Post Office Saving Schemes

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 Scheme Interest Rates

Serial NumberInvestment OptionRate of Interest (p.a.)
1Post Office Savings Account4% payable annually
2Post Office Recurring Deposit6.70% per annum compounded quarterly
3Post Office Monthly Income Scheme (MIS)7​.4​% per annum payable monthly
4Post Office Time Deposit (POTD)1yr:6.9%, 2yr:7.0%, 3yr:7.1% & 5yr:7.5%
5Kisan Vikas Patra (KVP)7.5% compounded annually
6Public Provident Fund (PPF)7.10% compounded annually
7Sukanya Samriddhi Yojana (SSY)8.2​​​% compounded annually
8National Savings Certificate (NSC)7.70% compounded annually
9Senior Citizen Savings Scheme (SCSS)8.20% payable quarterly
10Mahila 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.