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Make low-risk investments in Post Office Savings Schemes and earn guaranteed returns.
Post office savings schemes are backed by the Government of India, ensuring low-risk for investors. These schemes are offered at competitive rates and allow you to invest in a range of investment options. This could range from recurring deposits to monthly income schemes.
These financial products are tailored to meet different financial goals, like retirement, child’s education, or wealth accumulation. Post office investment schemes provide a secure and reliable way to grow your wealth.
The Government of India sets the interest rates for post office investment schemes. These rates are reviewed periodically. Here’s an overview of the current post office saving scheme interest rates:
Post Office Saving Schemes |
Interest Rate (p.a.) |
Tenure |
Minimum Investment |
|---|---|---|---|
Post Office Savings Account |
4.0% |
No fixed tenure; until account closure |
₹500 |
Post Office Recurring Deposit (RD) |
6.7% |
5 years |
₹100 per month |
Post Office Time Deposit (TD) 1–5-year tenure |
1 year - 6.9% 2 years – 7.0% 3 years - 7.1% 5 years - 7.5% |
1-5 years |
₹1,000 |
Post Office Monthly Income Scheme (MIS) |
7.4% |
5 years |
₹1,000 |
Post Office Senior Citizens Savings Scheme (SCSS) |
8.2% |
5 years |
₹1,000 |
Note: The interest rate per annum mentioned above are valid as of August 2024 and are subject to change from time to time.
This account is similar to a savings account you hold with a bank
The interest earned is taxed as per your income tax bracket and not subject to TDS
The minimum investment limit is ₹500 for account opening
You must maintain a minimum balance of ₹500 at the end of each financial year
Interest earned from this post office investment plan is eligible for a deduction of up to ₹10,000 under Section 80TTA of the Income Tax Act, 1961
This recurring deposit has a fixed 5-year tenure and the Interest is compounded quarterly
You must invest a minimum of ₹100 per month in this post office savings scheme
A penalty of ₹1 per ₹100 is applied for missed payments
You could get up to 50% of the balance as a loan if you have made 12 instalments and continued the account for 1 year
The time deposit offered by the post office works like a bank issued fixed deposit with a tenure of 1 to 5 years
The minimum investment is ₹1,000 and in multiples of ₹100 with no limit on the maximum amount
The post office savings scheme for time deposits can be pledged as collateral for loans
The term deposit can be opened by up to 3 adults in a joint account
The post office monthly income scheme provides regular returns, making it an attractive option for all types of investors
You can invest a minimum of ₹1,000, with a maximum of ₹9 Lakhs for a single account and ₹15 Lakhs for a joint account
The post office monthly investment scheme has a 5-year tenure and it allows account transfers between branches
The post office senior citizen saving scheme is for individuals aged over 60 years and defence retirees over 50 years but under 60 years
Interest is paid quarterly in this scheme
The minimum investment is ₹1,000, and the maximum is ₹30 Lakhs
Premature withdrawal is allowed, subject to a penalty fee
This post office saving scheme allows investments starting at ₹500, with a yearly cap of ₹1.5 Lakhs
PPF has a 15-year lock-in period, extendable by 5-year blocks
The interest earned on PPF investments is tax-free
Contributions are eligible for deductions of up to ₹1.5 Lakhs per year under Section 80C
NSC is a 5-year post office savings scheme
The minimum investment is ₹1,000 with no upper limit
This investment allows you to claim deductions of up to ₹1.5 Lakhs under Section 80C
NSC can be pledged as collateral for loans
The minimum deposit is ₹1,000 with no maximum limit
KVP can be transferred or pledged as security for a loan
KVP can be closed at any time before the maturity date, subject to certain conditions like account holder’s demise, court order, etc.
This is a post office savings scheme for girl child beneficiaries under 10 years old
The minimum investment is ₹250, with a maximum of ₹1.5 Lakhs per financial year
The interest payout upon maturity is tax-free
Contributions qualify for Section 80C deductions of up to ₹1.5 Lakhs per financial year
There are many benefits that you get to enjoy by opening a post office savings account. Let’s take a quick look at some of them.
Simple Account Opening Application Process
Opening a savings account is simple and quick. Submit the application form at your nearest post office branch with the required documents.
Easy Accessibility
If you have internet banking, you can easily access your savings account online from home. This convenience allows you to manage your account without visiting a branch.
Low-free
All deposits in a savings account are backed by the government, ensuring low-risk investment.
Attractive Interest Rates
India Post offers a savings account interest rate that's higher than many banks. This makes it an attractive option for people looking to save.
You can apply for a savings scheme at the post office through online and offline means. Here’s how it works:
Online Method
Place a request for mobile and internet banking at the post office
Go to the official e-banking website
Use the activation code sent to you within 48 hours of account opening
Navigate to the ‘New User Activation’ option
There, you will be able to access the following facilities:
Opening a Recurring Deposit or Fixed Deposit
Deposit funds into your PPF/SB/SSA/RD account
Withdraw from your PPF
Acquire an RD Loan
Repay your RD Loan or PPF Loan
View transactions
Get a mini-statement
Nominate an individual
Transfer accounts
Make a death claim
Offline Method
Visit your nearest post office branch
Carry all the required documents with you
Complete the form provided to you at the post office
Submit the documents and the form
Here’s a list of the documents required to apply for a Post Office Savings Scheme:
KYC Form
Aadhaar Card
PAN Card
Passport
Voter ID Card
Birth certificate
Driving licence
Note: Additional documents could be requested depending on the scheme that you choose. Please enquire about this beforehand to avoid any inconvenience.
There are many differences between the savings schemes offered by the post office and other investment avenues. These distinctions are particularly evident in those offered by financial institutions. Here’s a quick look at a few of them:
The interest rates offered by India Post tend to be around 4% per annum to 7.6% per annum. The interest rates on other savings schemes like bank FDs and RDs range from 4% per annum to 8% per annum.
All schemes offered by the post office are government-backed and risk-free. However, other savings schemes may carry some risk.
Post office schemes offer tax benefits in the form of deductions under Section 80C. Some also provide tax-free interest.
The Monthly Income Scheme and Senior Citizens Savings Scheme offers a regular income
Here’s the table with taxability details on different saving schemes by the Post Office:
Scheme Name |
Taxability |
|---|---|
Post Office Time Deposit Account |
Investment in 5-year TD qualifies for tax benefits u/s 80C |
Post Office Monthly Income Savings Account |
Interest earned is taxed as per income tax slab |
Senior Citizen Savings Scheme |
Tax deductions on maximum investment of up to ₹1.5 Lakhs available u/s 80C |
National Savings Certificate |
Tax benefit under Section 80C on deposits made in NSC; interest earned for the first 4 years is eligible for deductions under the same section |
Disclaimer: Visit the official website of India Post for Senior Citizen Savings Scheme details.
India Post has prescribed a schedule of fees that are applicable for all of its saving schemes.
Schedule of Charges |
Amount |
|---|---|
Duplicate Passbook |
₹50 |
Deposit Receipt and Statement of Account |
₹20 |
Passbook in lieu of mutilated or lost certificate |
₹10 per registration |
Nomination change or cancellation |
₹50 |
Account Transfer Charges |
₹100 |
Note: All of the amounts prescribed in the above table are exclusive of GST.
The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.
You can invest in a Post Office Monthly Income Scheme offline. Simply visit the nearest post office to get an application form and submit it along with documents like ID and address proof. You can deposit up to ₹4.5 Lakhs in a single account or up to ₹9 Lakhs in a joint account.
Yes, you can withdraw money from your post office savings account at any post office branch in India.
Withdrawals at the branch are capped at ₹10,000 per day, while ATM withdrawals are limited to ₹25,000 per day.
Yes. You can access your post office account online, if registered for internet banking.
Yes. These are government-backed schemes, ensuring low-risk. However, only a few schemes offer tax-free interest, such as the Public Provident Fund and Sukanya Samriddhi Yojana.
There are no exclusive post office investment schemes for students. However, students can invest in most post office savings schemes, except for the Senior Citizen Savings Scheme (SCSS).
Several schemes offered by the post office have a 5-year tenure. These include:
Recurring Deposit
Time Deposit
Monthly Income Scheme (MIS)
Senior Citizens Savings Scheme (SCSS)
National Savings Certificate (NSC)
Yes, you can transfer funds from your post office account to your bank account. You can do this by visiting a nearby post office or using internet banking.
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