Top 5 Post Office Schemes to Get Section 80C Benefits

Introduced under an indispensable agenda of savings and investments, the Central Government of India has brought different Post Office schemes backed up with the sovereign guarantee. While there are schemes that offer various deposit measures, there are some schemes which offer tax benefits to the investors. In this article you will get an insight of the top 5 Post Office schemes to get Tax rebates under the Section 80C of Income Tax Act. These will be beneficial for you if you plan to stay in the old regime of income taxation. 

The interest rates associated with these schemes are revised by the Government every 3 months to a year. And the best part is that by depositing a small amount over a certain period of time, you can actually get higher returns than other saving accounts or FD schemes.

Top 5 Post Office Schemes (Benefits under Section 80C)

Here is an overview table with different characteristics of the Post Office schemes that offer tax benefits-

Parameters	Sukanya Samriddhi Yojana (SSY)	Senior Citizens Savings Scheme (SCSS)	Public Provident Fund (PPF)	Post Office Recurring Deposit (RD)	Post Office Savings Account
Current Interest Rate	8.2%	8.2%	7.1%	6.7%	4.0%
Entry Age	Below 10 years	55 Years	No Age Limit	10 Years	10 Years
Maturity	21 years	5 years	15 years	5 years	21 years
Tax Rebate	EEE (Exempt-Exempt-Exempt)	Tax deduction up to Rs.1.5 lakh	EEE (Exempt-Exempt-Exempt)	Tax deduction up to Rs.1.5 lakh	Income up to Rs.10,000 is tax-deductible
Minimum Deposit	Rs.250 per year	Rs.1000	Rs.500	Rs.100 per month	Rs.500
Maximum Deposit	Rs.1.5 lakh per year	Rs.15 Lakh	Rs.1.5 Lakh	No Limit	No Limit

Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana or SSY is a small savings scheme formulated with the objective of the welfare of the girl child. The parent or guardian of the girl child can get a SSY Account opened before she reaches the age of 10 years, from post office or bank. The current Sukanya Samriddhi Yojana interest rate for July to September 2025 is 8.2%. Under Section 80C of the Income Tax Act, Post Office Sukanya Samriddhi Scheme is categorised under EEE (Exempt-Exempt-Exempt) tax status. This implies that the principal amount, the interest earned and maturity amount are exempted from tax.

The maturity amount can be redeemed after the age of 21 years. However, premature withdrawals are allowed after the girl reaches the age of 18 years for education purposes only. Moreover, it must be noted that a minimum of Rs.250 must be deposited in SSY account every year and penalty will be charged in case of any kind of deviations.

To know more about Sukanya Samriddhi Yojana (SSY), Interest Rates and Benefits, Click Here

Public Provident Fund (PPF)

PPF or Public Provident Fund is one of the most popular saving schemes regulated by the Central Government of India. The current Public Provident Fund interest rate for the second quarter of the year 2025-2026 is 7.1%. Like Sukanya Samriddhi Yojana, PPF is also categorised under the Exempt-Exempt-Exempt (EEE) tax status. The interest earned and the principal amount are not just risk-free but are also exempted from tax. 

The contributions made in PPF account are eligible for tax deductions up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961. The Public Provident Fund scheme has a tenure of 15 years but premature withdrawals can be initiated after the seventh financial year.

Related Article: Public Provident Fund, Eligibility and Interest Rates

Post Office Recurring Deposits (PORD)

Post Office Recurring Deposit is an investment option wherein the investors can make monthly deposits for a period of 5 years. The Post Office Recurring Deposit interest rate is 6.7% per annum (compounded annually). For instance, if you invest Rs.10,000 for 5 years in your RD account, then you will get Rs. 7,13,659 at the time of maturity.

Moreover, the subscribers of PORD can enjoy tax deductions up to Rs.1,50,000 under Section 80C. There is no TDS on interest earned from this account but the income remains taxable at the hands of the investors as per their tax slab.

Post Office Savings Account (POSA)

Post-offices allow you to open a savings account just like you open one with the Bank. Post Office savings account can be opened with a minimum deposit of Rs. 500 and has no maximum limit on the deposit amount. The current Post Office savings account interest rate is 4% which is paid on the balance of the savings account by the post office. While the interest earned is fully taxable, there is no TDS on the amount. 

Under Section 80TTA of the Income Tax Act, the income earned from savings accounts (including Post Office Savings Account) up to Rs.10,000 is tax-deductible from gross income. It must be acknowledged that senior citizens with a Post-office savings account will get interest income exemption higher than others. No deductions under 80TTA are allowed for senior citizens.

Click here to know more about Post-office Savings Account

Senior Citizen Savings Scheme (SCSS)

Individuals above the age of 60 and individuals from the age of 55 to 60 who have opted for voluntary retirement can invest in Senior Citizen Savings Scheme (SCSS). This Post Office scheme has a tenure of 5 years and investments are capped at Rs.15 lakh. Currently, the Senior Citizen Savings Scheme scheme interest rate is  8.2%.

Investments in this scheme are eligible for tax deductions under Section 80C of the Income Tax Act. But, if the interest earned is more than Rs.10,000 in a year, tax will be deducted at source.

Why Should One Choose a Post Office Scheme?

Here are a few key benefits provided by Post Office Saving Schemes to the subscribers-

• You can earn a good interest amount falling between 4% to 8.2% on all the Post-office schemes
• These are government-backed schemes that come with sovereign guarantee. Thereby, the investments are absolutely risk-free
• Most of the Post Office schemes formulated by Post-offices give tax benefits to the investors under Section 80C of the Income Tax Act
• You can initiate long-term savings by investing in such schemes as the tenure of most of the POSS is up to 15 years
• The enrollment process as well as documentation under these schemes is very easy. You just have to provide a limited set of documents to get yourself started

These are the top five Post-Office Schemes that can be invested in to get Section 80C benefits. For the population of India, these schemes are considered as easy, efficient and safe investment options. You can analyse each scheme and the benefits which it offers to finally select the best one for your investment goal.