Types of Post Office Savings Schemes

Savings Account

A Post Office Savings Account is a safe way to save money through India's post offices. It gives 4% yearly interest (calculated every month) and requires only ₹20 to open. You need to keep at least ₹500 in the account if you want to use cheque services. You won’t pay tax on yearly interest up to ₹10,000. Adults, teens over 10, or guardians of kids can open these accounts. Aadhaar and PAN are required for account opening/management.

Recurring Deposit (RD)

A Post Office Recurring Deposit (RD) allows you to save small amounts every month for 5 years. You start by putting in at least ₹100 each month (like ₹110, ₹200, etc.), and the government pays 6.7% yearly interest, calculated every three months. You can pay in cash, cheque, or online using the Post Office app. If you pay 6 months’ deposits in advance, you get a ₹10 discount for every ₹100 monthly deposit. If you miss payments, there’s a ₹1 penalty per ₹100 due, and the account freezes after five missed months unless you restart it. You can withdraw money early after 3 years, and you can check your final savings using online tools.

Time Deposit (TD)

The Post Office Time Deposit (POTD) is a secure fixed deposit offered by India Post, with terms of 1, 2, 3, or 5 years. Anyone aged 10 or older can open an account alone, with someone else, or through a guardian for kids. You need at least ₹1,000 to start (and add more in ₹100 chunks), with no maximum limit. It offers guaranteed interest rates, often higher than bank FDs. You can withdraw money early after 6 months, but you’ll get less interest. The 5-year plan also gives tax benefits under Section 80C. Accounts can be moved between post offices and will renew automatically when the term ends.

Monthly Income Scheme (MIS)

The Post Office Monthly Income Scheme (POMIS) allows you to save money safely with the government. You can invest between ₹1,000 and ₹9 lakh (or up to ₹15 lakh for joint accounts with up to three people). Your money is locked for 5 years, and you get monthly interest payments (currently 7.4% yearly). You get your principal amount back after 5 years. The account can be moved between post offices, and you can add a nominee. While no tax is deducted from your interest, you must still pay taxes on it.

Senior Citizen Savings Scheme (SCSS)

The Post Office Senior Citizen Savings Scheme (SCSS) is a safe investment plan for older adults. People aged 60 or above can open this account. It offers 8.2% yearly interest (as of April 2025), paid every three months. You can invest up to ₹30 lakh for 5 years and extend it for 3 more years after it matures. Deposits qualify for tax savings under Section 80C, and withdrawals are now tax-free (from August 2024). You can open the account alone or with your spouse at a post office or bank. It’s a reliable choice for retirees who want a steady, risk-free income.

Public Provident Fund (PPF)

The government-backed Public Provident Fund (PPF) offers a secure, long-term savings option with guaranteed returns and tax benefits under Section 80C. You can open this account at any post office, deposit between ₹500 and ₹1.5 lakh yearly, and earn interest of 7.1 % yearly. The account lasts 15 years and can be extended after maturity. The interest, withdrawals, and final amount are all tax-free. While it’s open to all resident Indians (not NRIs), post offices make it especially useful for people in smaller towns and villages. It’s a low-risk way to save for goals like retirement or future needs.

National Savings Certificate (NSC)

The National Savings Certificate (NSC) is a safe savings plan offered by Indian post offices. It’s perfect for people who want a low-risk way to save money with guaranteed returns. You invest for 5 years, earn interest (currently 7.7% per year), and can start with as little as ₹1,000. The government backs it, so your money stays secure. You also get tax benefits on investments up to ₹1.5 lakh under Section 80C. While the interest you earn is taxable, it’s easy to open an NSC account at any post office with basic ID proof. You can even transfer it to another post office if you move.

Kisan Vikas Patra (KVP)

The Kisan Vikas Patra (KVP) is a safe savings plan run by India Post. It helps people save money over time with guaranteed returns. Right now, it offers 7.5% yearly interest, and your money doubles if kept for 9 years and 7 months. You can start with as little as ₹1,000 (and add more in ₹1,000 chunks) with no maximum limit. While it was first made for farmers, anyone—adults, kids (through parents), or groups—can invest. For amounts over ₹50,000, you need to share your PAN card. You can take out your money early after 2.5 years in special cases like emergencies or legal needs. Although it doesn’t offer tax savings, it’s a good choice for those who want steady, low-risk growth. You can buy it at post offices or banks, transfer it to others, and get your money back with the right paperwork.

Sukanya Samriddhi Yojana (SSY)

The Post Office Sukanya Samriddhi Yojana (SSY) is a savings plan by the Indian government to help families save for a girl child’s future. Parents can open an account for a girl under 10 years old. They need to deposit at least ₹250 yearly, up to ₹1.5 lakhs per year and earn 8.2% interest yearly. The money grows tax-free and can be used for her education or marriage. After age 18, half the money can be taken out for studies, and the full amount can be withdrawn when she turns 21. The scheme offers tax savings on deposits and tax-free interest. Accounts can be moved to any post office in India and handed over to the girl when she becomes an adult.