₹1.5 lakh, if filing under Old Tax Regime in 2026) | Tax-saving FDs (5-year tenure) qualify for Section 80C benefits | Both offer Section 80C benefits for 5-year tax-saving FDs. |
| TDS on Interest | Interest earned from Post Office FDs doesn’t attract any TDS (unlike banks) | TDS applicable if interest earnings exceed ₹50,000 annually (for regular investors, as per Section 80TTB) | Post Office FDs do not attract TDS on interest earned. |
| Interest Rate Mechanism | Rates adjusted at the start of each quarter by the Government of India | Rates vary per bank and are governed by individual banks | Post Office FD rates are government-backed and adjusted quarterly, offering stability. |
| Minimum Deposit | ₹1,000 (for most tenures) | ₹1,000 (varies by bank) | Both offer similar low minimum deposit requirements. |
The sovereign guarantee and absence of TDS on Post Office FD interest make them a strong choice for risk-averse investors, despite banks offering higher rates for senior citizens. For more details on bank rates, review the SBI interest rates 2026.
Eligibility & How to Open Account
Opening a Post Office scheme account in India requires specific eligibility criteria and a straightforward application process. Most schemes are open to resident Indian citizens, with minors also able to open accounts under guardianship or independently from age 10. The application can be completed either online via the India Post Internet Banking portal or by visiting a local post office branch.
- General Eligibility: Most Post Office schemes, including FD and RD, are available to resident Indian citizens above 18 years of age. Minors aged 10 years and above can open accounts in their own name, while those below 10 require a guardian.
- Joint Accounts: Individuals can open accounts jointly, typically with up to three adults, for schemes like Post Office Recurring Deposit (RD) and Post Office Monthly Income Scheme (POMIS).
- Required Documents: Applicants generally need identity proof (Aadhaar, PAN Card, Passport) and address proof (Aadhaar, Utility Bill) for KYC verification. An original identity proof is needed for in-branch verification.
- Nomination Facility: All Post Office schemes offer a nomination facility, allowing the account holder to designate a nominee to receive the benefits in case of their demise. This requires a witness signature during account opening.
- Online Application Process: For existing India Post Internet Banking users, accounts like Post Office FD can be opened online. Log in to ebanking.indiapost.gov.in, navigate to ‘General Services’, then ‘Service Request’, and select ‘New Request’.
- In-Branch Application: New applicants or those preferring offline methods can visit any local post office across India. Fill out the application form, submit required documents, and make the initial deposit.
- Minimum Deposit: Post Office FD schemes require a minimum deposit of ₹5,000, making them accessible small-savings options. For Public Provident Fund (PPF) accounts, the minimum annual deposit is ₹500.
Understanding these eligibility requirements and the application process helps investors easily access various Post Office schemes and their associated interest rates for 2026.
Tax Benefits on Post Office Schemes
Several Post Office schemes offer significant tax benefits under the Income Tax Act, 1961, making them attractive investment options for tax planning. As of 2026, investments in specific schemes can qualify for deductions under Section 80C, while interest income from others may be partially or fully exempt.
- Post Office Tax Saving FD: Investments in a 5-year Post Office Fixed Deposit (Time Deposit) qualify for a tax deduction under Section 80C of the Income-tax Act, 1961. The interest rate on this scheme is 7.50% p.a. For the general public as of 2026.
- Public Provident Fund (PPF) Account: Contributions to a PPF account are eligible for deduction under Section 80C, up to ₹1.5 lakh per financial year. The interest earned and maturity amount are also tax-exempt, falling under the EEE (Exempt-Exempt-Exempt) category.
- Senior Citizens Savings Scheme (SCSS): This scheme offers a tax deduction on investments under Section 80C, up to ₹1.5 lakh annually. Interest income from SCSS is taxable, but TDS is not deducted if the interest is below ₹50,000 in a financial year for senior citizens.
- Sukanya Samriddhi Yojana (SSY): Deposits made into an SSY account for a girl child are eligible for Section 80C deduction, up to ₹1.5 lakh per year. The interest earned and the maturity amount are fully tax-exempt, providing a triple tax benefit.
- Post Office Savings Account: Interest earned on a Post Office Savings Account is eligible for a deduction of up to ₹10,000 per year under Section 80TTA of the Income Tax Act, 1961, for individuals and HUFs. The annual interest rate for this account is 4% p.a. As of 2026.
These tax benefits enhance the overall returns from Post Office schemes, making them a preferred choice for risk-averse investors in India.
Post Office Interest Rate Calculator
Calculating potential returns on Post Office schemes helps you plan your savings effectively. As of 2026, Post Office Fixed Deposits (FDs) offer rates from 6.90% to 7.50% p.a., while Recurring Deposits (RDs) yield 6.7% p.a. (FY 2026–27, compounded quarterly).
You can use online calculators to estimate maturity amounts for schemes like Post Office FDs, RDs, and Kisan Vikas Patra (KVP). For example, a ₹1 lakh investment in a Post Office Monthly Income Scheme (POMIS) at 7.4% p.a. (FY 2025-26) would provide a fixed monthly payout of ₹550 over five years.
Key Takeaways
- Post Office FD rates range from 6.90% to 7.50% p.a. For 1 to 5-year tenures (effective January 1 to March 31, 2026).
- The Post Office RD interest rate is 6.7% p.a., compounded quarterly, for FY 2026–27.
- Senior Citizens Savings Scheme and Sukanya Samriddhi Yojana offer the highest Post Office interest rate at 8.2% in 2026.
Compare current Post Office interest rates and use an online calculator to estimate your returns before investing.
Frequently Asked Questions (FAQs)
What are the Post Office FD interest rates for 2026?
As of April-June 2026, Post Office Fixed Deposit (FD) interest rates range from 6.90% to 7.50% p.a. for tenures between 1 and 5 years. The 5-year Post Office Tax Saving FD offers 7.50% p.a., backed by a sovereign guarantee from the Government of India.
What is the Post Office RD interest rate for 2026?
For the financial year 2026-27, the Post Office Recurring Deposit (RD) interest rate is 6.7% per annum, compounded quarterly. This rate provides a stable and reliable option for consistent long-term investments, with rates reviewed periodically by the government.
Are Post Office FDs safe in India?
Yes, Post Office FDs are considered extremely safe in India because they carry a sovereign guarantee from the Government of India. Your entire principal and earned interest are fully protected, unlike bank FDs which are insured by DICGC only up to ₹5 lakh per depositor per bank.
Do Post Office FDs offer higher rates for senior citizens?
No, unlike many banks and NBFCs, India Post does not offer higher interest rates on its Post Office FD schemes specifically for senior citizens. The interest rates are uniform for all depositors across the various tenures offered.
What is the minimum deposit for a Post Office FD?
The minimum deposit required to open a Post Office Fixed Deposit (Time Deposit) account is ₹1,000. You can open these accounts at any local post office across India, making them accessible for small savings.
Is interest from Post Office FDs tax-free?
Interest earned from Post Office FDs is taxable as per your income tax slab, though IT does not attract TDS at source, unlike many bank FDs. However, investments in the 5-year Post Office Time Deposit qualify for tax benefits under Section 80C of the Income Tax Act.
How long does IT take for money to double in a Post Office FD?
At the current Post Office FD rates for 2026, a Post Office FD (Time Deposit) will take approximately 9 to 11 years to double your money. This calculation is based on the prevailing interest rates and compounding frequency.
