Post Office savings schemes explained: MIS, RD, TD, SCSS, NSC, KVP
Written and reviewed by Omm · Last reviewed · General information, not investment advice
Post offices offer a set of savings schemes backed by the Government of India. They have different shapes: some pay you regularly, some grow your money and pay at the end, and some are meant for particular groups. Here is how each works. Current rates are in the rates table, updated every quarter.
Schemes that pay you regularly
- Monthly Income Scheme (MIS): you deposit a lump sum, up to ₹9 lakh in a single account or ₹15 lakh in a joint account, and receive interest every month for 5 years. The deposit comes back at maturity. The interest is simple, so it does not compound. MIS calculator.
- Senior Citizens’ Savings Scheme (SCSS): for people aged 60 and above (and some retirees from 55). You deposit up to ₹30 lakh and receive interest every quarter for 5 years, which can be extended in blocks of 3 years. SCSS calculator.
Schemes that grow and pay at the end
- National Savings Certificate (NSC): a 5-year certificate. Interest compounds every year and is paid with the deposit at maturity. There is no upper limit. NSC calculator.
- Kisan Vikas Patra (KVP): your money doubles in a fixed number of months, set by the rate at the time you buy. KVP calculator.
Schemes where you save or lock in
- Recurring Deposit (RD): you save a fixed amount every month for 5 years, and interest compounds every quarter. RD calculator.
- Time Deposit (TD): a fixed deposit for 1, 2, 3 or 5 years. The interest is calculated every quarter and paid yearly. The 5-year deposit has a tax-deduction benefit under the old regime. Time Deposit calculator.
Tax in brief
With the exception of PPF and Sukanya Samriddhi, the interest on these schemes is taxable at your slab rate. Some give a deduction on the amount you put in under Section 123 of the Income-tax Act, 2025 (formerly Section 80C), but only under the old regime, and the deduction limit of ₹1.5 lakh is shared across everything that qualifies. The calculators list the tax treatment for each scheme. Because the interest is taxed, the amount you actually keep depends on your tax slab, so compare schemes after tax, not before.
How to choose
Match the shape of the scheme to what you need. If you need income now, look at MIS or SCSS. If you want a lump sum on a date, look at NSC, KVP or a time deposit. If you want to build up slowly, an RD fits, and PPF or Sukanya Samriddhi suit long-term goals with tax-free growth. The comparison guide sets these side by side.
Scheme rules and rates are set by the Government and can change. Check the current rules with your post office before you invest.