Post Office small savings schemes are run by the Department of Posts on behalf of the Government of India. They are backed by the Government, which is why many investors use them for the part of their savings where capital protection matters most.
The main schemes
- Public Provident Fund (PPF): a 15-year account with annual deposit limits and partial withdrawal rules.
- National Savings Certificate (NSC): a five-year certificate with interest compounded annually.
- Kisan Vikas Patra (KVP): the deposit doubles over a tenure notified by the Government.
- Monthly Income Scheme (MIS): a five-year deposit that pays interest every month.
- Senior Citizens' Savings Scheme (SCSS): for individuals aged 60 and above, with quarterly interest.
- Sukanya Samriddhi Yojana (SSY): a savings account for a girl child below 10 years.
- Recurring Deposit (RD): fixed monthly deposits for five years.
How interest rates are set
The Ministry of Finance notifies interest rates for these schemes every quarter. For schemes like NSC, KVP, MIS and SCSS, the rate at the time you invest usually stays for the full tenure. For PPF and SSY, the rate can change every quarter during the life of the account.
Tax treatment
Some schemes qualify for Section 80C deduction under the old tax regime, and interest on some is taxable. Check the current rules for each scheme before you invest.
For the latest rates and rules, visit the India Post website or speak to us.