Investment: Post Office schemes that offer higher returns than fixed deposits! Here's the complete list..

In 2025, many banks have reduced interest rates on their fixed deposit (FD) schemes. As a result, new FD investors are receiving lower interest rates. Those planning to invest in FDs in the future will also receive lower interest rates. Despite the decline in FD interest rates, many post office small savings schemes are still offering higher interest rates than FDs offered by many major banks. FD rates at most major banks, including public sector banks (PSUs), are between 6% and 7%. On the other hand, several small post office savings schemes offer interest rates exceeding 7%. Many of these schemes also offer income tax exemptions if invested under the old tax system. Let us take a closer look at some of the best post office schemes.

Post Office Small Savings Schemes
Post office small savings schemes are offering better returns than FDs offered by many major banks. The government changes the interest rates on these schemes every quarter. Many post office schemes offer interest rates of 7% or more.

2-Year Time Deposit Scheme - The Post Office's time deposit scheme offers excellent interest rates. An investment of ₹10,000 for 2 years yields approximately ₹719 at a rate of 7%, and the interest rate is compounded every three months.

Senior Citizen Savings Scheme - The Senior Citizen Savings Scheme is offered for senior citizens. This scheme offers an interest rate of 8.2%. You receive a direct quarterly deposit of ₹205 on ₹10,000. This could be a perfect retirement plan.

Monthly Income Account - The Post Office offers an annual interest rate of 7.4% per annum. An investment of ₹10,000 earns ₹62 per month.

National Savings Certificate (NSC) - This scheme offers an annual interest rate of 7.7%. Your ₹10,000 will convert into ₹14,490 after 5 years. The entire amount will be received in a lump sum upon maturity.

Public Provident Fund (PPF) - This is one of the most popular post office schemes. It offers a compounded interest rate of 7.1% per annum. It is a tax-free long-term savings scheme. It lasts for 15 years, but withdrawals are available at any time.

Kisan Vikas Patra (KVP) - This post office scheme is also quite popular. It offers an interest rate of 7.5%. ₹10,000 invested in this scheme will double in approximately 9.5 years. The entire amount is received upon maturity.

Mahila Samman Savings Certificate - This scheme is specifically for women. It offers a quarterly interest rate of 7.5%. ₹10,000 invested in this scheme will grow to ₹11,602 after 2 years. This is a special scheme for women.

Sukanya Samriddhi Account - This scheme offers an annual interest rate of 8.2%. The account, held in the girl's name, lasts until she's 21. This is a tax-free scheme with the highest returns.

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