When it comes to safe and government-backed investments, high yield postal savings schemes from India Post remain a top choice for Indian investors. Whether you want a stable monthly income, long-term tax-free growth, or a risk-free way to double your money, these post office savings schemes are worth considering. This guide from Rupeeshastra.com covers the best post office plans, updated interest rates, calculators, tax benefits, and much more.
Why Choose Post Office Savings Schemes?
- Government Security: All schemes are backed by the Government of India, ensuring safety.
- Fixed Returns: Enjoy predictable payouts. Interest rates are reviewed every quarter, but once you invest, rates are fixed for the tenure.
- Tax Benefits: Many schemes qualify for Section 80C deductions.
- Simple Accessibility: Open an account at any post office nationwide with minimal documentation.
- Wide Range of Choices: From children to seniors, everyone can find a suitable scheme.
Overview: Major High Yield Post Office Schemes
1. Post Office Monthly Income Scheme (POMIS)
Interest Rate: 7.4% p.a. (as of July–September 2025, payable monthly)
Tenure: 5 years, fixed
Investment Amount: ₹1,000 minimum; Maximum of ₹9 lakh (single), ₹15 lakh (joint)
Target Investors: Retirees, parents, and anyone seeking regular monthly income.
Tax: Interest fully taxable; no TDS deducted.
Suppose you invest ₹9 lakh—your monthly interest payout will be ₹5,550. With a joint account, invest ₹15 lakh and receive ₹9,250 monthly.
- For custom calculations, use an online post office monthly income scheme calculator to check your potential returns.
Special Note for Seniors: The post office monthly income scheme for senior citizens pairs well with the Senior Citizen Savings Scheme for enhanced stability in retirement.
2. Post Office Recurring Deposit (RD) Scheme
Interest Rate: 6.7% p.a., compounded quarterly
Tenure: 5 years
Minimum Deposit: ₹100/month (multiples of ₹10)
For example, investing ₹1,000 per month in the post office rd scheme 1000 per month yields around ₹70,172 after 5 years.
3. Senior Citizen Savings Scheme (SCSS)
Interest Rate: 8.2% p.a. (paid quarterly)
Tenure: 5 years (extendable by 3 years)
Limit: ₹30 lakh per individual
Section 80C Tax Benefits
Who can invest? Individuals aged 60+ (or 55+ after VRS). Ideal for retirees seeking high assured returns.
4. Post Office Savings Account
Interest Rate: 4.0% p.a.
Minimum Balance: ₹500
Tax Benefit: Up to ₹10,000 interest per year is tax-free under Section 80TTA.
The post office savings account interest rate is competitive and this account is your gateway to other schemes.
5. Post Office Time Deposit (TD) Scheme
- 1-Year: 6.9% p.a.
- 2-Year: 7.0% p.a.
- 3-Year: 7.1% p.a.
- 5-Year: 7.5% p.a. (Eligible for Section 80C deduction)
Suitable for those seeking low-risk returns over a fixed period.
6. Kisan Vikas Patra (KVP): Scheme to Double Your Money
Interest Rate: 7.5% p.a. (compounded annually)
Doubling Period: 115 months (about 9 years, 7 months)
Minimum Investment: ₹1,000
KVP is well-known as the post office scheme to double the money—a risk-free option for capital multiplication.
7. Public Provident Fund (PPF)
Interest Rate: 7.1% p.a. (compounded yearly)
Tenure: 15 years (can be extended)
Deposit Limit: ₹500–1.5 lakh per annum
Tax Benefit: Full EEE status. Investments, interest, and maturity proceeds are tax-free.
PPF is perfect for long-term goals like retirement or your child’s education.
8. Sukanya Samriddhi Yojana (SSY)
Interest Rate: 8.2% p.a.
Eligibility: For girl children under 10 (account opened by guardian)
Deposit Range: ₹250–1.5 lakh per year
The scheme offers full tax exemption and is one of the best ways to build a secure future for a girl child.
9. National Savings Certificate (NSC)
Interest Rate: 7.7% p.a. (compounded annually, paid at maturity)
Tenure: 5 years
Tax Savings: Section 80C benefit
Minimum Deposit: ₹1,000 (no max limit)
Excellent for medium-term income and tax benefits without market risk.
Latest Interest Rates: Post Office Schemes (July–September 2025)
| Scheme | Interest Rate |
|---|---|
| Post Office Savings Account | 4.0% |
| Recurring Deposit (RD) | 6.7% |
| Time Deposit (1/2/3/5 Yr) | 6.9%–7.5% |
| Monthly Income Scheme (MIS) | 7.4% |
| Senior Citizens’ Savings Scheme (SCSS) | 8.2% |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana (SSY) | 8.2% |
| National Savings Certificate (NSC) | 7.7% |
| Kisan Vikas Patra (KVP) | 7.5% |
*Rates above are as per the quarterly announcement for July–September 2025. For new interest rates on post office schemes, refer to government notifications each quarter.
How to Open a Post Office Account
- Visit any nearby post office or check if online applications are available in your city.
- Bring your KYC documents: PAN, Aadhaar, photos, and address proof.
- Fill out the prescribed form and submit it with your initial deposit.
- Nominate a beneficiary—it’s optional but highly advisable.
People had below queries also
- post office monthly income scheme
- new interest rates on post office schemes
- post office rd scheme 1000 per month
- post office monthly income scheme calculator
- post office scheme to double the money
- post office monthly income scheme latest interest rate
- post office monthly income scheme for senior citizens
- post office savings account interest rate
Frequently Asked Questions
Which post office scheme is best for monthly income?
The post office monthly income scheme (POMIS), offering a 7.4% monthly payout, is best for regular income. For seniors, the Senior Citizen Savings Scheme is a strong companion.
Is my money safe in post office schemes?
Yes—these plans are fully government-backed, protecting your principal.
How can I double my money securely in a post office scheme?
The classic Kisan Vikas Patra is known as the post office scheme to double the money in just under a decade at current rates.
Do post office schemes give tax benefits?
Schemes like PPF, 5-Year Time Deposit, NSC, SSY, and SCSS offer Section 80C benefits. Most interest income is taxable except PPF and SSY.
How do I use a post office monthly income scheme calculator?
Just enter your investment amount in any post office monthly income scheme calculator online to see your monthly payout at the post office monthly income scheme latest interest rate.
Tips for Maximizing Your Investment
- Diversify across different schemes to match your income and growth needs.
- Reinvest payouts: For example, deposit MIS payouts into an RD or TD for compounding benefits.
- Review rates every quarter; interest rates are set by the government and may change for new deposits.
- Consider blending fixed-return and tax-saving options for optimal financial planning.
Begin your journey with these high-yield, low-risk postal savings schemes today—from India Post’s trusted portfolio!
Jaspal Singh is an international business professional with 19+ years of experience in the agri-machinery industry. He writes practical guides on career planning, finance, and migration.