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.
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 |
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 |
5 Years | 7.7% | Yes | No | |
Public Provident Fund (PPF) | 15 Years | 7.1% | Yes | No |
21 Years | 8.2% | Yes | No | |
5 Years | 8.2% | Yes | Yes |
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.
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.
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:
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.
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.
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
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
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.
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.
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
Opening an account at the post office involves a straightforward process, and here are the steps and requirements in detail:
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:
Follow the instructions below to obtain a duplicate Passbook from the Post office:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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