Many major banks have cut FD rates in 2025, but Post Office small savings schemes are still offering impressive returns of 7% or more. Learn which 8 best government schemes offer safe investments, excellent returns, and income tax exemptions, which will provide exceptional strength to your financial future—this information will prove crucial.
Great Post Office Schemes
Today, when FD rates at most major public sector banks (PSUs) have languished between 6% and 7%, Post Office small savings schemes have emerged as a ray of hope for investors. These schemes are not only completely safe but also offer higher returns than FDs from many major banks. The Government of India revises the interest rates on these schemes every quarter.
8 Superhit Schemes Offering 7% or More Returns
Here are some of the best Post Office schemes that can meet your investment goals.
Senior Citizen Savings Scheme (SCSS)
This scheme offers an excellent return of 8.2%. It is an excellent option, especially for retired citizens, with quarterly interest directly credited to the account.
Sukanya Samriddhi Account (SSA)
It offers an interest rate of 8.2% for girl children. It is a high-return, completely tax-free scheme.
National Savings Certificate (NSC)
This scheme offers an interest rate of 7.7% per annum. Your ₹10,000 will grow to ₹14,490 over a period of 5 years, and an income tax exemption is also available.
Kisan Vikas Patra (KVP)
This scheme offers an interest rate of 7.5%. An investment of ₹10,000 doubles in approximately 9.5 years, or 115 months, and the entire amount is received in a lump sum upon maturity.
Mahila Samman Savings Certificate
This scheme, specifically for women, offers a quarterly compounded interest rate of 7.5%, turning an investment of ₹10,000 into ₹11,602 after 2 years.
Monthly Income Account (MIS)
This Post Office account offers an interest rate of 7.4% per annum. This means that an investment of ₹10,000 will earn you approximately ₹62 per month.
Public Provident Fund (PPF)
This is one of the most popular Post Office schemes, offering a compound interest rate of 7.1%. It is a long-term, tax-free savings scheme with a tenure of 15 years.
2-Year Time Deposit (TD)
This Post Office scheme offers a 7.0% interest rate, which is better than many bank FDs, and the interest is compounded quarterly.
Security and Tax Benefits
The most significant advantage of investing in Post Office small savings schemes is that they come with a government sovereign guarantee. This means your principal is completely safe, regardless of market conditions.
Tax Exemption and Compounding
Many schemes, such as the Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi Account, also offer tax benefits under Section 80C of the Income Tax Act when invested under the old tax regime.
Schemes like SCSS and SSA ensure high and secure returns. SSA’s 8.2% return and tax-free benefit make it a unique option for the future of girl children. SCSS provides an excellent source of monthly or quarterly income for retired individuals.