Every rate below is the notified Q2 FY 2026-27 rate. Every tax number is worked to the rupee.
Short answer: parked across SCSS, POMIS and senior-citizen FDs at today's notified rates, a ₹75 Lakh corpus pays about ₹47,800 a month (₹5,73,600 a year) without touching principal. Income tax on it: ₹8,680 on paper (5% on the slice above ₹4 lakh).
Rates are for Q2 FY 2026-27 (Jul-Sep 2026), unchanged for the 10th straight quarter · New tax regime, FY 2026-27 · Figures are indicative, as of August 2026
This is a reference allocation, not advice — your health costs, family support and risk appetite move the pieces. What does not move is the arithmetic.
| Where it sits | Amount | Rate | Interest / year | Paid out |
|---|---|---|---|---|
| SCSS — at the ₹30 lakh cap | ₹30,00,000 | 8.2% | ₹2,46,000 | Quarterly |
| Post Office Monthly Income Scheme | ₹9,00,000 | 7.4% | ₹66,600 | Monthly |
| Senior-citizen bank FDs | ₹36,00,000 | 7.2% | ₹2,61,000 | Monthly / quarterly |
| Total | ₹75,00,000 | — | ₹5,73,600 | ≈ ₹47,800/month |
SCSS pays quarterly simple interest; POMIS pays monthly; FD assumes a large-bank senior rate of 7.25% (typical Aug 2026 range 6.75–7.30%). SCSS and POMIS rates are government-notified for Q2 FY 2026-27.
Interest of ₹5,73,600 against the new regime: ₹8,680 on paper (5% on the slice above ₹4 lakh) — and the Section 156(2)(a) rebate wipes it to zero, because total income is under ₹12 lakh.
TDS is a separate machine from tax. Any single payer (a bank, or the post office as one payer) that credits you more than ₹1 lakh of interest in the year must deduct 10% — even when your final tax is nil. Form 121, filed at the start of the year with each payer, switches that deduction off when your liability is zero.
Interest of about ₹5,73,600 crosses the ₹4 lakh exemption, so tax technically arises — about ₹8,680 at 5%. The Section 156(2)(a) rebate then cancels it, because total income is under ₹12 lakh. The practical consequence: your ITR is no longer optional decoration. File it, claim the rebate, and recover any TDS — skipping the return at this level leaves real money with the department.
Deposit insurance covers ₹5 lakh per depositor per bank — principal plus interest. A single ₹36 lakh FD in one bank means ₹31 lakh riding on that bank's health. Spread across several banks (or held jointly with different first-holders, which creates separate coverage), the same money is insured several times over. This also flips the TDS math: ₹36 lakh in one bank earns ₹2,61,000 — over the ₹1 lakh threshold, so TDS applies; split five ways, each bank sees about ₹52,200 and none of them deducts anything. Safety and paperwork point the same direction here.
If your spouse is also 60+, their unused ₹30 lakh SCSS ceiling converts the weakest ₹30 lakh of this ladder (FDs at ~7.25%) into SCSS at 8.2% — roughly ₹28,500 a year of extra interest for one form at the post office.
Three resets are built in: SCSS matures at year 5 (then extends in 3-year blocks at the then-prevailing rate), POMIS matures at year 5, and each FD at its own term. Small-savings rates are reviewed every quarter — they have not moved since January 2024, but each reset re-prices your income at whatever is then notified. Revisit the ladder at every maturity, not every headline.
About ₹47,800 a month at current notified rates, using SCSS at 8.2%, POMIS at 7.4% and senior bank FDs around 7.25% — without spending principal.
Total interest is about ₹5,73,600 a year. ₹8,680 on paper (5% on the slice above ₹4 lakh) — and the Section 156(2)(a) rebate wipes it to zero, because total income is under ₹12 lakh.
Yes, wherever one payer credits over ₹1 lakh of interest in the year — unless you file Form 121 (the declaration that replaced Form 15H from 1 April 2026) with that payer at the start of the financial year.
No. SCSS locks its rate for your 5-year term, POMIS for its term, FDs until maturity. Each renewal re-prices at the rate then notified — the government reviews small-savings rates every quarter.
Related: All corpus levels · Senior FD rates · Form 121 · FD Calculator
A note on section numbers. The Income-tax Act, 2025 replaced the Income-tax Act, 1961 with effect from 1 April 2026. Section numbers on this page are those of the 2025 Act. Where you know a provision by its old number, the mapping is: 115BAC → 202, 87A → 156, 16(ia) → 19, 80CCD(2) → 124, 112A → 198, 10(10) → 19(1) Table Sl. Nos. 3-6.
The official pages this page is checked against. If one of them disagrees with us, it wins.
Written and checked by the PaisaSamajh editorial desk · Last reviewed: 24 August 2026 · How we check this →