Two government-backed savings schemes are emerging as attractive options for investors seeking stable, low-risk returns amid uncertain markets. According to reports from ABP Live Business, the Post Office Monthly Income Scheme (POMIS) and the Senior Citizens Savings Scheme (SCSS) offer fixed interest rates that are currently higher than many bank fixed deposits. These schemes are specifically designed to provide regular income, making them particularly appealing for retirees and conservative investors.
The Post Office Monthly Income Scheme has maintained its 7.4% interest rate for the April-June 2026 quarter, as announced by the Ministry of Finance on March 30, 2026. At this rate, an individual can invest up to ₹9 lakh in their individual account, generating a monthly income of approximately ₹5,500. For joint accounts, investments up to ₹15 lakh can yield around ₹9,250 per month. The scheme has a lock-in period of five years, after which the full principal is returned, with early withdrawal allowed at a penalty of 1-2%.
The Senior Citizens Savings Scheme, aimed at those aged 60 and above, offers a higher interest rate of 8.2% per annum, with interest paid quarterly. According to ABP Live Business, under SCSS, individuals can invest up to ₹30 lakh, either alone or jointly. An investment of ₹30 lakh can yield about ₹61,500 per quarter, which works out to just over ₹20,000 per month. The scheme is specifically designed to provide dependable income for senior citizens.
Both schemes are backed by the government, making them low-risk investment options. As reported by ABP Live Business, they are especially suited for those seeking dependable income rather than high returns. These schemes also stand out because they offer better rates than many traditional fixed deposits, along with regular payouts that can help meet monthly expenses. However, investors should note that these are not flexible, high-liquidity options, as funds are locked in for a fixed period, and early withdrawals may reduce returns. The POMIS interest rate has remained unchanged since April 1, 2023, and tracks the secondary market yields of G-secs of comparable maturities plus 0.25%.
