An update on current and latest interest rates of post office saving schemes (Oct-Dec 2023)
Because of rising inflation, many banks began raising their FD rates. As a result, the Interest Rates on a couple of the Post Office’s savings programs have increased slightly.
Today we are going to look at the Post Office Interest Rate from July to September 2025
Let’s get started!
I. Changes to Post Office Savings Schemes Effective From April 1st, 2016
II. July – September 2025 Post Office Interest Rates
III. Interest Rates at Post Offices from Jul 2024 to Jul 2025
IV. Why should you choose a Post Office Savings Scheme?
V. How can I start a Post Office Savings Scheme account?
VI. Documents required to open a “Post Office Savings Scheme” Account
VII. Post Office Savings Scheme Q&A
VIII. Conclusion
According to the schedule, the government declared the interest rate applicable to all Post Office Savings Schemes from July 1st to September 31st, 2025.
| S.NO | Quarter in which the interest rate would be effective | Notification | The interest rate will be determined by the FIMMDA month-end G-Sec. rate. |
| 1. | April-June | 15th March | Dec-Jan-Feb |
| 2. | July-September | 15th June | Mar-April-May |
| 3. | October-December | 15th September | Jun-Jul-Aug |
| 4. | January-March | 15th December | Sep-Oct-Nov |
What are the new interest rates on post office schemes? According to a statement from the Ministry of Finance’s Department of Economic Affairs, the interest rates shown below are in effect for the third quarter of this fiscal year.
Post Office Interest Rates Table – July-September 2025
| S.No | SCHEME | Existing Interest Rate (Apr 25- Jun 25) | Revised Interest Rate(Jul 25 – Sept 25) | Compounding Frequency | Effective Return | Minimum Deposit | Maximum Deposit | Tenure |
| 1. | Sukanya samridi Scheme | 8.20% | 8.20% | yearly | 8.20% | ₹ 1,000 | ₹ 1.5 lakh Per Year | 21yrs |
| 2. | Kisan Vikas Patra(KVP) | 7.50% | 7.50% | yearly | 7.50% | ₹ 1,000 | No Limit | 123 Months |
| 3. | Senior Citizen Savings Scheme (scss) | 8.20% | 8.20% | NA | 8.20% | ₹ 1,000 | ₹ 30 Lakh | 5 yrs |
| 4. | Public Provident Fund (PPF) | 7.10% | 7.10% | yearly | 7.10% | ₹ 500 Per year | ₹ 1.5 Lakhs Per Year | 15yrs |
| 5. | Post Office Monthly Income Scheme(MIS) | 7.40% | 7.40% | NA | 7.40% | ₹ 1,500 | ₹ 9 lakh(Single) ₹ 15 Lakh (jointly) | 5yrs |
| 6. | National Savings Certificate (NSC)- 5yrs | 7.70% | 7.70% | Yearly | 7.70% | ₹ 100 | No Limit | 5yrs |
| 7. | Recurring Deposit – 5yrs | 6.70% | 6.70% | Qly | 6.87% | ₹ 10 a Month | No Limit | 5yrs |
| 8. | Term Deposit 1yr | 6.90% | 6.90% | Qly | 7.08% | ₹ 200 | No Limit | 1yrs |
| 9. | Term Deposit 2yr | 7.00% | 7.00% | Qly | 7.18% | ₹ 200 | No Limit | 2yrs |
| 10. | Term Deposit 3yr | 7.10% | 7.10% | Qly | 7.29% | ₹ 200 | No Limit | 3yrs |
| 11. | Term Deposit 5yr | 7.50% | 7.50% | Qly | 7.71% | ₹ 200 | No Limit | 5yrs |
| 12. | Savings Account | 4.00% | 4.00% | NA | 4.00% | ₹ 20 For Opening | No Limit | NA |
Can you notice a similarity in the above Post Office Interest Rate July to September 2025 illustration? The Interest Rates of the Public Provident Fund(PPF) and Savings Account are unchanged!
Post Office Interest Rates Table July 2024 to July 2025
| S.No | Scheme | July to September 2024 | October to December 2024 | January to March 2025 | April to June 2025 | July to September 2025 |
| 1. | Sukanya samridi Scheme | 8.20% | 8.20% | 8.20% | 8.20% | 8.20% |
| 2. | Kisan Vikas Patra(KVP) | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| 3. | Senior Citizen Savings Scheme (scss) | 8.20% | 8.20% | 8.20% | 8.20% | 8.20% |
| 4. | Public Provident Fund (PPF) | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% |
| 5. | Post Office Monthly Income Scheme(MIS) | 7.40% | 7.40% | 7.40% | 7.40% | 7.40% |
| 6. | National Savings Certificate(NSC)- | 7.70% | 7.70% | 7.70% | 7.70% | 7.70% |
| 7. | Recurring Deposit | 6.70% | 6.70% | 6.70% | 6.70% | 6.70% |
| 8. | Term Deposit 1yr | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% |
| 9. | Term Deposit 2yr | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| 10. | Term Deposit 3yr | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% |
| 11. | Term Deposit 5yr | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| 12. | Savings Account | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% |
Because of their simplicity and accessibility, Post Office accounts are a popular savings and investment choice.
They are backed by the Government of India, which instills faith in the general public.
Due to limited documentation and proper procedures in the Post Office, these saving schemes are simple to choose and best suited for both rural and urban investors.
The Post-Office investment options are great for retirement and pension planning because the investments are long-term in nature, with a PPF account investment period of up to 15 years.
The Post Office Saving Scheme offers a high rate of return as well as Tax Advantages and Capital Protection.
Post Office Saving Scheme Interest Rates are risk-free, ranging from 4% to 8% and the majority of these programs qualify for Section 80C tax breaks on the deposit amount.
Few programs, such as the PPF and the Sukanya Samriddhi Yojana, exempt the interest earned from taxation.
This is one of the most famous Post Office Savings and Investment Schemes.
The Government of India’s Public Provident Fund (PPF) Scheme is a Tax-Free Savings Account Scheme.
The PPF is a safe investment because it is government-backed and cannot be connected to any debt or liability.
High yields, Tax Exemption, and capital security are all advantages of a PPF account.
Please Click Here to read more about the PPF scheme.
The Post Office savings account offers a Fixed Rate of Return on deposits. As a result, it is appropriate for risk-averse investors seeking a fixed investment return.
The Post Office Savings Account has a ₹500 minimum deposit requirement and no maximum deposit limit.
Interest earned in the account up to ₹10,000 is deductible from income in a fiscal year under section 80 TTA of the Income Tax Act.
The 5-year Post Office Recurring Deposit (PORD) system allows you to save every month for 5 years. (The current Interest Rate of Post Office RD is 5.80% as mentioned in the earlier “Post Office Interest Rates Table – July – September 2025”)
Deposits under Post Office Time Deposit schemes can be made for one, two, three, or five years, and only one deposit can be made in one account.
Account holders can extend the period of a Time Deposit account when it matures.
The minimum deposit in the ‘Time Deposit Account’ is 1000/-, and subsequent deposits are in multiples of 100.
Income is taxable in the hands of investors at the individual tax bracket rates, but no TDS is levied.
The RD account is subject to a three-month minimum lock-in period. You cannot withdraw your Post Office RD investments early.
The Minimum deposit in the ‘Monthly Income Scheme’ is 1000/- and multiples thereof. The Maximum single account balance is ₹9 lakhs and the joint account balance is ₹15 lakhs.
A resident Indian can only open an MIS account. Non-resident Indians are not covered by this scheme.
Anyone above the age of 18 is eligible to open an account. You can open an account on behalf of a minor aged 10 or older.
This Senior Citizen Savings Scheme is a Government-Backed Retirement Plan that allows you to make a single lump sum deposit. The deposit can range between a minimum of ₹1,000 and with maximum deposit of ₹30 lacs.
The account can be opened either separately or jointly with a spouse.
Who is eligible for this scheme? Individuals above the age of 60 can open this account.
NSC, or The National Savings Certificate, is a government-backed fixed-income investment scheme. It is ideal for low and middle-income investors who want to save taxes while generating rewards. This is a safe and risk-free product.
What exactly is the Sukanya Samriddhi program?
The Government of India created the Sukanya Samriddhi Scheme to ensure equal share for girl children while also saving their financial future.
The Sukanya Samriddhi scheme is only for girl children and is open to girl children aged 0 to 10 years.
Click Here to Know everything about the Sukanya Samriddhi Yojana Scheme.
Kishan Vikas Patra was introduced in 1988 as a small savings certificate initiative. Its primary goal was to urge people to practice long-term financial discipline.
At the time of its inception, this scheme was aimed at farmers, hence the name. However, anyone who meets the eligibility criteria can now invest in it.
The Kisan Vikas Patra Post Office scheme has a fixed tenure of 113 months and provides individuals with guaranteed returns.
Click Here to find the complete details of the Kisan Vikas Patra Scheme including Post Office Interest Rates.
You can open a “Recurring Deposit” or “Term Deposit” Account Through Mobile.
From the Google Play Store, download and sign in to the India Post Mobile Banking app.
a.) After successfully logging in, go to the home screen and choose the ‘Requests’ option to create a POFD account.
b.) To open the account, enter the details such as the deposit amount, duration, the account from which you wish to deposit the money, nominee, and others.
Go to the Post Office’s official website and download and print the appropriate application form. Attach all required paperwork. Go to your local Post Office and present the papers to the appropriate officials.
It is the Post Office Monthly Income Scheme. The Minimum amount of investment is ₹1000/- and multiples thereof. The maximum single account balance is ₹9 lakhs and joint account balance is ₹15 lakhs. Interest earned is subject to tax but not TDS
ii.) Is Post Office 5-year FD tax-free?
Only the deposit you made in the 5-year fixed deposit account is eligible for income tax deduction under Section 80C of the Income Tax Act of India, 1961. If the interest you earn on your FD account exceeds ₹40,000 per fiscal year for regular customers, the Post Office may deduct tax at the source.
iii.) Which is superior, the Post Office FD or the NSC?
National Savings Certificates (NSC) have a longer investment period but provide a range of benefits, including tax breaks. Post Office Fixed Deposit Interest Rates are substantially greater than Post Office savings accounts Interest Rates.
iv.) Is it possible for me to have two Post Office accounts?
Yes, you can create two accounts. A ‘single Account’ is permitted to be opened by only an individual once, while the other will be a joint account.
The single account has additional benefits, such as the ability to integrate with a postal wallet and conduct NEFT and RTGS transactions.
This is not possible in the case of a joint account.
v.) Is Post Office FD 100% safe?
Post Office Deposits and Fixed Deposits are both considered safe investment options. Before deciding between Post Office Deposits and FDs, investors should examine their investment objectives, risk tolerance, and investment horizon.”
We hope that this article provided you with enough clarity about the Post Office Interest Rate July to September 2025 and about various savings schemes in general. Sharing this would benefit people who are in need of this information.
Post office schemes are endorsed by the Government. So, it is a reliable form of investment without much risk. But, when you want to invest in other forms of investment options like Mutual Funds, share market, etc… It is wise to take the help of a professional financial planner.
Be safe and invest wisely!
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