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Post Office Saving Schemes- 9 Investment Schemes You Should Know!

Updated on June 13, 2024 , 412623 views

Post Office Small Savings Schemes are very popular in India as people prefer Investing money in instruments backed by the Government of India. These are the schemes that aim at providing secure investments with guaranteed returns. The post office schemes are launched to encourage the habit of savings amongst investors.


Post Office Saving Schemes include a bucket of products that offer risk-free returns and good interest rates. The rates of Small Saving Schemes are decided every quarter by the government. Take a look at all the 9 Post Office Saving Schemes offered by the Government of India.

Post Office Investment Schemes In India

1. Post Office Savings Account (POSA)

This Savings Account in a post office works like a Bank account that you open in any public sector bank. Post Office Savings Account offers an interest rate of 4 percent on an individual or joint account, and the rates keep changing after every June quarter. Like a normal bank account, POSA doesn’t come with a cheque book Facility. In this account, an interest amount up to INR 10,000 is exempted from tax under Section 80TTA. A minimum balance of INR 500 is to be maintained in the account

2. 5-Year Post Office Recurring Deposit Account (RD)

This account offers an interest rate of 6.7 percent p.a. (quarterly compounded). The Post Office RD account can be opened in the name of a minor, and a minor of 10 years & above age can open and operate the account. One withdrawal up to 50 percent of the balance is allowed after one year. There is no maximum deposit.

3. Post Office Time Deposit Account (TD)

In this account, the investment under 5 Years TD qualifies for the tax benefit under Section 80C of the income tax Act, 1961. There is no maximum deposit limit. Interest rate under Post Office Time Deposit Account is payable annually but calculated quarterly.

Period Interest Rate
1-year account 5.5%
2-year account 5.5%
3-year account 5.5%
5-year account 6.7%

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4. Post Office Monthly Income Scheme Account (MIS)

In Post Office MIS an individual invests a particular amount and gets an assured monthly Income in the form of interest. The interest which is payable on a monthly Basis (starting from the date of deposit) is deposited in your account. The current interest rate on the Post Office MIS Account is 7.2 percent p.a. (payable monthly). There are no tax benefits. The maturity period of the Post Office Monthly Income Scheme is of 5 years.

The account can be prematurely closed after a year. However, 2 percent of the Deduction amount will be charged if the account is closed between 1 year to 3 years. And after three years, 1 percent will be deducted.

Scheme Interest Rate (p.a) Minimum Deposit Investment Period
Post Office Savings Account 4% INR 20 NA
5-Year Post Office Recurring deposit Account 6.7% INR 10/ Month 1- 10 Years
Post Office Time Deposit Account Range as per Tenure INR 200 1 Year
Post Office Monthly Income Scheme Account 7.2% INR 1500 5 Years
5- Year Senior Citizen Savings Scheme 8.2% INR 1000 5 Years
15-Year Public Provident Fund Account 7.1% INR 500 15 Years
National Savings Certificates 7.7% INR 100 5 or 10 Years
Kisan Vikas Patra 7.5% INR 1000 9 Years 5 Months
Sukanya Samriddhi Yojana Scheme 8.2% INR 1000 21 Years

5. Senior Citizen Savings Scheme (SCSS)

SCSS is a special scheme dedicated to the senior citizens of India. This scheme is currently fetching an interest rate of 8.2 percent p.a. An individual who is of 60+ years can open the scheme. The maturity period is 5 years and the maximum amount deposited should not exceed INR 15 lakh. The interest rate on the senior citizens' scheme is paid quarterly. The investment amount in this scheme will be deducted under section 80C, and the interest earned is taxable & subject to TDS as well.

6. 15-year Public Provident Fund Account (PPF)

Public Provident Fund is one of the popular savings schemes for retirement savings. Here, the investors get the benefit of EEE - exempt, exempt, exempt - status in terms of income tax treatment. Contribution up to INR 1.5 lakh in a financial year is eligible for tax deductions under Sec 80C of the Income Tax Act. Moreover, investors get a loan facility and also can make a partial withdrawal. Currently, the interest rates offered for PPF account is 7.1 percent p.a. The account comes with a maturity period of 15 years.

7. National Savings Certificates (NSC)

This scheme is launched by the Government of India to promote the habit of savings amongst the Indians. The minimum investment amount is INR 100 and there is no maximum limit to invest. The current interest rate of NSC is 7.7 percent p.a. One can claim tax deduction of INR 1.5 lakh under Section 80C of the Income Tax Act. Only residents of India are eligible to invest in NSC scheme.

8. Kisan Vikas Patra (KVP)

Kisan Vikas Patra facilitates people to invest in a long-term savings plan. The scheme has been recently re-introduced in 2014 by the government of India. The KVP certificate is offered in multiple denominations that gives flexibility to the customers. The denominations vary from INR 100 to a maximum of INR 50,000. The current interest rate offered is 7.5 percent p.a.(compounded annually). There is no maximum limit for investment in this scheme.

9. Sukanya Samriddhi Yojana Scheme (SSY)

Sukanya Samriddhi Yojana was launched with the aim to encourage parents to secure the future for their daughters. PM Narendra Modi launched the scheme in the year 2015 under the ‘Beti Bachao, Beti Padhao’ campaign, which is targeted towards the minor girl child.

The SSY account can be opened in the name of the girl from her birth to any time before she turns 10 years old. The current interest rate offered is 7.6 percent p.a. The minimum investment amount is INR 1,000 to a maximum of INR 1.5 lakh per year. SSY scheme is operative for 21 years from the date of opening.


1. Why invest in Post Office schemes?

A- Post Office schemes are backed by the Government of India, which guarantees return on your investment. Moreover, these schemes are exempted from taxation under Section 80C up to Rs. 1,50,000.

2. Is there any special scheme for senior citizens?

A- Yes, the SCSS offered by the Post Office is a specialized scheme for Senior Citizens of India. Anyone above the age of 60 can open an account under this scheme in the Post Office. The interest in this scheme is paid quarterly.

3. Does the Post Office offer the girl child scheme?

A- Yes, the Sukanya Samriddhi Yojana Scheme is a specialized scheme for the girl child offered by the Post Office. It comes under the ‘Beti Bachao, Beti Padhao’ campaign launched by Prime Minister Narendra Modi in 2015.

4. Can NRIs invest in POSS?

A- No, NRIs cannot invest in POSS. Also, they cannot invest in National Savings Certificate, Kisan Vikas Patra, Provident Funds, or any other time deposits offered by the Post Office.

5. Who formulates and introduces the schemes of National Savings?

A- The Ministry of Finance formulates the schemes for National Savings. But the ministry does so only after consultation with experts and committees of the National Savings Institute.

6. Do Post Office Saving Schemes offer tax benefits?

A- The Public Provident Fund has the benefit of EEE in terms of tax exemption. Contribution of Rs. 1.5 lakh annually to the PPF account will make you eligible for tax deduction under section 80C of the Income Tax Act.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Krishna Kalyan Thombare, posted on 6 Oct 21 11:27 AM

Khupacha chan

Menaka, posted on 6 Jul 21 3:56 PM

Nice information for this scheme in this post office

Anandkumar, posted on 22 Sep 20 7:55 PM

Nice work good information

Santosh, posted on 6 Jul 20 12:55 PM

Inqurie for small and short terms post office police

Gopal , posted on 28 May 20 4:39 PM

Let's see if can invest in future

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