For individuals seeking dependable avenues for financial growth, Post Office Saving Schemes present a compelling option. Guaranteed by the government of India, these schemes offer competitive interest rates and a diverse range of investment plans. Catering to various financial goals, from retirement planning to educational expenses, Post Office Saving Schemes provide a secure and accessible way to accumulate wealth.

Post Office Savings Schemes and Interest Rates

The interest rates for post office deposit schemes are set by the government of India. These rates are reviewed periodically and are subject to change from time to time. Here’s a quick look at the different savings plans offered by India Post and the current rate of interest for each of them. 

Post Office Saving Schemes

Interest Rate (p.a.)

Period of Investment

Minimum Investment

Post Office Savings Account




Post Office Recurring Deposit (RD)


5 years

₹100 per month

Post Office Time Deposit (TD) 1-5 year tenor

1 year - 6.9%

2 years - 7% 

3 years - 7.1% 

5 years - 7.5%

1-5 years


Post Office Monthly Income Scheme



5 years


Post Office Senior Citizens Savings Scheme (SCSS)


5 years


Kisan Vikas Patra (KVP)




Public Provident Fund (PPF)


15 years 


Sukanya Samriddhi Account (SSA)


21 years from the date of account opening


National Savings Certificate (NSC)


5 years 


Note: The interest rates mentioned above are valid as of March 2024 and are subject to change from time to time. 


Post Office Savings Account

  • This is very similar to the savings account that you hold with a bank. 

  • The Post Office Savings Account rate of interest is 4% per annum. This interest is fully taxable; however, TDS on the interest will not be deducted. 

  • There’s a minimum balance that you would have to maintain to keep your post office savings account active. In the case of an account with no chequebook facility, the minimum balance requirement is ₹50. On the other hand, for an account with the chequebook facility, the minimum balance requirement is ₹500. 

  • The interest that you earn from this post office scheme is eligible for deduction of up to ₹10,000 per financial year under section 80TTA of the Income Tax Act, 1961.

5-Year Post Office Recurring Deposit Account (RD)

  • The post office recurring deposit plan comes with a fixed tenor of 5 years, with the interest being compounded every quarter. 

  • You can invest as low as just ₹100 per month, making this one of the best postal saving schemes currently available.

  • A penalty of ₹1 for every ₹100 will be levied in the case of missed payments. 

  • Up to 50% of the balance in the RD account can be partially withdrawn after 1 year from the date of account opening. 

Post Office Time Deposit Account (TD)

  • The post office time deposit plan is very similar to a bank fixed deposit. The tenor ranges from 1 year to 5 years. 

  • The minimum amount of investment that you can make in this avenue is ₹1,000. There’s no cap on the maximum amount that you can invest.

  • The post office time deposit can be pledged as collateral to acquire loans from financial institutions. It is important to know the returns that you will receive when you invest. Therefore, you can make use of the fixed deposit interest rates calculator that is available on Bajaj Markets.

Post Office Monthly Income Scheme Account (MIS)

  •  The Monthly Income Scheme is one of the few post office investment schemes that are designed to offer a steady stream of income each month. 
  • The minimum amount that you can invest is ₹1,000, whereas the maximum amount is ₹4.5 Lakhs in the case of a single account and ₹9 Lakhs in the case of a joint account. 

  • The tenor of the scheme is 5 years and the account can be transferred from one post office branch to another. 

Senior Citizens Savings Scheme (SCSS)

  •  The post office senior citizens savings scheme is exclusively for individuals above 60 years of age. Retired individuals from the defence sector, aged above 50 years, can also invest in the scheme. 
  • The interest from this investment scheme is paid out every quarter. 

  • The minimum amount of investment is ₹1,000, whereas the maximum amount is ₹15 Lakhs. 

  • Premature withdrawal is possible. 

  • However, a small penalty will be levied based on when you withdraw. 

Public Provident Fund Account (PPF)

  • One of the best post office saving plans that individuals including minors can invest in, PPF has a low minimum investment amount of just ₹500. The maximum amount that you can invest in a year is ₹1.5 Lakhs. 

  • PPF has a lock-in period of 15 years, after which, the funds can either be withdrawn or the tenor be extended by blocks of 5 years. 

  • The interest earned on PPF investments is tax-free. To get to know how much interest your investment is likely to earn, you can use a PPF calculator

  • The contributions made to the account are eligible for deductions under section 80C of the Income Tax Act, 1961 to the tune of ₹1.5 Lakhs in a financial year. 

National Savings Certificate (NSC)

  • The National Savings Certificate is a post office scheme with a tenor of 5 years. 

  • The minimum amount of investment in the plan is ₹1,000, with no maximum limit on the investment. 

  • You can claim the amount invested in NSC as deductions under section 80C of the Income Tax Act, 1961 to the tune of ₹1.5 Lakhs in a financial year. 

  • The NSC can also be pledged as collateral to avail loans from financial institutions.

Kisan Vikas Patra (KVP)

  • Kisan Vikas Patra doesn’t have a fixed tenor. Instead, the deposit will mature on the date prescribed by the Ministry of Finance at the time of opening the account.

  • The amount invested in KVP will double in 123 months. The current KVP interest rate is 7.5% per annum. 

  • As with other post office savings schemes, the minimum amount of investment is ₹1,000, with no cap on the maximum amount of investment. 

Sukanya Samriddhi Accounts (SSA)

  • Designed for girl children below 10 years of age, the Sukanya Samriddhi Account offers a high rate of interest. 

  • The minimum amount of investment is ₹250, with the maximum limit set at ₹1.5 Lakhs per financial year. 

  • The amount received by the girl child upon maturity is completely tax-free and the contributions made to an SSA are eligible for section 80C deductions to the tune of ₹1.5 Lakhs per financial year.

How to Apply for a Savings Scheme in Post Office

The Post Office Saving Schemes are not available on Bajaj Markets. You can apply for a Savings Scheme at the Post Office through online and offline means. Here’s how it works:

Online Method

  1. Place a request for mobile and internet banking at the Post Office
  2. Go to the official e-banking website
  3. Use the activation code sent to you within 48 hours of account opening
  4. 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


  1. Visit your nearest post office branch

  2. Carry all the required documents with you

  3. Complete the form provided to you at the post office

  4. Submit the documents and the form

Documents Required for Post Office Saving Scheme Application

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.

Post Office v/s Other Saving Schemes

There are many points of difference between post office savings schemes and other savings schemes 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 postal savings schemes are guaranteed by the government of India and are therefore risk-free. However, other savings schemes may not be entirely risk-free and tend to carry a certain amount of risk. 

  • Many post office savings schemes offer tax benefits in the form of deductions under section 80C; the interest payments on some of them are also tax-free. In the case of other savings schemes, you will not only have to pay tax on the interest but also be ineligible for tax benefits. 

  • The Monthly Income Scheme (MIS) and Senior Citizens Savings Scheme (SCSS) are designed to offer you a steady source of income. Other savings schemes may not offer this feature. 

Taxability on Different Savings Schemes

Here’s the table with taxability details on different saving schemes by the Post Office:

Scheme Name


Public Provident Fund

Maximum deposit of ₹1.5 Lakhs, in a financial year, is exempted under Section 80C

Post Office Savings Account

Interest earned up to ₹10,000 p.a. is tax-free

Post Office Time Deposit Account

Investment under 5 Years TD qualifies for tax benefits u/s 80C (April 2007 onwards)

Post Office Monthly Income Savings Account

Tax benefit on maximum investment limit: ₹9 Lakhs for single account, ₹15 Lakhs for joint account

Senior Citizen Savings Scheme

Tax benefit on maximum investment limit ₹30 Lakhs (April 2007 onwards)

National Savings Certificate

Tax benefit under Section 80C:

  • Deposits

  • Interest on NSC that is reinvested under Section 80C

Sukanya Samriddhi Accounts

Tax rebate on maximum deposit of ₹1.5 Lakhs in a financial year

Disclaimer: Refer to the official website of Indian Post for Senior Citizen Savings Scheme details.

Advantages of Post Office Savings Account

There are many benefits that you get to enjoy by opening a savings account at a post office. Let’s take a quick glimpse into some of them. 

Simple Account Opening Process

Opening a savings account is very easy and shouldn’t take more than a few minutes. All that you need to do is submit a filled application form along with the necessary documents at the nearest post off Read Moreice branch. Read Less

Easy Accessibility

If you’ve subscribed to the internet banking feature, you can access your savings account online from the comfort of your own home.


Since all the deposits in a post office savings account are backed by the government of India, there’s virtually zero investment risk involved. 

Attractive Interest Rates

The interest rate offered by India Post on its savings account is very attractive and is far higher than most banking institutions.

Schedule of Fee

India Post has prescribed a schedule of fees that are applicable for all post office saving schemes. Check out the table below to get an idea of the fees and charges. 

Schedule of Charges 


Duplicate Passbook 


Deposit Receipt and Statement of Account


Passbook in lieu of mutilated or lost certificate

₹10 per registration 

Nomination change or cancellation 


Account Transfer Charges


Account Pledging Charges


Cheque Book Issue

Up to 10 cheque leaves in a year - Free 

More than 10 cheque leaves in a year - ₹2 per leaf

Dishonour of Cheque 


Note: All of the amounts prescribed in the above table are exclusive of GST. 


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of 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. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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Frequently Asked Questions

How can I invest in the Post Office Monthly Income scheme?

To invest in the Post Office Monthly Income Scheme (MIS), you would have to first open an MIS account. Once you’ve opened it, you can proceed to invest up to ₹4.5 Lakhs if it is a single account. In the case of a joint account, you can invest up to ₹9 Lakhs.

Can I withdraw money from any post office?

Yes. You can visit any of the post office branches in India to withdraw money from your account.

How much money can I withdraw from the post office account?

In the case of withdrawals at the branch, the maximum amount is capped at ₹10,000 per day. However, if you’re withdrawing cash from an ATM, the maximum amount of withdrawal is ₹25,000 per day.

Can I check my post office account online?

Yes. If you’re registered for internet banking, you can access your post office account online at any time.

Is post office investment safe and tax-free?

Yes. All post office savings schemes are backed by the government of India and are therefore free from any risk. As far as tax on interest is concerned, only a few schemes enjoy tax-free status. 

Is there any post office scheme for students?

There are no post office investment schemes exclusive for students. However, students, including minors, can invest in any of the various post office savings schemes except the Senior Citizens Savings Scheme (SCSS). 

Which post office scheme is suitable for 5 years?

There are many post office savings plans with a tenor of 5 years. The list includes Post Office Recurring Deposit, Post Office Time Deposit, Post Office Monthly Income Scheme (MIS), Senior Citizens Savings Scheme (SCSS) and National Savings Certificate (NSC).

Is it possible to transfer money from the post office to a bank account?

Yes. You can transfer funds from your post office account to your bank account. You can do that by physically visiting a post office near you or initiating an electronic transfer through your post office internet banking account.

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