What is the story about?
Postal savings schemes have once again come into focus as discussions continue around possible changes in Provident Fund (PF) linked interest rates. While there has been no official announcement of any major revision, experts believe that any changes, if they happen, are likely to be gradual. Hence, government-backed saving options continue to attract people who prefer safety and predictability over risk.
One of the most talked-about post office savings schemes remains the National Savings Certificate (NSC). The scheme currently offers an annual interest rate of 7.7% with a fixed maturity period of five years. Since the interest is compounded every year and paid at maturity, investors can build a steady corpus without worrying about market ups and downs. Being backed by the government, NSC also assures full protection of the invested amount.
“NSC remains one of the few instruments that marry simplicity with security. The government guarantee eliminates default risk, and the annual compounding ensures that even modest investments grow meaningfully over the term,” says DrArvind Menon, a Mumbai-based financial analyst.
Tax benefits further add to NSC’s appeal. Investments made under the scheme qualify for deductions under Section 80C of the Income Tax Act, making it useful for salaried individuals who want to save tax while planning for long-term goals such as education or retirement.
Alongside NSC, the Public Provident Fund (PPF) continues to be a preferred choice for long-term savers. PPF currently offers an interest rate of 7.1%. Its biggest advantage lies in its tax treatment, PPF follows the EEE model, which means the investment, the interest earned, and the maturity amount are all completely tax-free. With a long lock-in period, PPF is often chosen by investors who want disciplined saving with assured returns and strong tax benefits.
Post office interest rate table 2026
One of the most talked-about post office savings schemes remains the National Savings Certificate (NSC). The scheme currently offers an annual interest rate of 7.7% with a fixed maturity period of five years. Since the interest is compounded every year and paid at maturity, investors can build a steady corpus without worrying about market ups and downs. Being backed by the government, NSC also assures full protection of the invested amount.
“NSC remains one of the few instruments that marry simplicity with security. The government guarantee eliminates default risk, and the annual compounding ensures that even modest investments grow meaningfully over the term,” says DrArvind Menon, a Mumbai-based financial analyst.
Tax benefits further add to NSC’s appeal. Investments made under the scheme qualify for deductions under Section 80C of the Income Tax Act, making it useful for salaried individuals who want to save tax while planning for long-term goals such as education or retirement.
Alongside NSC, the Public Provident Fund (PPF) continues to be a preferred choice for long-term savers. PPF currently offers an interest rate of 7.1%. Its biggest advantage lies in its tax treatment, PPF follows the EEE model, which means the investment, the interest earned, and the maturity amount are all completely tax-free. With a long lock-in period, PPF is often chosen by investors who want disciplined saving with assured returns and strong tax benefits.
Post office interest rate table 2026
| Scheme Name | Interest Rate | Tenure |
| Post Office Savings Account | 4.0% | No fixed tenure |
| 1-Year Time Deposit (FD) | 6.9% | 1 year |
| 2-Year Time Deposit (FD) | 7.0% | 2 years |
| 3-Year Time Deposit (FD) | 7.1% | 3 years |
| 5-Year Time Deposit (FD) | 7.5% | 5 years |
| Recurring Deposit (RD) | 6.7% | 5 years |
| Senior Citizen Savings Scheme | 8.2% | 5 years |
| Monthly Income Scheme (MIS) | 7.4% | 5 years |
| National Savings Certificate (NSC) | 7.7% | 5 years |
| Public Provident Fund (PPF) | 7.1% | 15 years |
