The Post Office offers a variety of investment options that are commonly referred to as “Small or National savings schemes”. These schemes are managed by the National Savings Institute, which comes under the Ministry of Finance.
All the fixed deposit schemes in the Post Office come with a sovereign guarantee. Your 100% deposit is fully secure and will be returned to you in case of default. This is a higher limit in comparison to banks, where only ₹5 lakhs are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Additionally, some of the Post Office FD plans offer tax benefits under Section 80C of the Income Tax Act, and interest received is not subject to TDS deductions (although it is taxable).
Want to know more? In this article, let’s check out the various Post Office FD schemes you can consider in 2025.
Post Office FD Scheme – Time Deposits
The Post Office offers National Savings Time Deposit (TD), which is a fixed deposit scheme. In it, you invest a lump sum for a fixed period and earn interest at a predetermined rate. The FD rates are reviewed every quarter by the Government of India (GoI).
As of August 14, 2025, you can earn a maximum of 7.50% p.a. from a time deposit of 5 years. Let’s check out the latest interest rates below:
| Tenure | Interest Rate |
| 1 year | 6.90% |
| 2 years | 7.00% |
| 3 years | 7.10% |
| 5 years | 7.50% |
Note: The above interest rates are valid as of August 14, 2025. Interest rates are subject to change. Please refer to the latest interest rates before investing.
Key Features of National Savings Time Deposits
The minimum deposit is ₹1,000, and there is no maximum limit. You can even open multiple TD accounts. Additionally:
- The investment under a 5-year TD qualifies for the benefit of section 80C of the Income Tax Act, 1961. 100% of the amount invested in this scheme can be claimed as a deduction up to ₹1.5 lakhs.
- Interest is compounded quarterly and payable annually.
- No withdrawal is allowed before 6 months.
- For closures between 6 months and 1 year, only savings account interest is paid.
- After 1 year, the interest is reduced by 2% from the applicable TD rate.
- A 5-year TD can be closed only after 4 years, and you earn only savings account interest. Excess interest already paid is deducted.
Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS) is another savings option that gives you a fixed monthly income from a one-time lump sum deposit. Any Indian resident can open an account, either individually or jointly, and the minimum deposit is ₹1,000.
| Interest Rate | Interest Frequency | Tenure |
| 7.40% p.a. | Monthly | 5 years |
Note: The above interest rate is valid as of August 14, 2025. Interest rates are subject to change. Please refer to the latest interest rates before investing.
Key features of POMIS
- In a single account, you can invest up to ₹9 lakh.
- Whereas, in a joint account, the limit is ₹15 lakh in total, and all holders have equal ownership.
- You can open more than one account, but the combined total across all your accounts cannot exceed ₹9 lakh (for a single holder) and ₹15 lakh (for joint holders).
- You can close the account only after 1 year.
- If you withdraw:
- Between 1 to 3 years, there is a 2% penalty on the deposit amount.
- After 3 years but before maturity, the penalty is 1%.
- You can move your account from one post office to another anywhere in India.
Post Office Scheme For Senior Citizens
The Senior Citizen’s Savings Scheme (SCSS) is a government-backed deposit scheme offered via post offices. The minimum entry age in this scheme is 60 years for regular applicants. However, retired defence employees can apply from age 50, and individuals who have taken voluntary retirement after age 55 can apply within one month of receiving their retirement benefits.
| Interest Rate | Interest Frequency | Tenure |
| 8.20% p.a. | Quarterly | 5 years |
Note: The above interest rate is valid as of August 14, 2025. Interest rates are subject to change. Please refer to the latest interest rates before investing.
Key features of SCSS
- Investment limits:
- Maximum: ₹30 lakh per person (combined across all SCSS accounts).
- Minimum: ₹1,000.
- Amount must be in multiples of ₹1,000.
- Multiple accounts are allowed, including joint accounts with a spouse.
- Premature withdrawal is allowed anytime after opening the account, subject to these conditions:
- Before 1 year: You won’t get any interest. If any interest was already paid, it will be recovered from the deposit before returning the balance.
- After 1 year but before 2 years: A penalty of 1.5% of your deposit will be deducted.
- After 2 years: A penalty of 1% of your deposit will be deducted.
- An SCSS FD is eligible for deduction under Section 80C.
National Savings Certificate (VIII Issue) (NSC)
The National Savings Certificate (NSC) is a Post Office FD plan that offers cumulative returns. The interest is not paid out during the investment period. Instead, it is added to your principal and paid at maturity along with the original deposit.
| Interest Rate | Interest Frequency | Tenure |
| 7.70% p.a. | Interest + Principal paid only at maturity | 5 years |
Note: The above interest rate is valid as of August 14, 2025. Interest rates are subject to change. Please refer to the latest interest rates before investing.
Key features of NSC
- The minimum amount you can invest is ₹1,000.
- There is no maximum limit.
- Individuals in single or joint holding (up to 3 adults) can invest in NSC.
- The amount invested in this Post Office FD plan is eligible for deduction under Section 80C.
- The NSC can be pledged as security to get a loan from banks.
Mahila Samman Savings Certificate, 2023
The Mahila Samman Savings Certificate, 2023, is a fixed deposit scheme in the Post Office offered specifically to women. Only a woman can open an account in her own name, or a guardian can open it on behalf of a minor girl.
| Interest Rate | Interest Frequency | Tenure |
| 7.50% p.a. | Interest + Principal paid only at maturity | 2 years |
Note: The above interest rate is valid as of August 14, 2025. Interest rates are subject to change. Please refer to the latest interest rates before investing.
Key features of Mahila Samman Savings Certificate, 2023
- Investment limits:
- Minimum deposit: ₹1,000 (in multiples of ₹100).
- Maximum deposit: ₹2 lakh in one account or across all accounts held by the same person.
- A gap of at least 3 months is required between opening one account and another.
- After 1 year, you can withdraw up to 40% of the balance.
- Premature closure is allowed at any time after 6 months without giving a reason. In such cases, the interest rate will be 2% lower than the scheme’s regular rate (for example, 5.5%).
Invest in FDs From Your Home Via the GoldenPi Platform!
Post Office FD schemes are managed by the Government of India, and their interest rates are reviewed every quarter. Once you invest, your rate is locked in for the entire duration.
As of August 14, 2025, you can get the following highest interest rates from the Post Office FD plans:
- 7.50% p.a. for a 5-year Time Deposit
- 7.40% p.a. for POMIS
- 8.20% p.a. for SCSS
- 7.70% p.a. for NSC
- 7.50% p.a. for the Mahila Samman Savings Certificate
These schemes carry sovereign guarantee and are government-backed. If you are exploring more choices, you can also book FDs in popular NBFCs and banks through the GoldenPi platform. The process is 100% online and can be completed within minutes! Check out the various FD options from here.
Post Office FD Scheme FAQs
1. Which Post Office FD scheme offers the highest interest rate in 2025?
For senior citizens, the Senior Citizens’ Savings Scheme (SCSS) offers the highest rate at 8.20% p.a. On the other hand, for general investors, the National Savings Certificate (NSC) gives the highest rate at 7.70% p.a.
These rates are valid as of August 14, 2025. Interest rates are subject to change. Please refer to the latest interest rates before investing
2. What is the maximum deposit allowed in the Mahila Samman Savings Certificate?
The maximum you can deposit is ₹2 lakh in one account or across all accounts held by the same person. Furthermore, a gap of at least three months is required between opening one account and another under this Post Office FD scheme.
3. Can I take NSC interest monthly?
No! NSC interest is not paid monthly, quarterly, or annually. It is compounded half-yearly and added to your principal. The total amount (principal + interest) is paid in full only at the end of 5 years.
4. Can SCSS be withdrawn before maturity?
Yes! You can close SCSS before the due date, but the following penalties apply:
- If you withdraw before 1 year, no interest is given. Any paid interest is recovered from the principal amount.
- If you break your FD between 1 and 2 years, 1.5% of the deposit is deducted.
- If you withdraw after 2 years, 1% is deducted.
5. Is the Post Office Monthly Income Scheme (POMIS) interest compounded?
No! POMIS pays a fixed interest monthly directly to your account. The interest is not compounded or reinvested.
