Post Office Saving Schemes 2024
Founded on 1st October 1854, Indian Post office is one of the largest and oldest organizations in India which is a government-operated postal system. Post offices in India offer their services to the people through a vast network of over 1.55 lakh post offices and around 5.70 lakh employees.
The main service area of India Post initially was to deliver mail (post). However, later it also started providing many financial services, such as
- Banking: Savings Account, RD
- Money Order: Instant & Electronic
- Investment: Small savings schemes
- Insurance: Life insurance (Postal Life Insurance and Rural Postal Life Insurance)
Post Office Saving Schemes Interest Rates
| Serial Number | Investment Option | Rate of Interest (p.a.) |
|---|---|---|
| 1 | Post Office Savings Account | 4% payable annually |
| 2 | Post Office Recurring Deposit | 6.70% per annum compounded quarterly |
| 3 | Post Office Monthly Income Scheme (MIS) | 7.4% per annum payable monthly |
| 4 | Post Office Time Deposit (POTD) | 1yr:6.9%, 2yr:7.0%, 3yr:7.1% & 5yr:7.5% |
| 5 | Kisan Vikas Patra (KVP) | 7.5% compounded annually |
| 6 | Public Provident Fund (PPF) | 7.10% compounded annually |
| 7 | Sukanya Samriddhi Yojana (SSY) | 8.2% compounded annually |
| 8 | National Savings Certificate (NSC) | 7.70% compounded annually |
| 9 | Senior Citizen Savings Scheme (SCSS) | 8.20% payable quarterly |
| 10 | Mahila Samman Savings Certificate (MSSC) | 7.50% compounded quarterly |
There are a lot of post office saving schemes offered by post office in India to the people having variety of investment needs. This set of financial instruments encourage saving and provide financial security to the people of India.
As these Post Office schemes are backed by the government, they are safe and reliable investment avenues for the individuals.
Post Office Saving Schemes
Post Office Savings Account: It is a basic savings account with minimal requirements to provide a safe place to park short term money.
Post Office Recurring Deposit: It serves as a perfect way to save money systematically and regularly for a certain period of time.
Post Office Monthly Income Scheme (POMIS): It is a fixed income scheme through monthly payouts. This is suitable for the people willing to have a regular income every month.
Post Office Time Deposit (POTD): It is a reliable investment option for providing individuals with a secure avenue for fixed term savings.Investors can choose from multiple tenure options ranging from 1 year to 5 years.
Kisan Vikas Patra (KVP): A small savings scheme which gives a guarantee to double the investment in a predefined period of time.
Public Provident Fund (PPF): It is a long-term savings scheme having a lock-in period of 15 years that offers not only tax benefits but also attractive interest rate.
Sukanya Samriddhi Yojana (SSY): This is a specific scheme designed for the girl child to provide financial betterment. It offers long-term financial security along with tax benefits. It lets the parents to build capital for their girl children for their higher education or marriage expenses.
National Savings Certificate (NSC): It is a fixed deposit scheme having a lock-in period. It offers tax benefits and competitive interest rates as well.
Senior Citizens Savings Scheme (SCSS): It is offered to Indian residents aged over 60 years and provides regular income and matures after 5 years from the date of account opening.
The interest rate in a given quarter of investment made will be locked-in for the entire tenure of the scheme in case of Post Office Time Deposits, Post Office Recurring Deposits, Post Office Monthly Income Schemes, National Savings Certificates (NSC) and Kisan Vikas Patra (KVP).
In case of investment made under Public Provident Fund (PPF) and Sukanya Samriddhi Yojana, the revised rate will be applicable in the concerned quarter, which may keep changing every quarter as decided by the government.
Mahila Samman Savings Certificate (MSSC): Mahila Samman Savings Certificate scheme has been introduced in order to commemorate the 'Azadi ka Amrit Mahotsav'.
It is a small savings scheme for women and girls. Minimum deposit amount in the scheme is Rs.1000 and maximum amount is Rs.2 lakh.
Is a one-time scheme available for 2 years i.e. from April 2023 to March 2025. Interest under the scheme is compounded quarterly and is locked-in for the entire tenure of the scheme and will be paid at the time of closure of account.
Post Office Saving Schemes Details
| Scheme Name | Minimum Investment Amount | Maximum Investment Amount | Frequency of Deposits | Maturity | Who Can Invest |
|---|---|---|---|---|---|
| Post Office Savings Account | Rs.500 | No Limit | As desired | None | Individuals, Minors, Joint Accounts |
| Recurring Deposit Account (RD) | Rs.100 per month | No Limit | Monthly | 5 years | Individuals, Minors, Joint Accounts |
| Monthly Income Scheme (MIS) | Rs.1000 | Rs.9 lakh (single), Rs.15 lakh (joint) | Monthly | 5 years | Individuals, Minors, Joint Accounts |
| Post Office Time Deposit Account (TD) | Rs.1000 | No Limit | Lump sum | 1, 2, 3 or 5 years | Individuals, Minors, Joint Accounts |
| Kisan Vikas Patra (KVP) | Rs.1000 | No Limit | Lump sum | 115 months | Individuals, Minors, Joint Accounts |
| Public Provident Fund (PPF) | Rs.500 per financial year | Rs.1.5 lakh financial year | Yearly, Quarterly, Monthly | 15 years | Individuals (Resident Indians), Guardians for Minors |
| Sukanya Samriddhi Yojana (SSY) | Rs.250 per year | Rs.1.5 lakh per year | Yearly, Quarterly, Monthly | Girl attaining 21 years | Parents/ Guardians for Girl Child (up to age 10) |
| National Savings Certificates (NSC) | Rs.1000 | No Limit | Lump sum | 5 years | Individuals, Minors, Joint Accounts |
| Senior Citizens Savings Scheme (SCSS) | Rs.1000 | Rs.30 lakh | Lump sum | 5 years | Individuals aged 60 and above, retired persons |
| Mahila Samman Savings Certificate (MSSC) | Rs.1000 | Rs.2 lakh | Lump sum | 2 years | Women and Girls |
Government Backing and Risk Factors
Investing in Post Office Saving Schemes is considered one of the safest investment options because these post office schemes are backed by government thus reducing investment risks and offer risk-free investment returns. Hence, investment in these post office schemes is also preferred by many conservative investors. Different types of post office schemes are designed for different types of investors so that the investors from every corner of the country and of varied economic classes can easily be covered by these schemes. These schemes are very easy to invest with minimal documentation. On good point to note that the minimum investment amount under Post Office Saving Schemes is very low and affordable which lets investors even from lower economic strata invest in these schemes.
You will see that many of the post office schemes are for the long-term offering fixed returns with minimal risk. These post office saving schemes have been very popular and attractive investment options for millions of Indians for decades and so you can also consider investing in these schemes based on your investment motive and financial goals.
These schemes offer attractive interest rates ranging from 4% to 9% so that your money grows over time which in turn help individuals create a handsome and sizeable corpus to meet various financial goals. The Ministry of Finance updates the interest rates of the post office saving schemes mostly in every 3 months. Some of the schemes can also be considered for retirement benefits and generating a regular income.
Many of these schemes provide tax benefits under section 80C of the Income Tax Act. Some of the post office scheme such as Public Provident Fund and Sukanya Samriddhi Yojana even exempt the interest earned from taxation.
Ways to Invest in Post Office Saving Schemes
You can open the Post Office Saving Scheme account very easily in any of the following ways.
| Sr. No. | Ways to Invest | How to Invest |
|---|---|---|
| 1 | Online through Internet Banking | Activate Internet banking, login and invest |
| 2 | Through Mobile Banking App | Install 'India Post Mobile Banking App', login and invest |
| 3 | By Visiting Any Post Office | Go to the post office, fill up the form and deposit amount |
| 4 | By Visiting Any Bank Branch | Visit the bank branch, fill up the form and deposit amount |
Important to know that post office scheme accounts can easily be transferred from one post office branch to another, in case the investor shifts to any other location in India, thanks to a wide network of Post Office.
Interest Rates History of Post Office Saving Schemes
| Scheme | Jan 2023-Mar 2023 | Apr 2023-Jun 2023 | Jul 2023-Sep 2023 | Oct 2023-Dec 2023 | Jan 2024-Mar 2024 | Apr 2024-Jun 2024 | Jul 2024-Sep 2024 |
|---|---|---|---|---|---|---|---|
| PO Recurring Deposit | 5.80% | 6.20% | 6.50% | 6.70% | 6.70% | 6.70% | 6.70% |
| PO Time Deposit 1 year | 6.60% | 6.80% | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% |
| PO Time Deposit 2 years | 6.80% | 6.90% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| PO Time Deposit 3 years | 6.90% | 7.00% | 7.00% | 7.00% | 7.10% | 7.10% | 7.10% |
| PO Time Deposit 5 years | 7.00% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
| PO Monthly Income Scheme | 7.10% | 7.40% | 7.40% | 7.40% | 7.40% | 7.40% | 7.40% |
| Public Provident Fund | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% |
| Sukanya Smriddhi Yojana | 7.60% | 8.00% | 8.00% | 8.00% | 8.20% | 8.20% | 8.20% |
| Senior Citizen Saving Scheme | 8.00% | 8.20% | 8.20% | 8.20% | 8.20% | 8.20% | 8.20% |
| National Saving certificate | 7.00% | 7.70% | 7.70% | 7.70% | 7.70% | 7.70% | 7.70% |
| Kisan Vikas Patra | 7.20% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
Other Services of Post Office
Mail Service: People can send letter, inland letter, post card, parcel, registered letter, etc. through post office. The sender need to send the letter in an envelope mentioning the address of the addressee with PIN code and drop it in the letter box. Post Office collects, accepts, orders, processes and delivers these different articles to the address mentioned by the sender. It is necessary to mention the correct address of the addressee by the sender so that it can be delivered to the right person with ease.
Money Order: Money order is an order issued by the Post Office for the payment of a sum of money to the person whose name the money order is sent. Primary advantage of sending money to someone through money order is that the money is delivered at the house or his place of stay. For sending money order, the remitter has to buy a money order form at the counter of the post office.
Sale of Postage Stamps: Postage Stamp is a small adhesive piece of paper of specified value issued by a Post Office which is required to be affixed to a letter or parcel to indicate the amount of postage paid. Postage stamps are proof of payment for delivery. Post offices sell postage stamps of different values. There is a fee for the postal service to carry your letter from one location to another. In order to pay ths fee, one needs to purchase postage stamps of its value and affix on the envelope. One needs to have the proper value of stamps to cover the cost of the item being sent.
Jansuraksha Scheme: Pradhan Mantri JeevanJyoti Bima Yojna(PMJJBY), Pradhan Mantri Suraksha Bima Yojna(PMSBY) and Atal Pension Yojna(APY) are also offered by the post offices. You can buy any of these scheme from the post office.
Mutual Funds Distribution: Post Office has been a distributor of financial services like Mutual Funds and Securities since long. As the post office has a wide network of over 1,50,000 branches across India and to take advantage of such a large network and post office personnel skills, Department of Posts had started distribution of mutual funds and bonds.
NPS Distribution: National Pension System (NPS) is a voluntary savings plan to accumulate corpus for retirement purpose. It lets people contribute money to build up their savings for the future which will result in a monthly pension. NPS aims to provide a reliable way for every citizen of India to have enough income after they retire.