Savings Schemes in India: Interest Rates, Tenure, Limits and Tax
Compare popular savings, retirement and tax-saving options in India, including government small-savings schemes, provident funds, NPS, APY, ELSS and bank fixed deposits. Government small-savings rates shown below are applicable for the quarter from 1 July 2026 to 30 September 2026.
Comparison of Major Savings and Investment Schemes
| Scheme | Tenure / lock-in | Interest / return | Minimum | Maximum / contribution limit | Broad tax treatment |
|---|---|---|---|---|---|
| Bank Fixed Deposit | Bank-specific; tax-saving FD has 5-year lock-in | Bank-specific; fixed at booking | Bank-specific | Generally no universal statutory ceiling | Interest is generally taxable. TDS rules/thresholds apply where conditions are met. |
| ELSS | 3-year statutory lock-in for each investment | Market-linked; no guaranteed rate | Fund-specific | No scheme-wide investment ceiling; tax deduction is subject to applicable law and regime | Equity-oriented mutual-fund tax rules apply. Long-term gains above the statutory exemption threshold are taxable at the applicable rate. |
| National Savings Certificate (NSC) | 5 years | 7.7% p.a., compounded annually | ₹1,000 | No maximum investment limit | Interest is taxable; eligible investment deductions depend on the applicable tax regime/law. |
| Post Office Monthly Income Account (MIS) | 5 years | 7.4% p.a., payable monthly | ₹1,000 | ₹9 lakh single account; ₹15 lakh joint account | Interest is generally taxable. |
| Senior Citizens Savings Scheme (SCSS) | 5 years; extension permitted under scheme rules | 8.2% p.a., payable quarterly | ₹1,000 | ₹30 lakh | Interest is taxable; TDS provisions may apply subject to threshold and declaration rules. |
| Employees' Provident Fund (EPF) | Retirement-oriented; withdrawal rules vary by service/eligibility | 8.25% recommended for FY 2025-26; final credit is subject to Government notification | Statutory contribution generally linked to eligible wages | Contribution governed by EPF law; employee may make additional VPF contribution | Exemption is subject to statutory conditions; interest attributable to employee contributions above the prescribed tax-free threshold can be taxable. |
| Voluntary Provident Fund (VPF) | Follows EPF withdrawal framework | Same declared EPF rate for the relevant year | Voluntary amount above statutory employee contribution | Subject to payroll/EPF rules; may extend up to the permitted portion of basic wages + DA | Tax exemption on interest is subject to the prescribed employee-contribution threshold. |
| Public Provident Fund (PPF) | 15 years; extendable in 5-year blocks | 7.1% p.a. | ₹500 per financial year | ₹1.5 lakh per financial year | Interest and qualifying withdrawals/maturity are exempt, subject to scheme and tax-law conditions; contribution deduction depends on the chosen tax regime. |
| Kisan Vikas Patra (KVP) | 115 months (9 years 7 months) | 7.5% p.a., compounded annually; investment doubles at maturity | ₹1,000 | No maximum limit | Interest/accretion is taxable under applicable law; no general tax deduction merely for investing. |
| Sukanya Samriddhi Account (SSA/SSY) | Matures 21 years from opening; deposits required for the prescribed contribution period | 8.2% p.a. | ₹250 per financial year | ₹1.5 lakh per financial year | Interest and eligible maturity/withdrawal amounts are exempt; contribution deduction depends on applicable tax regime/law. |
| Atal Pension Yojana (APY) | Contributions generally continue until age 60 | Government-guaranteed minimum pension of ₹1,000 to ₹5,000 per month, depending on chosen slab and contributions | Contribution depends on entry age, pension slab and frequency | Defined by contribution table; not an ordinary deposit ceiling | Tax treatment is subject to applicable pension and income-tax provisions. New applicants must satisfy APY eligibility rules. |
| National Pension System (NPS) | Retirement-oriented; continuation generally available up to age 75 | Market-linked; depends on asset allocation and fund performance | Depends on NPS account/model and contribution rules | No universal investment ceiling; tax deductions are subject to statutory limits | At normal exit, up to 60% lump sum can be withdrawn and at least 40% is generally used for annuity, subject to current PFRDA rules; pension/annuity receipts are taxable as applicable. |
| Pradhan Mantri Jan-Dhan Yojana (PMJDY) | No fixed tenure | Interest is earned at the bank's applicable savings-account rate | No minimum balance requirement for the basic account | No scheme-wide savings ceiling stated as a fixed investment limit | Interest is taxed under normal rules; PMJDY is primarily a financial-inclusion banking scheme, not a tax-exempt investment product. |
Current Government Small-Savings Rates
For 1 July 2026 to 30 September 2026, the Government kept small-savings rates unchanged from the preceding quarter. Key rates are SCSS 8.2%, Sukanya Samriddhi 8.2%, NSC 7.7%, KVP 7.5%, Monthly Income Account 7.4% and PPF 7.1%.
Tax Law Position from 1 April 2026
The Income-tax Act, 2025 came into force on 1 April 2026 and replaced the Income-tax Act, 1961 for Tax Year 2026-27 onwards. Accordingly, older references commonly used for deductions-such as section 80C-should be read with the corresponding provisions of the 2025 Act. Tax benefits can also differ depending on whether the taxpayer uses the default/new regime or opts for the alternative regime where permitted.
For bank and post-office interest, TDS is not the same as final tax liability. Interest may still be taxable even where no tax is deducted at source. Investors should check the current statutory threshold, their total income and eligibility for any declaration or deduction before relying on a TDS-free payment.
Important Eligibility Points
APY is open to eligible Indian citizens aged 18 to 40, but a person who is or has been an income-tax payer on the date of application cannot open a new APY account from 1 October 2022. Existing eligible subscribers who joined earlier are governed by the applicable APY rules.
The Deposit Scheme for Retiring Government Employees, 1989 is not included as a current investment option because the Government's own accounting manual records that the scheme was discontinued with effect from 9 July 2004.
Official References
- Department of Economic Affairs - Small Savings interest-rate revision, 30 June 2026
- India Post - Savings schemes and current product features
- Employees' Provident Fund Organisation (EPFO)
- Pension Fund Regulatory and Development Authority (PFRDA) - NPS and APY
- Department of Financial Services - PMJDY
- Income Tax Department - Income-tax Act, 2025 and tax guidance
Disclaimer: This page is for general information and comparison only and does not constitute investment, tax or legal advice. Interest rates, eligibility, contribution limits, withdrawal rules and tax treatment may change. Check the latest notification, scheme rules and official portal before investing or claiming a tax benefit.