Types of Post Office Savings Schemes

Savings Account

A Post Office Savings Account is a secure and accessible way to save money through India’s postal network. It offers an interest rate of 4% per annum, calculated monthly, and requires a minimum deposit of ₹20 to open the account. To avail cheque services, account holders must maintain a minimum balance of ₹500. Interest earned up to ₹10,000 annually is exempt from tax. These accounts can be opened by adults, teenagers aged 10 and above, or guardians on behalf of minors. For account opening and management, Aadhaar and PAN cards are mandatory. The account provides a low-cost, reliable savings option with easy access across post offices nationwide.

Recurring Deposit (RD)

The Post Office Recurring Deposit (RD) scheme allows you to save small amounts each month over a fixed period of five years, starting with a minimum monthly deposit of ₹100. The government offers an attractive interest rate of 6.7% per annum, compounded quarterly, helping your savings grow steadily. Deposits can be made conveniently through cash, cheque, or online via the Post Office app. If you choose to pay six months’ installments in advance, you receive a ₹10 discount for every ₹100 deposited monthly. However, missing payments incurs a penalty of ₹1 per ₹100 due, and if five consecutive payments are missed, the account is frozen unless reactivated. Early withdrawal is permitted after three years under certain conditions. This scheme is accessible to adults, minors aged 10 and above, and guardians acting on behalf of minors.

Time Deposit (TD)

The Post Office Time Deposit (POTD) is a secure fixed deposit scheme from India Post, available for terms of 1, 2, 3, or 5 years. It can be opened by anyone aged 10 or older, either individually, jointly, or by a guardian on behalf of a minor. The minimum deposit required is ₹1,000, with additional deposits allowed in multiples of ₹100 and no upper limit. POTD offers guaranteed interest rates that are often more attractive than those provided by many bank fixed deposits. Early withdrawal is permitted after six months, though the interest paid will be lower in such cases. The 5-year deposit option also provides tax benefits under Section 80C, making it appealing for long-term savers. Accounts can be transferred between post offices and are automatically renewed upon maturity, offering both flexibility and convenience

Monthly Income Scheme (MIS)

The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan that provides a secure way to invest money and receive regular monthly income. Investors can deposit between ₹1,000 and ₹9 lakh in a single account, or up to ₹15 lakh in a joint account held by up to three people. The investment is locked in for five years, during which monthly interest payments are made at an annual rate of 7.4%, offering a steady and predictable income stream. At maturity, the principal amount is returned to the investor. POMIS accounts can be easily transferred between post offices across India, and account holders can nominate beneficiaries. Although no tax is deducted at source on the interest earned, investors must pay taxes on this income according to their applicable tax bracket. This scheme is ideal for conservative investors and retirees seeking low-risk, reliable returns with capital protection.

Senior Citizen Savings Scheme (SCSS)

The Post Office Senior Citizen Savings Scheme (SCSS) is a secure investment option specifically designed for individuals aged 60 and above. It currently offers an attractive annual interest rate of 8.2% (as of April 2025), with interest paid out every quarter. You can invest up to ₹30 lakh for a tenure of five years, with the option to extend the account for an additional three years upon maturity. Deposits made under SCSS are eligible for tax benefits under Section 80C, and, starting from August 2024, withdrawals from the scheme are tax-free. Accounts can be opened individually or jointly with a spouse at any post office or participating bank. SCSS is a reliable choice for retirees seeking a steady, risk-free income stream

Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a government-backed, long-term savings scheme that provides guaranteed returns along with attractive tax benefits under Section 80C. It can be opened at any post office, making it particularly accessible for individuals in smaller towns and villages. Account holders can deposit between ₹500 and ₹1.5 lakh annually, earning an interest rate of 7.1% per annum, compounded yearly. The PPF account has a tenure of 15 years, with the option to extend it in five-year increments after maturity. One of the key advantages of PPF is its tax efficiency, as the principal amount, interest earned, and maturity proceeds are all completely tax-free. This scheme is available to all resident Indians, excluding NRIs, and offers a low-risk, secure way to save for long-term goals such as retirement or future financial needs.

National Savings Certificate (NSC)

The National Savings Certificate (NSC) is a secure savings scheme offered by Indian post offices, ideal for those seeking a low-risk investment with guaranteed returns. It has a fixed tenure of five years and currently offers an interest rate of 7.7% per annum, compounded annually and payable at maturity. You can begin investing with a minimum amount of ₹1,000, with no upper limit on deposits. The scheme is available to individuals, joint holders (up to three adults), and guardians on behalf of minors, and accounts can be easily opened at any post office with basic ID proof. Investments up to ₹1.5 lakh per year qualify for tax deductions under Section 80C, although the interest earned is taxable. Additionally, NSC certificates can be transferred to another post office if you relocate, providing added convenience. Overall, NSC offers a safe, accessible way to save money with government backing and tax benefits.

Kisan Vikas Patra (KVP)

The Kisan Vikas Patra (KVP) is a government-backed savings scheme offered by India Post, designed to provide safe and steady returns over time. Currently, it offers an annual interest rate of 7.5%, with the invested amount doubling if held for 9 years and 7 months. You can start investing with as little as ₹1,000, and there is no upper limit, with additional investments allowed in multiples of ₹1,000. Although originally intended for farmers, KVP is now open to all individuals, including adults, minors (through guardians), and joint holders. For investments above ₹50,000, a PAN card is required. Premature withdrawals are permitted after two and a half years in certain situations, such as emergencies or legal requirements. While KVP does not provide tax benefits, it remains a reliable option for those seeking low-risk, guaranteed growth. The certificates can be purchased at post offices or banks, transferred to others, and redeemed with proper documentation

Sukanya Samriddhi Yojana (SSY)

The Post Office Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme aimed at helping families secure the future of a girl child. Parents or guardians can open an account for a girl under 10 years old at any post office or authorized bank. The scheme requires a minimum annual deposit of ₹250, with a maximum limit of ₹1.5 lakh per year, and offers an attractive interest rate of 8.2% per annum, compounded annually. The account matures after 21 years or upon the girl’s marriage after the age of 18, whichever occurs first. SSY provides significant tax benefits, including deductions on deposits under Section 80C and tax-free interest and maturity proceeds. After the girl turns 18, up to 50% of the balance can be withdrawn for educational purposes, while the full amount becomes accessible when she reaches 21 or marries after 18. The account is transferable between post offices nationwide and is handed over to the girl once she becomes an adult. Overall, SSY offers a secure, high-return, and tax-efficient way to save for a girl child’s education and marriage expenses.