Post Office Investment Saving Schemes

What is Post Office Savings Schemes?

Post Office Savings Schemes are government-backed, secure financial products offered by India Post to help individuals save and invest for their future. These schemes meet various needs, from short-term savings to long-term wealth-building and retirement planning. With attractive interest rates and tax benefits, there’s a scheme for every financial goal, including regular income, children's savings, and retirement funds.

List of Schemes with their Interest Rates

Small Saving Schemes 

Tenure

Interest Rates

Tax Deduction on Investments?

Interest Taxable

Post Office Time Deposit

(1 year) 

1 Year

6.9%

No

Yes

Post Office Time Deposit

(2 year) 

2 Years

7.0%

No

Yes

Post Office Time Deposit

(3 year) 

3 Years

7.1%

No

Yes

Post Office Time Deposit

(5 year) 

5 Years

7.5%

Yes

Yes

Post Office Savings Account 

NA

4.0%

No

Yes

Post Office Recurring Deposit 

5 Years

6.7%

No

Yes

Post Office Monthly Income Scheme 

5 Years

7.4%

No

Yes

Kisan Vikas Patra (KVP) 

30 Months Lock-in Period

7.5%

No

Yes

National Savings Certificate 

5 Years

7.7%

Yes

No

Public Provident Fund (PPF) 

15 Years

7.1%

Yes

No

Sukanya Samriddhi Yojana 

21 Years

8.2%

Yes

No

Senior Citizens Savings Scheme 

5 Years

8.2%

Yes

Yes

Post Office Savings Account

Post Office Savings Schemes

  A Post Office Savings Account is a government-backed savings account offered by postal services in many countries. It provides a safe place to save money with the added benefit of earning interest. These accounts are accessible, low-risk, and often require a minimal initial deposit. It offers a competitive interest rate of 4.0% per annum on both individual and joint accounts.   

Post Office Recurring Deposit Account (RD) 

A Post Office Recurring Deposit (RD) account is a savings scheme where you deposit a fixed amount monthly for a specified period. It earns interest, and you get the principal along with the interest at maturity. It is offered by India Post and is a safe and low-risk investment option. It offers an attractive interest rate of 6.7% per annum. 

National Savings Time Deposit Account (TD) 

A National Savings Time Deposit (TD) account is a fixed deposit scheme offered by India Post where you invest a lump sum for a predetermined period. It offers higher interest rates compared to regular savings accounts, with interest paid at maturity. This account is a secure, low-risk investment option for saving over a fixed term.

Interest Rates: 

  1. 1-year account: 6.9% 
  2. 2-year account: 7.0% 
  3. 3-year account: 7.1% 
  4. 5-year account: 7.5% 

National Savings Monthly Income Account (MIS) 

The National Savings Monthly Income Account (MIS) is a government-backed savings scheme where you deposit a lump sum amount and receive monthly interest payments. It offers a fixed interest rate, ensuring a steady income every month. The account is low-risk and suitable for people looking for regular income after retirement or as an investment. The MIS offers an attractive interest rate of 7.4% per annum.

Senior Citizen Savings Scheme (SCSS) 

 The Senior Citizens Savings Scheme (SCSS) is a government-backed savings plan for individuals aged 60 and above, offering a quarterly interest rate of 8.20%. With a minimum deposit of ₹1,000 and a maximum of ₹30 lakh, it has a 5-year maturity period, extendable by 3 years. SCSS provides regular income, tax benefits, and allows premature withdrawals under certain conditions.  

Public Provident Fund Account (PPF) 

The Public Provident Fund Account (PPF) is a government-backed, long-term savings and investment program in India. It enables individuals to make periodic contributions to build wealth while enjoying tax advantages, and it comes with a predetermined maturity period, ensuring both security and financial growth.  PPF offers a competitive interest rate of 7.1% per annum 

Sukanya Samriddhi  Yojana Account (SSA) 

The Sukanya Samriddhi Yojana Account (SSY), is a unique savings program in India created specifically to support the financial needs of girl children. It permits parents or guardians to establish an account in the child's name, offering a safe and tax-advantaged means to save for her future educational and marriage expenses. It offers an attractive interest rate of 8.0% per annum

National Savings Certificates (NSC) 

The National Savings Certificates (NSC), are a government-backed savings and investment scheme in India. They provide a secure way for individuals to invest and earn interest over a fixed term, typically with tax benefits. It offers rate of 7.7% per annum.

Kisan Vikas Patra (KVP) 

The Kisan Vikas Patra (KVP),is a savings program in India aimed at promoting long-term investments among rural individuals, including farmers. It provides a secure investment avenue with predetermined tenures and competitive interest rates, known for its straightforward approach and accessibility to rural communities. It  offers interest rate of 7.5% per annum.

Mahila Samman Savings Certificate 

The Mahila Samman Savings Certificate is a dedicated savings program in India designed to uplift and empower women. It enables women to invest funds for a specific duration, often offering favourable interest rates and potential tax advantages, fostering financial self-sufficiency and stability among women. It offers interest rate of 7.5% per annum

Advantages of Investing in Post Office Savings Schemes: 

  • Easy and hassle-free documentation and procedures, suitable for both urban and rural investors. 
  • Competitive interest rates ranging from 4% to 8.2%, with minimal risk due to government backing. 
  • Eligibility for tax rebates under Section 80C for the deposit amount in most schemes. 
  • Some schemes offer tax exemption on the interest earned, making them tax-saving options. 
  • Diverse range of schemes to cater to varying investment needs and preferences. 

Documents Required 

  1. Account Opening Form (AOF) 
  2. KYC Form (For new customers or modification in KYC details) 
  3. PAN Card 
  1. Aadhaar card (If Aadhaar is not available, other acceptable documents may be submitted, such as a Passport, driver's license, voter’s ID card, Job card issued by MNREGA, or a letter issued by the National Population Register containing name and address.) 
  2. Proof of date of birth/birth certificate in case of a minor account (Mandatory for Sukanya Samriddhi Account) 
  3. KYC documents for all joint holders in the case of a Joint Account 
  4. KYC details of the guardian for a minor account 
  5. Proof of source of funds for investments above Rs.10 lakh 
  1. Proof of receipt of retirement benefits for Senior Citizens VRS account 

How to Open an Account in the Post office 

Opening an account at the post office involves a straightforward process, and here are the steps and requirements in detail: 

  1. Step 1: Choose the Type of Account- Decide which type of account you want to open, such as a Savings Account (SB), Recurring Deposit (RD), Time Deposit (TD), Monthly Income Scheme (MIS), or Senior Citizen Savings Scheme (SCSS). 
  1. Step 2: Visit your desired Post Office and request the relevant Account Opening Form (AOF) for the chosen account type. 
  2. Step 3: Complete the Account Opening Form (AOF) with accurate and legible information. Ensure that all required fields are filled in correctly. 
  3. Step 4: Collect the necessary Know Your Customer (KYC) documents required for opening the account. KYC documents typically include Proof of identity (e.g., Aadhar card, passport, voter ID, or driver's license), Proof of address (e.g., utility bill, rent agreement, or voter ID), and Passport-sized photographs. Any additional documents specified by the Post Office for the particular account type. 
  4. Step 5: Prepare a deposit slip (commonly referred to as SB 103) and attach it with your application. The deposit slip should indicate the initial amount you want to deposit into the account. 
  5. Step 6: Take the completed Account Opening Form (AOF), KYC documents, deposit slip, and initial deposit amount to your chosen Post Office branch. 
  1. Step 7: Submit the Application along with all the required documents and forms to the Post Office staff. They will review your application and documents for completeness. 
  2. Step 8: Verification and Account Activation 
  3. The Post Office will process your application and verify the information provided. This may take some time, depending on the type of account and specific Post Office procedures. 
  4. Step 9: Once your account is successfully opened and activated, you will receive account details, including your account number and any other relevant information. 
  5. Step 10: Now your Post Office account is functional. Make regular deposits or investments, and enjoy the benefits offered by your selected Small Savings Scheme. 

Fees and Charges for Various Services Related to Post Office Savings Schemes: 

  1. Issue of Duplicate Passbook: Rs.50 
  2. Issue of Statement of Account or Deposit Receipt: Rs.20 for each case. 
  3. Issue of Passbook in lieu of Lost or Mutilated Certificate: Rs.10 per registration. 
  1. Cancellation or Change of Nomination: Rs.50 
  2. Transfer of Account: Rs.100 
  3. Pledging of Account: Rs.100 
  4. Issue of Cheque Book in Savings Bank Account: No fee for up to 10 leaves in a calendar year, and thereafter at Rs.2 per cheque leaf. 
  5. Charges on Dishonour of Cheque: Rs.100 

How to Get Duplicate Certificates for Post Office Savings Schemes 

You can request a duplicate certificate from the Post office for the following reasons such as loss, theft, damage, mutilation, or defacement of the original certificate.  Follow the steps described below for getting a duplicate certificate from the Post office:  

  1. Step 1: Obtain the prescribed application form (usually labelled as NC-29) for duplicate certificates from the relevant Post Office or authorized authority. 
  2. Step 2: Fill out the application form accurately, providing all required information. Specify details about the lost, stolen, destroyed, mutilated, or defaced certificates. 
  3. Step 3: If the duplicate certificate requires an indemnity bond, create one according to the prescribed format. 
  1. Step 4: If the indemnity bond necessitates sureties or a bank guarantee, secure the necessary individuals or institutions to meet this requirement. 
  2. Step 5: Submit the completed application form, along with any accompanying documents like the indemnity bond and surety information, to the relevant authority. 
  3. Step 6: The authorities will review your application and documents to ensure they meet the specified requirements. 
  4. Step 7: Once your application is approved, a duplicate certificate will be issued to you. If the original certificates were mutilated or defaced, no indemnity bond is required. The duplicate certificate may be issued in the form of a Passbook. 

How to Get a Duplicate Passbook for Post Office Savings Schemes 

Follow the instructions below to obtain a duplicate Passbook from the Post office:  

  1. Step 1: Make the request for a duplicate passbook at the respective Head Post Office. 
  2. Step 2: Obtain the prescribed application form for a duplicate Passbook from the Head Post Office. 
  3. Step 3: Accurately fill out the application form, including all relevant account details. 
  4. Step 4: Pay the prescribed fee for the issuance of the duplicate Passbook. 
  1. Step 5: Submit the completed application form along with the required fee to the appropriate Head Office. 
  2. Step 6: The Head Post Office will process your application and verify the details provided. 
  3. Step 7: Once your application is processed and approved, the respective Head Post Office will issue a new duplicated Passbook to you. 

FAQs on Post Office Saving Schemes

  • Is it possible to transfer Monthly Income Scheme (MIS) interest to a Recurring Deposit (RD) account?

    No, there is no provision for direct transfer of MIS interest to an RD account. However, the MIS interest amount can be credited to a Savings (SB) account, and you can set up a Standing Instruction to transfer funds from the SB account to the RD account. To initiate this process, you need to submit a prescribed application form to your respective Post Office. 

  • How can I receive the maturity payment for my Post Office account?

    The mode of receiving maturity payment depends on the amount. For amounts below Rs.20,000, you can receive the payment in cash. For amounts of Rs.20,000 or more, you can choose to receive an Account Payee Cheque or have it transferred to your PO Savings Account. 

  • Why is nomination mandatory when opening a Post Office account?

    Nomination is mandatory to determine who will receive the account proceeds in case of the account holder's demise. It helps ensure a smooth transfer of funds to the intended individuals. 

  • Is Netbanking/Mobile Banking offered for Post Office Savings Accounts?

    Yes, Intra Operable Netbanking/Mobile Banking is available for Post Office Savings Account holders at CBS Post Offices, functioning within the POSB (DoP) network. To activate these services, customers need to submit a request form at their respective Post Office, and upon enabling the service, they will receive an activation code on their mobile within 48 hours for further usage. 

  • What is the process for transferring PPF/SSA/SCSS accounts between a Bank and a Post Office?

    To transfer these accounts between a Bank and a Post Office, submit the prescribed application form along with your passbook at the concerned Post Office. A fee of Rs.100 plus GST is applicable. 

  • How can I change the nomination for my Post Office account?

    You can change the nomination by submitting the prescribed application form at the relevant Post Office. There is a fee of Rs.50 plus GST associated with this service. 

  • Can I transfer my Post Office account to another CBS Post Office?

    Yes, you can transfer your Post Office account to another CBS (Core Banking Solutions) Post Office. It offers flexibility, especially if you relocate or need to manage multiple accounts. 

  • Is the interest earned from a 5-year Post Office Fixed Deposit tax-exempt?

    You can avail of income tax deductions under Section 80C of the Indian Income Tax Act, 1961, only for the deposit made in the 5-year fixed deposit account. If the interest earned on the FD account surpasses Rs.40,000 per financial year for regular customers, the Post Office may withhold taxes at the source. 

  • What is a Silent account, and how can it be reactivated?

    A Silent account is one in which no deposit or withdrawal activity has occurred for three consecutive Financial Years, and it is classified as a silent account. To reactivate it, the account holder needs to submit an application along with KYC documents. The respective Head Office (HO) will then undertake the reactivation process. 

  • What are the penalties for late payments on recurring deposits?

    For recurring deposit accounts, monthly deposits for accounts opened between the 1st and 15th of the month should be credited by the 15th of each month, while accounts opened between the 16th and the end of the month should have their monthly deposits credited by the last day of the month. Failure to credit the monthly instalment for a specific month will be counted as a default. Defaulted months can be credited subsequently, with a revival fee of Re. 1 for each defaulted month. A maximum of four defaults is allowed. 

  • How can I claim payment for a deceased account or certificate holder?

    You can claim payment through nomination by submitting a nomination claim form with the Death Certificate and KYC documents. Alternatively, if you have legal evidence, submit the Claim Form, legal evidence, Death Certificate, and KYC documents. For cases without nomination (up to 5 Lakh), submit the claim form, Death Certificate, Annexure-I, Annexure-II, Annexure III, and relevant KYC documents. 

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