Government schemes
Post Office Schemes
Every product India Post offers — 9 small savings schemes (incl. Post Office RD) + 6 Postal Life Insurance (PLI) + 6 Rural PLI (RPLI) plans. Sovereign-backed, government-notified rates. Updated for Q1 FY 2026-27.
PPF Calculator
7.1% tax-free EEE growth
Sukanya Samriddhi
8.2% tax-free for girl child
NSC Calculator
7.7% govt 5-year + 80C
KVP Calculator
Money-doubling certificate
POMIS Calculator
7.4% monthly income, 5-year
Post Office TD
6.9–7.5% 1/2/3/5-year FD
Mahila Samman Certificate
7.5% women-only 2-year scheme
Post Office RD
6.7% 5-year recurring deposit, sovereign-backed
PLI Calculator
Postal Life Insurance — all 14 PLI + RPLI plans
SCSS Calculator
8.2% senior citizen scheme
India Post insurance
Postal Life Insurance (PLI)
India's oldest life insurer (1884) — operated by India Post, fully government-backed, declares some of the highest bonus rates in the industry. Six plan families cover whole life, endowment, money-back, joint life and child cover. Premiums qualify for Section 80C; maturity / death benefit is tax-free under Section 10(10D).
Who can buy PLI?
Originally restricted to government employees (1884–1980s), PLI eligibility has expanded steadily. As of 2026, the eligible categories are:
- • Central & State Government employees
- • Defence & Paramilitary forces
- • PSUs, nationalised banks, LIC, GIC
- • Local bodies, autonomous bodies, co-operatives
- • Educational institutions (recognised)
- • Listed company employees (NSE / BSE)
- • Professionals — doctors, engineers, CAs, CS, MBAs, lawyers, architects
- • Credit-rated company employees, NRIs (eligibility-checked)
Sum assured range across all PLI policies combined: ₹20,000 to ₹50 lakh. Entry age 19+. Maximum age varies by plan.
Suraksha — Whole Life Assurance
WLAPremiums payable till age 55 / 58 / 60 (chosen). Sum assured + accrued bonus paid on death of insured, or earlier on attaining age 80. Convertible to Endowment between 5 years of policy and age 55.
Santosh — Endowment Assurance
EAMost popular PLI plan. Maturity benefit (SA + accrued bonus) paid at chosen maturity age; full benefit also paid on death during term. Term flexible — match it to retirement / child education / home corpus.
Suvidha — Convertible Whole Life
CWLAStarts as Whole Life. Between policy years 5 and 6, you can convert it to Endowment Assurance — locking in maturity benefit. If not converted, it continues as WLA. Useful when you're unsure about long-term horizon.
Sumangal — Anticipated Endowment
AEAMoney-back at intervals during the policy term. 15-year term: 20% SA at year 6 & 9, 20% at 12, 40% + bonus at 15. 20-year term: 20% at 8, 12 & 16, 40% + bonus at 20. Death claim = full SA + bonus regardless of survival payouts received.
Yugal Suraksha — Joint Life Endowment
JLEACovers husband & wife under a single policy. Both spouses must be PLI-eligible. SA + accrued bonus paid on maturity or on first death of either spouse. Surviving spouse remains covered to maturity at no extra premium.
Bal Jeevan Bima — Children Policy
CHILDCover for the children of an existing PLI policyholder. Up to 2 children per family. Parent pays premium; if parent dies before child reaches maturity, future premiums are waived and policy continues. Bonus accrues fully.
For rural India
Rural Postal Life Insurance (RPLI)
Launched 1995 on Malhotra Committee recommendation. Available to all residents of rural areas (defined per the latest Census). Lower premiums vs PLI for the same SA. Maximum sum assured combined across all RPLI policies: ₹10 lakh.
| Plan | Type | Entry age | Bonus (FY 24-25) | Best for |
|---|---|---|---|---|
| Gram Suraksha | Whole Life | 19 – 55 | ₹65 / ₹1,000 | Lifelong cover, rural household |
| Gram Santosh | Endowment | 19 – 55 | ₹50 / ₹1,000 | Goal-based savings + cover |
| Gram Suvidha | Convertible Whole Life | 19 – 45 | ₹50 / ₹1,000 (post-conversion) | Flexible horizon |
| Gram Sumangal | Anticipated Endowment (15 / 20Y) | 19 – 40 / 45 | ₹47 / ₹1,000 | Money-back at intervals |
| Gram Priya | Anticipated Endowment (10Y) | 20 – 55 | ₹47 / ₹1,000 | Short-term money-back |
| Bal Jeevan Bima (Rural) | Children | 5 – 20 (child) | ₹50 / ₹1,000 | Child cover for rural parents |
Why PLI / RPLI beats private insurers
- • Premiums 20–40% lower for same SA
- • Bonus rates ₹47–₹76 per ₹1,000 SA — among highest in India
- • Government-backed — no insurer default risk
- • Loan against policy after 3 years
- • Surrender allowed after 3 years with proportionate bonus
Tax treatment
- • Premium: Section 80C (₹1.5L cap, old regime)
- • Maturity proceeds + bonus: tax-free under Section 10(10D) if annual premium ≤ 10% of SA
- • Death claim: tax-free always
- • Loan against policy: not taxable, but interest paid is not deductible
How to apply
- 1. Visit any head / sub post office, or apply on the PLI portal
- 2. Fill Proposal Form + Medical Examination Report (above ₹1 L SA)
- 3. Submit eligibility proof — pay slip / employer letter / professional ID
- 4. Pay first premium; policy bond issued in 7–14 days
- 5. Set up auto-debit / ECS for monthly / quarterly / half-yearly / annual premium
Bonus rates shown are as last declared by the Department of Posts for FY 2024-25 and are illustrative. Actual bonus is declared annually and varies by valuation year. Final maturity = Sum Assured + (Bonus × policy years held). Source: indiapost.gov.in / pli.indiapost.gov.in.
Which Post Office scheme should you pick?
If you have a girl child under 10
Start Sukanya Samriddhi (SSY) — 8.2% tax-free, 21-year lock-in. Best long-term scheme in this list. ₹1.5 L/year × 14 years = ~₹70L corpus.
For long-term tax-saving (₹1.5L 80C cap)
PPF wins on tax (EEE, fully tax-free) and 15-year discipline. NSC wins on rate (7.7% vs 7.1%) but interest is taxable. For most salaried, PPF is the better core; add NSC if you have more 80C room.
If you are 60+ (or 55+ on retirement)
SCSS at 8.2% is the best fixed-income option for seniors. Up to ₹30 L deposit. Combine with POMIS ₹9-15L for total ~₹45L generating ~₹28K/month.
🎉 Budget 2025 update: Senior citizen TDS threshold doubled from ₹50,000 to ₹1,00,000 per financial year under Section 194A (effective FY 2025-26). At 8.2% SCSS rate, deposits up to ₹12.2 lakh now generate exactly ₹1L interest = zero TDS. Plus you get ₹50K 80TTB interest exemption on top. For super seniors (75+) with only pension + interest from same bank, submit Form 12BBA to skip ITR filing entirely (Section 194P).
If you want money-doubling guarantee
KVP at 7.5% doubles money in ~115 months (~9.5 years). No tax benefit but principal is government-guaranteed. Useful for risk-averse lump sum parking.
If you are a woman/girl (any age)
Mahila Samman Savings Certificate (MSSC) at 7.5% for 2 years, ₹2 lakh max. Good for short-term parking or first savings account. For longer-term goals, SSY (if under 10) or PPF beats MSSC.
Bank FD alternative
Post Office Time Deposit (POTD) at 6.9–7.5% across 1/2/3/5-year tenures. The 5-year TD is 80C eligible. Sovereign-backed (full principal guarantee) vs bank FDs which have DICGC coverage only up to ₹5 lakh.
Rates summary (Q1 FY 2026-27)
| Scheme | Rate | Tenure | Tax |
|---|---|---|---|
| Sukanya Samriddhi | 8.2% | 21 years | EEE |
| SCSS (Senior) | 8.2% | 5 + 3 years | 80C + slab |
| NSC | 7.7% | 5 years | 80C |
| Post Office TD (5Y) | 7.5% | 5 years | 80C + slab |
| KVP | 7.5% | ~115 months | Slab |
| Mahila Samman | 7.5% | 2 years | Slab |
| POMIS | 7.4% | 5 years | Slab (monthly) |
| PPF | 7.1% | 15 years | EEE |
| Post Office RD | 6.7% | 5 years (+5 ext) | Slab |
Rates revised quarterly by the Ministry of Finance. Source: India Post / Department of Economic Affairs. Last revised: 1 April 2026. Next revision: 1 July 2026.