Good news for investors, seniors and families relying on safe returns! The government has kept interest rates on all Post Office small savings schemes unchanged for the January-March 2026 quarter. This means Post Office Monthly Income Scheme (MIS) continues at 7.4% for steady monthly payouts, while Senior Citizen Savings Scheme (SCSS) stays at attractive 8.2% with quarterly income – a big boost amid falling bank FD rates.
Rates announced on December 31, 2025 – no cuts despite expectations!
Know Complete Details of Post Office Schemes Revision January 2026
Finance Ministry decided to maintain status quo for seventh straight quarter:
- Rates reviewed quarterly based on G-Sec yields + spread.
- Despite repo cuts in 2025 and lower yields, government protects savers’ income.
- All schemes unchanged: PPF (7.1%), NSC (7.7%), KVP (7.5%), SSY (8.2%), Time Deposits (6.9%-7.5%).
Focus schemes:
- MIS: 7.4% p.a. (monthly interest)
- SCSS: 8.2% p.a. (quarterly interest, for 60+ age)
Monthly Income Boost from MIS – Calculate Your Payouts
Post Office MIS ideal for regular income:
- Investment limit: ₹9 lakh (single), ₹15 lakh (joint)
- Tenure: 5 years
- Monthly interest (example at 7.4%):
| Investment Amount | Monthly Income (approx) |
|---|---|
| ₹4.5 lakh | ₹2,775 |
| ₹9 lakh | ₹5,550 |
| ₹15 lakh (joint) | ₹9,250 |
Interest credited directly to savings account. Safe, government-backed.SCSS Quarterly Income – Best for Seniors
Senior Citizen Savings Scheme remains top choice:
- Age: 60+ (55+ for VRS/retired)
- Limit: ₹30 lakh
- Tenure: 5 years (extendable by 3)
- Quarterly payout at 8.2%:
| Investment | Quarterly Income (approx) | Annual Income |
|---|---|---|
| ₹15 lakh | ₹30,750 | ₹1.23 lakh |
| ₹30 lakh | ₹61,500 | ₹2.46 lakh |
TDS if interest > ₹50,000/year (seniors).
How It Affects You – Big Benefits in 2026
- Seniors & Retirees: Locked high rates – better than bank FDs (many below 7%).
- Middle Class: MIS for monthly expenses; SCSS for quarterly.
- Tax Angle: Interest taxable (slab rate); SCSS qualifies for 80C up to ₹1.5 lakh? No, SCSS investment not 80C eligible, but safe.
- Tip: Open/invest before March 31 to lock rates; transfer mature amounts.
- Edge Cases: Joint MIS with spouse; SCSS multiple accounts allowed up to limit.
Unchanged rates provide stability amid economic changes – supports household savings.
Planning MIS or SCSS investment in 2026? How much monthly income do you need? Comment below and share your views!
Stay updated with us for all latest post office schemes, interest rates and government updates in 2026.
Sources: Ministry of Finance Notification (December 31, 2025), India Post Website, Economic Times, Business Standard, RBI Guidelines.