Post Office Schemes 2026: NSC, SCSS, MIS Rates

Looking for the best return from post office schemes right now? The government has kept small savings rates unchanged for the October-December 2026 quarter, so SCSS still pays 8.2%, NSC 7.7%, KVP 7.5% and the Monthly Income Scheme (MIS) 7.4%. This guide compares all four on rate, limit, payout and tax so you can pick the one that fits your goal.

Post Office Scheme Interest Rates: October-December 2026

Other Time Deposit rates are 6.9% for 1 year, 7.0% for 2 years and 7.1% for 3 years. The Post Office Savings Account pays 4%. Time Deposit interest is calculated quarterly and paid annually, which makes the effective yield on the 5-year Time Deposit about 7.71%.

SCSS Interest Rate: Best Pick for Retirees

The Senior Citizen Savings Scheme offers the highest rate in the table at 8.2%, and it pays interest every quarter. That makes it a steady income source after retirement.

• Who can invest: Individuals aged 60 and above. Retired civilian employees aged 55 to 60 (on superannuation or VRS) and retired defence personnel aged 50 and above can also open an account, subject to the scheme conditions.
• Limit: Up to ₹30 lakh across all your SCSS accounts (raised from ₹15 lakh in Budget 2023).
• Tenure: 5 years, which can be extended by 3 years.
• Tax: Your deposit qualifies for the 80C deduction (old regime, up to ₹1.5 lakh), but the interest is taxable.

Example: On a ₹30 lakh deposit at 8.2%, you earn ₹2,46,000 a year, which is ₹61,500 every quarter or about ₹20,500 a month on average.

NSC Interest Rate: Simple 5-Year Growth

The National Savings Certificate pays 7.7% compounded annually, and you receive everything at maturity. There is no upper limit, which makes NSC useful if you have already used up other limits.

Example: ₹1,00,000 invested at 7.7% for 5 years grows to about ₹1,44,903.

NSC has a tax feature that many people miss. The interest is taxable every year as it builds up, but the interest for the first four years is treated as reinvested in the certificate. That reinvested amount qualifies for a fresh 80C deduction in the old regime, within the overall ₹1.5 lakh limit. Only the fifth-year interest is taxed without an offsetting deduction.

Post Office MIS: Monthly Income

The Monthly Income Scheme pays 7.4% as monthly interest for a 5-year term. It suits people who want a regular payout rather than growth.

• Limit: ₹9 lakh in a single account, ₹15 lakh in a joint account.
• Tax: No 80C benefit. Interest is taxable, although no TDS is deducted on it.

Example:

Kisan Vikas Patra: Money Doubles in 115 Months

KVP offers 7.5% and matures in 115 months, which is 9 years and 7 months. At that point, ₹1,00,000 becomes ₹2,00,000. There is no upper limit, but KVP does not give an 80C deduction.

Minimum Deposit and Early Withdrawal Rules

These schemes lock your money, so check the exit rules before you invest.

For PPF the minimum is ₹500 a year, and for SSY it is ₹250 a year.

Which Scheme Gives the Best Return After Tax?

Headline rates ignore tax. The table below shows the approximate return for someone in the 30% tax slab (31.2% with cess), ignoring surcharge and any 80C benefit.

For high-bracket taxpayers, PPF's tax-free interest can beat the higher headline rates of the taxable schemes. If you are in a lower slab, the gap narrows. Our New vs Old Tax Regime Break-Even Guide can help you work out which regime suits you.

How to Choose the Right Post Office Scheme

• You are 60 or older and want regular income: SCSS, up to the ₹30 lakh limit.
• You want a lump sum in 5 years: NSC, or the 5-year Time Deposit if you also want the 80C deduction.
• You want a fixed monthly payout: MIS, within the ₹9 lakh or ₹15 lakh limit.
• You do not need money for about 9 years: KVP.
• You want tax-free interest: PPF, or Sukanya Samriddhi Yojana if you have a daughter under 10.

Post office schemes are backed by the Government of India, while bank deposits are insured up to ₹5 lakh per depositor per bank by DICGC. Post office rates are also fixed by the government every quarter, whereas bank FD rates move with the market. Before locking money for five years, compare with current bank offers using our FD Maturity Calculator Guide. If you need regular withdrawals from a market-linked option, see SWP vs FD.

Keep an emergency fund outside these locked schemes, since early withdrawal from most of them is restricted or penalised.

You can run your own numbers on the iCalcDesk calculators.

Frequently Asked Questions (FAQ)

What are the post office scheme interest rates for October-December 2026?

Rates are unchanged for 1 October to 31 December 2026: SCSS 8.2%, NSC 7.7%, KVP 7.5% (matures in 115 months), MIS 7.4%, 5-year Time Deposit 7.5%, 5-year RD 6.7%, PPF 7.1% and SSY 8.2%. The government reviews these rates every quarter.

Which is better: SCSS, NSC or Post Office MIS?

SCSS pays the highest rate (8.2%) but is only for investors aged 60 and above. NSC suits long-term growth with a 5-year lock-in, while MIS suits those who need monthly income. Interest on all three is taxable, and only SCSS and NSC qualify for the 80C deduction (old regime).

What is the maximum investment in SCSS and Post Office MIS?

SCSS allows up to Rs. 30 lakh per person across all accounts. Post Office MIS allows Rs. 9 lakh in a single account and Rs. 15 lakh in a joint account. NSC and KVP have no upper limit.

Is the interest on NSC, SCSS and MIS taxable?

Yes. Interest from these schemes is added to your income and taxed at your slab rate. On SCSS, TDS applies only when interest crosses Rs. 1 lakh in a financial year, and eligible senior citizens can submit Form 15H if their income is below the taxable limit.

Can the interest rate change after I invest in a post office scheme?

For NSC, KVP, MIS and SCSS, the rate on the date you invest is generally locked for that deposit's term. PPF and SSY are different: their rates are revised every quarter and apply to your existing balance as well.

Related Guides & Calculators

• PPF Calculator Guide: tax-free interest and 15-year compounding.
• Sukanya Samriddhi Yojana Guide: 8.2% for a girl child's savings.
• VPF vs EPF vs PPF: compare provident fund options.
• FD Maturity Calculator Guide: how FD interest compounds.
• SWP vs FD: monthly income compared.
• RBI Repo Rate October 2026: what the rate hike means for FDs and loans.
• Emergency Fund Guide: how much to keep outside locked schemes.
• iCalcDesk Financial Calculators

Sources & Official References

Disclaimer: This article is prepared for educational and informational purposes only and does not constitute financial, investment, tax or legal advice. Interest rates, limits and tax rules can change. Verify current provisions with India Post or the official government portals before making decisions.