All 12 Government Schemes: The Master Comparison Table
Rates effective Q1 FY 2026-27 (April-June 2026). Unchanged for 8 consecutive quarters.
| Scheme | Rate | Compounding | Payout | Lock-in | Max Investment | Tax on Interest | 80C Eligible |
|---|---|---|---|---|---|---|---|
| SSY | 8.20% | Annual | At maturity | 21 years | Rs 1.5L/year | Exempt (EEE) | Yes |
| SCSS | 8.20% | Quarterly | Quarterly | 5 years | Rs 30 lakh | Slab rate | Yes |
| RBI FRB | 8.05% | Semi-annual | Semi-annual | 7 years | No limit | Slab rate | No |
| NSC | 7.70% | Annual | At maturity | 5 years | No limit | Slab rate (at maturity) | Yes |
| KVP | 7.50% | Annual | At maturity | 115 months | No limit | Slab rate | No |
| PPF | 7.10% | Annual | At maturity | 15 years | Rs 1.5L/year | Exempt (EEE) | Yes |
| POMIS | 7.40% | Monthly | Monthly | 5 years | Rs 10L (single) | Slab rate | No |
| Post Office TD (5Y) | 7.50% | Quarterly | Annual | 5 years | No limit | Slab rate | Yes (5Y only) |
| Post Office TD (3Y) | 7.10% | Quarterly | Annual | 3 years | No limit | Slab rate | No |
| Post Office TD (2Y) | 7.00% | Quarterly | Annual | 2 years | No limit | Slab rate | No |
| Post Office TD (1Y) | 6.90% | Quarterly | Annual | 1 year | No limit | Slab rate | No |
| NPS | 10-14%* | Market-linked | At exit | None* | No limit | 60% exempt | Yes (80CCD) |
*NPS returns are market-linked, not guaranteed. Lock-in removed Dec 2025.
Post-Tax Returns: The Real Comparison
Pre-tax rates are misleading. Here’s what you actually keep at each tax bracket:
At 30% Tax Bracket (Income > Rs 15 lakh, Old Regime)
| Scheme | Pre-Tax Rate | Post-Tax Effective Rate | Rs 1 lakh → After 5 Years |
|---|---|---|---|
| SSY | 8.20% | 8.20% (EEE) | Rs 1,48,595 |
| PPF | 7.10% | 7.10% (EEE) | Rs 1,40,710 |
| SCSS | 8.20% | 5.74% | Rs 1,32,252 |
| RBI FRB | 8.05% | 5.64% | Rs 1,31,607 |
| NSC | 7.70% | 5.39% | Rs 1,30,021 |
| KVP | 7.50% | 5.25% | Rs 1,29,153 |
| POMIS | 7.40% | 5.18% | Rs 1,28,706 |
| Post Office TD 5Y | 7.50% | 5.25% | Rs 1,29,153 |
Key insight: SSY and PPF are 40-55% more productive than taxable schemes at the 30% bracket. A taxable scheme must offer 11.71% to match SSY’s 8.2% post-tax. No government scheme comes close.
At 20% Tax Bracket (Income Rs 10-15 lakh, Old Regime)
| Scheme | Pre-Tax Rate | Post-Tax Effective Rate |
|---|---|---|
| SSY | 8.20% | 8.20% |
| PPF | 7.10% | 7.10% |
| SCSS | 8.20% | 6.56% |
| RBI FRB | 8.05% | 6.44% |
| NSC | 7.70% | 6.16% |
At 0% Tax Bracket (New Regime, Income < Rs 12 lakh)
| Scheme | Pre-Tax Rate | Post-Tax Effective Rate |
|---|---|---|
| SCSS | 8.20% | 8.20% (zero tax!) |
| SSY | 8.20% | 8.20% |
| RBI FRB | 8.05% | 8.05% |
| NSC | 7.70% | 7.70% |
| PPF | 7.10% | 7.10% |
At zero tax bracket, SCSS and RBI FRB beat PPF on absolute returns. This is why senior citizens under new regime (income below Rs 12 lakh) should maximize SCSS over PPF.
The Decision Matrix: Which Scheme For Which Goal
For Retirement (20+ year horizon)
| Priority | Best Scheme | Why |
|---|---|---|
| Maximum growth | NPS (75% equity) | 12-14% CAGR potential, 80CCD(1B) extra deduction |
| Maximum safety + tax-free | PPF | 7.1% EEE, 15-year compounding |
| Maximum safety + high rate | VPF | 8.15% EEE (if employer allows) |
For Daughter’s Future (15-21 years)
| Priority | Best Scheme | Why |
|---|---|---|
| Highest guaranteed return | SSY | 8.2% EEE, 21-year compounding = ~Rs 73 lakh on Rs 1.5L/year |
| Combined education + retirement | SSY + NPS Vatsalya | Education from SSY at 18, retirement from Vatsalya |
For Monthly/Quarterly Income
| Priority | Best Scheme | Monthly Income on Rs 10 Lakh |
|---|---|---|
| Maximum income (senior citizen) | SCSS | Rs 6,833/month (quarterly payout) |
| Regular monthly | POMIS | Rs 6,167/month |
| Higher rate, semi-annual | RBI FRB | Rs 6,708/month equivalent |
For Short-Term Parking (1-3 years)
| Priority | Best Scheme | Why |
|---|---|---|
| Highest rate, 2 years | Post Office TD (2Y) | 7.0%, sovereign guaranteed |
| Highest rate, 1 year | Post Office TD (1Y) | 6.9%, sovereign guaranteed |
| Need 80C deduction | NSC | 7.7%, 5 years, 80C eligible |
For Tax Saving (80C)
| Scheme | Rate | Lock-in | Post-Tax Return (30% bracket) |
|---|---|---|---|
| SSY | 8.20% | 21 years | 8.20% (EEE) — BEST |
| PPF | 7.10% | 15 years | 7.10% (EEE) |
| SCSS | 8.20% | 5 years | 5.74% |
| NSC | 7.70% | 5 years | 5.39% |
| ELSS (MF) | 12%* (market) | 3 years | ~10% after LTCG |
| Post Office TD (5Y) | 7.50% | 5 years | 5.25% |
The 8-Quarter Rate Freeze: What It Means
Small savings rates are supposed to reset quarterly based on the Shyamala Gopinath Committee formula:
| Scheme | Formula (G-Sec Yield + Spread) | Formula Rate | Actual Rate | Difference |
|---|---|---|---|---|
| PPF | 10Y G-Sec + 25 bps | ~7.05% | 7.10% | +5 bps |
| SSY | 10Y G-Sec + 75 bps | ~7.55% | 8.20% | +65 bps |
| SCSS | 10Y G-Sec + 100 bps | ~7.80% | 8.20% | +40 bps |
| NSC | 5Y G-Sec + 25 bps | ~7.15% | 7.70% | +55 bps |
The government is overpaying by 40-65 bps on most schemes. This is a political subsidy — small savings rates are visible to voters, and cutting them ahead of elections is politically toxic.
Risk: If rates are eventually “corrected” to formula, expect:
- SSY could drop from 8.2% to ~7.5%
- SCSS could drop from 8.2% to ~7.8%
- PPF stays roughly stable (already near formula)
When might this happen? Not before 2027 state elections. The 8-quarter freeze suggests deliberate political holding. Once election pressure eases, a phased correction (25 bps per quarter) is likely.
Schemes That Are Dead or Dying
Sovereign Gold Bonds (SGB) — No New Issuance
- Last issued: February 2024
- Government declared it “high-cost borrowing”
- Existing series trade on BSE/NSE at 3-5% discounts to spot gold
- Budget 2026 change: Secondary market buyers now pay 12.5% LTCG
- Original subscribers holding to maturity still get tax-free capital gains
- Verdict: Dead for new investors. Existing holders should hold to maturity.
Mahila Samman Savings Certificate — Discontinued
- Closed: March 31, 2025
- No replacement announced
- Existing accounts honor 7.5% until maturity
- Verdict: Gone. Use Small Finance Bank FDs (7.5-8.5%) as replacement.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) — Closed
- Closed for new subscriptions since March 2023
- Was 7.4% for 10 years (senior citizens only)
- Existing policies continue until maturity
- Verdict: Gone. SCSS at 8.2% is the direct (and better) replacement.
The Optimal Portfolio by Life Stage
Young Professional (25-35, Single)
| Allocation | Scheme | Amount/Year | Purpose |
|---|---|---|---|
| 80CCD(1B) | NPS | Rs 50,000 | Extra deduction + equity growth |
| 80C | PPF | Rs 50,000 | Tax-free compounding base |
| 80C | ELSS | Rs 50,000 | Market returns + 3-year lock |
| Flexible | Index fund SIP | Rs whatever remains | Wealth creation |
Parent (30-45, Daughter Under 10)
| Allocation | Scheme | Amount/Year | Purpose |
|---|---|---|---|
| 80C priority | SSY | Rs 1.5 lakh | Daughter’s education (8.2% EEE) |
| 80CCD(1B) | NPS Vatsalya | Rs 50,000 | Daughter’s retirement foundation |
| 80CCD(1B) | Own NPS | Already included above | Combined Rs 50K limit |
| Flexible | Equity MF SIP | Rs whatever remains | Wealth creation |
Pre-Retiree (50-58)
| Allocation | Scheme | Amount/Year | Purpose |
|---|---|---|---|
| 80C | PPF | Rs 1.5 lakh | Tax-free corpus (matures at 65+) |
| 80CCD(1B) | NPS | Rs 50,000 | 60% tax-free lump sum at 60 |
| Safety | RBI FRB | Rs 5-10 lakh | 8.05%, no cap, sovereign |
| Bulk safety | SCSS (if 55+ woman) | Up to Rs 30 lakh | 8.2% quarterly income |
Senior Citizen (60+)
| Allocation | Scheme | Amount | Monthly Income |
|---|---|---|---|
| Core income | SCSS | Rs 30 lakh | Rs 20,500/quarter |
| Monthly payout | POMIS | Rs 10 lakh | Rs 6,167/month |
| Growth buffer | RBI FRB | Rs 10-20 lakh | Rs 4,025/semi-annual per lakh |
| Emergency | SFB Savings Account | Rs 3-5 lakh | 7% on balance |
| Total | Rs 53-65 lakh | Rs 26,000-30,000/month |
The 3 Things Nobody Tells You
1. The “Formula Premium” Could Vanish
The government is paying 40-65 bps above the formula rate. If they correct to formula:
- Your existing deposits are locked at the old rate? NO. PPF/SSY rates can be cut for existing accounts (they apply to the entire balance, not just new deposits).
- Only SCSS locks the rate for the 5-year tenure. SSY and PPF rates float quarterly.
2. Rs 12 Lakh Exemption Changed the Game for Senior Citizens
Under the new regime (FY 2025-26 onwards), income up to Rs 12 lakh is tax-free. A senior citizen with:
- SCSS: Rs 30 lakh → Rs 2.46 lakh/year interest
- POMIS: Rs 10 lakh → Rs 74,000/year interest
- RBI FRB: Rs 10 lakh → Rs 80,500/year interest
- Total: Rs 4 lakh/year — fully tax-free under new regime
This means SCSS (8.2% taxable) effectively becomes 8.2% tax-free for many senior citizens. It now matches SSY’s post-tax yield.
3. The NPS Annuity Problem Is Solved (Almost)
With annuity reduced to 20% and SLW available, NPS is now viable for people who rejected it because of the 40% annuity trap. The remaining issue: the 60% vs 80% tax gap that hasn’t been harmonized.
Quick Reference: Eligibility Cheat Sheet
| Scheme | Who Can Invest | Who Cannot |
|---|---|---|
| SSY | Parents/guardians of girls under 10 | Boys, girls over 10, NRIs (new accounts) |
| SCSS | Women 55+, Men 60+, Retired defense 50+ | Anyone below age threshold |
| PPF | Any Indian resident | NRIs (new accounts; existing continue) |
| NSC | Any Indian resident | NRIs |
| RBI FRB | Any Indian resident (individuals only) | NRIs, HUFs, Trusts |
| POMIS | Any Indian resident | NRIs |
| KVP | Any Indian resident | NRIs |
| NPS | Indian citizens 18-70 | NRIs can invest; OCI cannot |
| NPS Vatsalya | Minors (through guardian) | Non-resident children (unclear) |
| SGB | Indian residents | NRIs (cannot buy; can hold if became NRI after purchase) |
The Final Word: What to Do Right Now
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If you’re doing nothing: Start PPF (Rs 500/month minimum). It’s tax-free, zero-risk, and the 15-year lock enforces discipline.
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If you have a daughter under 10: SSY is non-negotiable at 8.2% EEE. Open today.
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If you’re 55+ (woman) or 60+ (man): SCSS up to Rs 30 lakh is the best fixed income in India right now.
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If you want regular income: POMIS (monthly) or SCSS (quarterly) — both require zero effort after opening.
-
If you’re in 30% bracket and want maximum post-tax: PPF + NPS 80CCD(1B) = Rs 2 lakh/year in tax-advantaged government-backed instruments.
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If you want the highest absolute rate with no limit: RBI Floating Rate Bonds at 8.05%, invest any amount, sovereign guaranteed. The 7-year lock is the only constraint.
Rates are frozen for now. Lock in before the inevitable correction to formula rates — especially SSY and SCSS which are 40-65 bps above where they “should” be.