Nine schemes, nine different tenures, nine different rule books. This guide puts the eligibility, joint-account, tax and premature-closure rules for each of them side by side, straight from the gazette notifications.
Quick snapshot
- Every post office scheme is notified under the Government Savings Promotion Act, 1873, with the General Rules, 2018 filling the gaps.
- Interest rates are notified quarterly by the Ministry of Finance. The memorandum dated 30 September 2026 kept the rates for the third quarter of FY 2026-27 unchanged.
- Tenures run from none at all (savings account) to 21 years (Sukanya Samriddhi).
- PPF cannot be held jointly. Time Deposit, MIS, NSC and KVP allow up to three adults.
- A minor aged 10 or above may open and operate an account where the scheme permits it.
- Nomination is in Form 10, up to four nominees, and may be varied any time before maturity.
- Only PPF and Sukanya Samriddhi pay interest that is exempt from tax. The rest pay taxable interest.
India Post runs nine savings schemes: the Savings Account, National Savings Recurring Deposit, National Savings Time Deposit, Monthly Income Scheme, Senior Citizens Savings Scheme, National Savings Certificates (VIII Issue), Kisan Vikas Patra, Public Provident Fund and the Sukanya Samriddhi Account — plus the Mahila Samman Savings Certificate, 2023. Each is a separate notified scheme with its own minimum deposit, tenure, joint-holding rule and exit penalty. Rates are fixed quarterly by the Ministry of Finance, so the rate you earn is the rate notified for the quarter in which you deposit. PPF and Sukanya Samriddhi are the only two whose interest is tax-exempt.
1. All the schemes at a glance
This is the table most people actually came for. Everything in it comes from the scheme notifications and the General Rules, not from rate charts, so it does not go stale every quarter.
| Scheme | Tenure | Who can open | Joint account | Interest taxable? |
|---|---|---|---|---|
| Savings Account (SB) | Open-ended | Resident adult; minor through guardian; minor aged 10+ in own name | Yes | Taxable, with a separate deduction available for savings interest |
| Recurring Deposit (RD) | 5 years, extendable by 5 | Resident adult; minor 10+; guardian for a minor | Yes | Taxable |
| Time Deposit (TD) | 1, 2, 3 or 5 years | Resident adult; minor 10+; guardian for a minor | Yes, up to three adults | Taxable |
| Monthly Income Scheme (MIS) | 5 years | Resident adult; minor through guardian | Yes, up to three adults | Taxable |
| Senior Citizens Savings Scheme (SCSS) | 5 years, extendable in 3-year blocks | Age 60+; 55–60 on retirement in defined circumstances; defence personnel from 50 | Only with spouse | Taxable |
| National Savings Certificates (VIII Issue) | 5 years | Resident adult; minor 10+; guardian for a minor | Yes, up to three adults | Taxable |
| Kisan Vikas Patra (KVP) | Till the amount doubles | Resident adult; minor 10+; guardian for a minor | Yes, up to three adults | Taxable |
| Public Provident Fund (PPF) | 15 years, extendable in 5-year blocks | Resident individual; guardian for a minor | No | Exempt |
| Sukanya Samriddhi Account (SSA) | 21 years from opening | Guardian, for a girl child below 10 | No — single holder only | Exempt |
| Mahila Samman Savings Certificate, 2023 | 2 years | Woman, or guardian for a girl child | No | Taxable |
Two notes on this table. First, the Mahila Samman Savings Certificate was announced as a one-time scheme with a limited enrolment window, so confirm at the counter whether new accounts are still being opened. Second, the General Rules make an adult resident citizen of India eligible, and a guardian may open an account for a minor or a person of unsound mind — but both the guardian and the minor must be resident citizens.
2. How the interest rates are actually fixed
This is the single most misunderstood part of small savings, and it is why this guide does not lead with a rate table.
Rates are notified quarterly by the Ministry of Finance, Department of Economic Affairs, Budget Division, by office memorandum. The memorandum dated 30 September 2026 kept the rates for the third quarter of FY 2026-27 unchanged from the second quarter; the memorandum dated 30 March 2026 had done the same for the first quarter. A long run of "unchanged" quarters is common, but it is a decision taken each quarter, not a guarantee.
The rates India Post listed on its savings page as of 19 October 2026 were:
| Scheme | Rate listed by India Post | How it is compounded |
|---|---|---|
| Savings Account | 4.0% per annum | Simple interest |
| Recurring Deposit | 6.7% per annum | Quarterly compounded |
| Time Deposit | 6.9% to 7.5% | Varies with the period chosen |
| Monthly Income Scheme | 7.4% per annum | Payable monthly |
| Senior Citizens Savings Scheme | 8.2% per annum | Paid quarterly |
| National Savings Certificates (VIII) | 7.7% | Compounded yearly, payable at maturity |
| Kisan Vikas Patra | 7.5% | Compounded yearly; amount doubles in 115 months (9 years 7 months) |
| Public Provident Fund | 7.1% per annum | Compounded yearly |
| Sukanya Samriddhi Account | 8.2% per annum | Calculated and compounded yearly |
| Mahila Samman Savings Certificate | 7.5% | Compounded quarterly |
Treat every figure above as the rate for the current quarter only. Three different behaviours matter more than the numbers:
- Locked at purchase. NSC, KVP and Time Deposits lock in the rate prevailing when you deposit, for the whole term. A rate cut later does not touch an existing certificate.
- Floats every quarter. PPF and Sukanya Samriddhi apply whatever rate is notified for each quarter across the whole life of the account. You cannot lock a rate for 15 or 21 years.
- Fixed for the block. SCSS and MIS fix the rate for the five-year term, and a fresh rate applies on extension or renewal.
3. The deposit group: Savings Account, RD and Time Deposit
These three are the everyday products. The rules below are from the respective 2019 scheme notifications.
Post Office Savings Account. Opens with a minimum of Rs 500 and has no maximum. If the balance falls below the prescribed minimum at the close of the financial year, an account maintenance fee of Rs 50 is deducted. An account with no deposit or withdrawal for three complete financial years becomes a silent account and has to be revived before it can be used. A cheque book is issued with ten leaves free in a financial year; beyond that, Rs 2 per cheque leaf is charged.
National Savings Recurring Deposit. A five-year commitment of sixty monthly deposits. The minimum monthly deposit is Rs 100, in multiples of Rs 10, with no upper limit. The default rules are specific and worth knowing before you open one:
Up to four missed months
The maturity date simply shifts forward by the number of defaults, so you still make sixty deposits — just later.
More than four missed months
The account is treated as discontinued. It can be revived within two months of the fifth default; miss that window and no further deposits are accepted.
Cost of revival
A default fee of Re 1 for every Rs 100 of monthly deposit, per month of default, is payable along with the arrears.
Paying ahead earns a rebate
Depositing several months in advance attracts a prescribed rebate. Premature closure is allowed only after three years, and then interest is paid at the savings account rate, not the RD rate.
National Savings Time Deposit. Available for one, two, three or five years. The minimum is Rs 1,000 in multiples of Rs 100, with no maximum. The exit rules are graded, and they are harsher than most bank FDs:
- No withdrawal at all in the first six months.
- Closed between six and twelve months: interest at the savings account rate.
- Closed after one year: interest for the completed years at two percentage points below the rate for the shorter completed tenure.
- A five-year deposit closed after four years is paid at the three-year rate.
If you are weighing this against a bank deposit for short-term money, our comparison of FD, RD and liquid funds for an emergency fund covers the liquidity trade-off in detail.
4. The income group: MIS and SCSS
Both pay interest out rather than compounding it, which makes them pension-substitutes rather than growth products.
Monthly Income Scheme. One single deposit, five-year term, interest paid every month. Minimum Rs 1,000 in multiples of Rs 1,000. The ceiling was raised in the 2023-24 Budget to Rs 9 lakh for a single account and Rs 15 lakh for a joint account, and the amendment scheme giving effect to it was notified on 31 March 2023. Up to three adults may hold it jointly. No premature closure in the first year; closed between one and three years, 2% of the deposit is deducted; closed after three years, 1% is deducted.
Senior Citizens Savings Scheme. The eligibility rules are the fiddly part:
Who can open SCSS
- Anyone who has attained 60 years.
- A retired civilian employee aged 55 or above but below 60, provided the account is opened within one month of receiving retirement benefits.
- Retired defence personnel from 50 years, on the same one-month condition.
- Jointly only with a spouse, and the whole deposit is treated as belonging to the first holder.
Deposit and exit
- Minimum Rs 1,000, in multiples of Rs 1,000.
- Maximum Rs 30 lakh, raised in the 2023-24 Budget.
- Five-year term, extendable in three-year blocks.
- Closed before one year: all interest paid is recovered.
- Closed between one and two years: 1.5% of the deposit deducted. After two years: 1%.
- No deduction if closed after one year from the date of an extension.
That one-month window for the 55-to-60 and 50-plus defence categories is strict and is the most common reason an application is rejected. If you are planning around retirement, note it before the money arrives, not after.
5. The certificates: NSC and KVP
National Savings Certificates (VIII Issue). A five-year certificate. Minimum Rs 1,000 in multiples of Rs 100, no maximum. Interest is compounded yearly but paid only at maturity, which is why NSC is often described as a deposit that pays once. It may be held singly, as Joint A (payable to all holders) or Joint B (payable to any one holder), by up to three adults, and it can be pledged as security.
Kisan Vikas Patra. Minimum Rs 1,000 in multiples of Rs 100, no maximum. The defining feature is that the amount doubles on maturity — India Post currently shows this happening in 115 months, or nine years and seven months, at the prevailing rate. Because the doubling period is derived from the rate, it moves when the rate moves, so check the current maturity period before you buy.
KVP exits are the most restricted of the lot. Premature encashment is permitted only on the death of the holder or any of the holders in a joint certificate, on forfeiture by a pledgee who is a gazetted officer, or under a court order — and otherwise only after two and a half years from the date of purchase, as per the prescribed table.
6. The tax-free pair: PPF and Sukanya Samriddhi
Public Provident Fund. Minimum Rs 500 and maximum Rs 1,50,000 in a financial year, and that ceiling is for you and any minor account you operate taken together. A PPF account cannot be opened jointly. It runs 15 years and can be extended in five-year blocks by applying in Form-4 within one year of maturity. You may instead let it continue without further deposits, in which case one withdrawal a year is allowed.
The PPF rules that matter in practice:
- Default and revival. A year in which the minimum is not deposited puts the account in default. Revival costs a fee of Rs 50 per defaulted year plus the Rs 500 arrear for each such year.
- Loan. Available from the third year to the end of the sixth year, up to 25% of the balance at the end of the second year preceding the application.
- Partial withdrawal. Permitted after five financial years, limited to 50% of the balance at the end of the fourth preceding year or the preceding year, whichever is lower.
- Premature closure. Allowed only after five financial years, and only on three grounds — a life-threatening disease of the holder or dependants, higher education of the holder or a dependent child, or a change in the holder's residency status. Interest is then paid at 1% lower than the rate credited.
- On death. The account cannot be continued by the nominee or legal heir. It is closed and paid out.
- Protection. The credit balance is not liable to attachment under any order of a court in respect of the holder's debts.
Sukanya Samriddhi Account. Opened by a guardian for a girl child who has not attained ten years, with a minimum of Rs 250 and a maximum of Rs 1,50,000 in a financial year. Deposits run for 15 years but the account matures at 21 years from opening — a distinction that catches a lot of parents out. The full rule set, including the two-accounts-per-family limit and the twins exception, is in our Sukanya Samriddhi rules guide.
Where the tax deduction actually stands
Deposits in several of these schemes — PPF, NSC (VIII Issue) and the Sukanya Samriddhi Account among them — qualify for a deduction under section 123 read with Schedule XV of the Income-tax Act, 2025, which replaced the old section 80C from 1 April 2026. There is an overall annual ceiling on that deduction covering all qualifying items together.
Two cautions, and they are the ones that decide whether the deduction is worth anything to you:
- The deduction is regime-dependent. Total income computed under section 202, the simplified default regime, is computed without these deductions. If you are taxed under the default regime, a deposit in NSC or PPF buys you the interest and nothing more.
- Exempt interest is a separate question from a deduction on deposit. Only PPF and Sukanya Samriddhi pay interest that is exempt. Interest on NSC, KVP, SCSS, MIS, TD and RD is fully taxable in your hands, year by year, whether or not it has been paid out to you.
We are not reproducing the deduction ceiling or the slab rates here. Those are set by each Finance Act and should be read off the Income Tax Department's current deductions page. For how tax gets withheld on the taxable ones, see our guide to TDS on deposit interest and Form 15G / 15H.
7. Opening an account, and what the General Rules require
The mechanics are common across schemes because they come from the Government Savings Promotion General Rules, 2018.
Apply in Form 1
One application form opens any of the schemes, submitted at the accounts office — the post office or the authorised bank branch. Scheme-specific documents go with it, such as the birth certificate for a Sukanya Samriddhi account.
Complete KYC
Proof of identity and address, PAN, and a photograph. PAN matters beyond KYC: a deposit without PAN seeded will attract a higher rate of tax deduction on the interest.
Register a nomination in Form 10
Up to four nominees, with the percentage share for each, and whether each takes as a beneficiary with absolute ownership or as a trustee for the legal heirs. Nomination is made at the time of opening.
Use net banking for the rest
India Post Internet Banking lets you open RD and TD accounts and deposit into RD, PPF and Sukanya Samriddhi online. The ePassbook facility shows balance, a mini statement for SB, PPF and SSA, and transaction history.
Three General Rules provisions are worth committing to memory:
- Nomination can be changed. A fresh Form 10 with the passbook, filed any time before maturity, varies it. A nomination stands cancelled on the death of all nominees or on transfer of the account as security.
- Accounts are transferable. Form 5 transfers an account from one accounts office to another, so moving city does not force a closure.
- Accounts can be pledged. Where the scheme permits, Form 7 with the pledgee's acceptance letter transfers the account as security — to the President or a Governor in official capacity, the RBI, a scheduled bank or a co-operative bank or society, a public or private corporation or government company, a local authority, or a notified housing finance company.
If you become an NRI while the account is running
The General Rules are explicit and unforgiving here. If a depositor, a guardian or a minor depositor subsequently becomes a Non-Resident Indian while the account is in operation, the account may be continued only till maturity, the benefits are available only on a non-repatriation basis, the account cannot be extended or continued beyond maturity even where the scheme otherwise allows it, and no interest is payable after the maturity date.
So if you hold a PPF or a long time deposit and a move abroad is on the cards, work out the maturity date and plan the exit. Leaving the money sitting past maturity earns nothing.
8. Premature closure, scheme by scheme
This is the comparison that actually separates these schemes, far more than a few basis points of interest.
| Scheme | Earliest exit | What it costs you |
|---|---|---|
| Savings Account | Any time | Nothing; account maintenance fee if the balance falls below the minimum |
| Recurring Deposit | After 3 years | Interest paid at the savings account rate instead of the RD rate |
| Time Deposit | After 6 months | Savings account rate up to 1 year; thereafter 2 percentage points below the shorter-tenure rate |
| Monthly Income Scheme | After 1 year | 2% of deposit deducted before 3 years; 1% after 3 years |
| Senior Citizens Savings Scheme | Any time | All interest recovered within 1 year; 1.5% deducted from 1 to 2 years; 1% after 2 years |
| NSC (VIII Issue) | Restricted | Only on death, pledgee forfeiture or court order, outside the prescribed cases |
| Kisan Vikas Patra | After 2 years 6 months | Paid as per the prescribed table; earlier exit only on death, forfeiture or court order |
| Public Provident Fund | After 5 financial years | Only on 3 specified grounds, and interest is 1% lower than credited |
| Sukanya Samriddhi Account | After 5 years on compassionate grounds | Closure on death, extreme compassionate grounds, or intended marriage after 18 |
Read that table before you read any rate chart. A scheme paying slightly more that you cannot exit for five years is a worse fit for money you might need next year than a savings account paying 4%. If you are deciding where idle cash should sit, we have gone through this trade-off in what to do with idle money in the bank.
Frequently asked questions
How many post office savings schemes are there?
India Post lists nine core savings schemes — Savings Account, Recurring Deposit, Time Deposit, Monthly Income Scheme, Senior Citizens Savings Scheme, National Savings Certificates (VIII Issue), Kisan Vikas Patra, Public Provident Fund and the Sukanya Samriddhi Account — along with the Mahila Samman Savings Certificate, 2023. Each is notified separately under the Government Savings Promotion Act, 1873.
Who decides post office interest rates, and how often?
The Ministry of Finance, Department of Economic Affairs, Budget Division, notifies them by office memorandum every quarter. The memorandum dated 30 September 2026 kept the rates for the third quarter of FY 2026-27 unchanged from the previous quarter. Always check the rate notified for the current quarter before you deposit.
Can I open a post office PPF account jointly with my spouse?
No. The Public Provident Fund Scheme does not permit a joint account. You can each hold your own account, and you may also operate one for a minor child, but the Rs 1,50,000 annual ceiling applies to your own account and the minor account taken together.
Which post office schemes give tax-free interest?
Only the Public Provident Fund and the Sukanya Samriddhi Account pay interest that is exempt from tax. Interest on Recurring Deposits, Time Deposits, the Monthly Income Scheme, the Senior Citizens Savings Scheme, NSC and KVP is fully taxable in your hands. Savings account interest is taxable but attracts a separate small deduction.
Can a minor open a post office account in their own name?
Yes, where the scheme permits it. Under the General Rules, 2018, a minor who has attained the age of ten years may open and operate an account in accordance with the provisions of that savings scheme. For a younger child, a guardian opens and operates the account, and both guardian and minor must be resident citizens of India.
How many nominees can I register, and can I change them later?
Up to four nominees, registered in Form 10 at the time of opening, with the percentage share for each and whether each takes as an absolute beneficiary or as a trustee for the legal heirs. You can vary the nomination at any time before maturity by filing a fresh Form 10 along with the passbook.
Can I open post office accounts online?
Partly. India Post Internet Banking allows you to open Recurring Deposit and Time Deposit accounts and to deposit into RD, PPF and Sukanya Samriddhi accounts online, and the ePassbook shows balances and transaction history. You still need to visit a post office to open the base savings account and complete KYC.
What happens to my post office account if I move abroad?
If you become a Non-Resident Indian while the account is running, it may be continued only until maturity. The benefits are available on a non-repatriation basis, the account cannot be extended or continued beyond maturity even if the scheme otherwise allows it, and no interest is payable after the maturity date.
Sources: India Post — Savings schemes and current rates (last updated 19.10.2026); Government Savings Promotion General Rules, 2018 (Gazette of India); National Savings Institute — scheme rules and notifications; Department of Economic Affairs, Budget Division — quarterly small savings interest rate memoranda; Union Budget 2023-24 speech — SCSS and MIS deposit limits; Income Tax Department — deductions and exempt incomes.
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- Sukanya Samriddhi Yojana Rules: Age Limit, Deposits, Withdrawal
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- Emergency Fund: FD vs RD vs Liquid Funds
- Best Investment Plans for Salaried Employees
- What to Do With Idle Money Lying in Your Bank
- Savings Account vs Current Account
- Zero Balance Savings Accounts in India
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