Postal Investments include a number of saving schemes that provide high rate of interest as well as tax benefits and most importantly, carry the sovereign guarantee of Indian Government. All these schemes are tax exempt under Section 80c, i.e. tax exemption up to Rs. 1,50,000 is allowed. Some schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Time Deposit for a 5 Year Term and Senior Citizen Savings Scheme (SCSS).
| Postal Savings Scheme | Rate of Interest | Tax Deduction on Investment | Interest Taxable |
| Savings Account | 4% | No | Yes |
| Recurring Deposit | 7.2% QCI | No | Yes |
| Monthly Income Scheme | 7.6% SI | No | Yes |
| Time Deposit (1 year) | 6.9% QCI | No | Yes |
| Time Deposit (2 year) | 6.9% QCI | No | Yes |
| Time Deposit (3 year) | 6.9% QCI | No | Yes |
| Time Deposit (5 year)* | 7.7% QCI | Yes | Yes |
| Kisan Vikas Patra (KVP) | 7.6% YCI | No | Yes |
| Public Provident Fund (PPF) | 7.9% YCI | Yes | No |
| Sukanya Samriddhi Yojana | 8.4% YCI | Yes | No |
| National Savings Certificate | 7.9% YCI | Yes | No |
| Senior Citizens Savings Scheme | 8.6% SI | Yes | Yes |
Please note that interest rates are reviewed every quarter by the Government for these schemes. Investing in Post Office Time Deposit, Post Office Recurring Deposit, Post Office Monthly Income Scheme, National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) in a given quarter will lock-in the rate in that quarter for the entire tenure of the savings scheme. However for Public Provident Fund (PPF) and Sukanya Samriddhi Yojana, the revised rate will be applicable in the concerned quarter and so on. In other words, the applicable rate keeps changing.