Post Office Financial Services

Post Office Savings Account

Post Office Savings Bank account is the oldest and largest banking system which is a secure and risk-free product that offers attractive interest to the customers. PO Savings Accounts are the most popular type of bank accounts meant for saving of your amount and getting interest on it. You have the flexibility of deposit your fund to or withdraw your fund from the account based on your requirement. Presently w.e.f. 1st July 2024, the rate of interest on PO savings account is 4.00% p.a. It can be opened with a minimum amount of Rs.20 for a non-cheque facility and with an amount of Rs.500 for a cheque facility, Post Office Saving Schemes 2019.

Minimum balance to be maintained in a non-cheque facility account is Rs.50 and in a cheque facility account is Rs.500. Interest earned is Tax Free up to Rs.10,000 per financial year from financial year 2012-13.

Post Office Time Deposit (TD)

PO Time Deposit Accounts are those accounts in which a fixed sum of money is deposited for a specified time usually for a period of 1 year, 2 years, 3 years or 5 years. PO TD account can be opened by any individual by cash/ cheque. In case of a cheque the date of realization of cheque will be date of opening of account. Joint account can be opened by two adults. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account. Minimum Rs.200 and in multiple of Rs 200 thereof can be invested in it. There is no maximum limit of investment in PO TD. Find below Post Office Fixed Deposit Interest Rates 2019 or Post office deposit schemes' interest rates.

The investment under 5 Years PO Time Deposit (TD) qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007. Interest is calculated quarterly but payable annually. Table for Post Office FD scheme interest rates from 01.07.2024 is given below:

TenureInterest Rate
1 Year6.90%
2 Years7.0​0%
3 Years7.10​%
5 Years7.50​%

Post Office Recurring Deposit (RD)

Recurring Deposit Account is opened by the persons who wish to invest an average amount on a regular basis. These are also popularly known as RD accounts. This account is useful for those persons who do not want to invest a large amount at single instance. It can be opened by any individual by cash/ cheque. In case of a cheque the date of deposit shall be date of presentation of cheque. Joint account can be opened by two adults. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.

One withdrawal up to 50% of the balance allowed after 1 year. It may be repaid in one lumpsum along with interest at the prescribed rate at any time during the currency of the account. From 01.07.2024, the interest rate offered on NSC is 6.70% per annum compounded quarterly which means that the investment of Rs.100 per month grows to Rs.7136.58 after 5 years.

Post Office Monthly Income Scheme (MIS)

Post Office MIS account can be opened by any individual by cash/ cheque. In case of a cheque the date of realization of cheque will be date of opening of account. Joint account can be opened by two or three adults. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.

Maximum investment limit is Rs.9 lakhs in single account and Rs.15 lakhs in joint account. It has a maturity period of 5 years. It can be encashed prematurely after 1 year. If encash after 1 year but before 3 years, then there will be a deduction of 2% of the deposit and if encashed after 3 years but before maturity, then the discount will be of 1% of the deposit. From 01.07.2024, the interest rate offered on MIS is 7.40% p.a. compounded annually payable monthly. Monthly Interest Rs.62 will be given for deposit of Rs.10,000.

Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) is one of the safest investment options available to the senior citizens that provides fixed regular income with tax saving. It is a Government of India product. An individual of the Age of 60 years or more may open the account. Account can be opened by cash for the amount below Rs. 1 lakh and for Rs.1 Lakh and above by cheque only. Minimum Investment is Rs.1,000 and in multiples of Rs.1,000 thereafter. Maximum Investment is restricted to Rs.30 lakhs. There shall be only one deposit in the account. Interest is payable at the end of each calendar quarter e.g. 31st March, 30th June, 30th September and 31st December. It has a tenure of 5 years but can be extended for a further period of 3 years. A deduction up to Rs 1.50 lakhs is available under Section 80C of the Income Tax Act. The interest rate offered on SCSS is 8.20% p.a. for the period from 1st July 2024

Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) was launched under the government's 'Beti Bachao Beti Padhao' campaign in 2014. It is a deposit scheme offering guaranteed returns along with income tax benefit under section 80 C of the Income Tax Act, 1961. It is a deposit scheme for Higher Education and Marriage of Girl Child. Any parent, natural or legal guardian of the girl can invest in it. Account can be opened anytime, from the birth of a girl till she attains age of 10 years. Minimum Investment is Rs.1,000 in a Financial Year and maximum investment is Rs.1.50 lakhs in a Financial Year. There is no limit on number of deposits either in a month or in a financial year. Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after account holder's attaining age of 18 years. This account can be closed after 21 years. Normal premature closure will be allowed after completion of 18 years /provided that girl is married. The interest rate offered on SSY is 8.20% compounded annually w.e.f. 01.07.2024.

15-Years Public Provident Fund Account (PPF)

Public Provident Fund Account (PPF) is very popular investment instrument among all the money-saving avenues available for investment due to its flexible nature. The balance lying in PPF account is not subject to attachment under any order or decree of court. In the case of insolvency, the balance of a PPF account cannot be clubbed to an investor's liabilities. As a result, this fund should be used as a last resort to guarantee future stability for the lender.

PPF offers you better returns than bank FDs. PPF investments are guaranteed, risk-free and regulated by the Indian government which makes them safer than other investment avenues.

Any individual can open PPF account. Joint account cannot be opened. However, you can appoint nominee in your account. Minimum Rs.500 and maximum Rs.1,50,000 can be invested in PPF account in a financial year. Deposits can be made in lump-sum or in 12 installments. Deposit has to be made at least once a year during the entire tenure.

Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on. Premature closure is not allowed before 15 years. Deposits qualify for deduction from income under Sec. 80C of the Income Tax Act. Interest is completely tax-free. This makes the whole fund exempt-exempt-exempt.

Partial withdrawal is permissible every year from 7th financial year from the year of opening account. Loan facility is also available from the third to the sixth year after the account is opened. The investor may avail a loan against his PPF account. The interest rates on PPF are slightly higher than bank fixed deposits. The interest rate offered on PPF is 7.10% p.a. compounded annually w.e.f. 01.07.2024.

Historical Interest Rates of PPF

Financial YearPPF Interest Rate History (p.a)
1 April 2020 – 30 June 20247.10%
1 July 2019 - 31 March 20207.90%
1 October 2018 - 30 June 20198.00%
1 January 2018 - 30 September 20187.60%
1 July 2017 - 31 December 20177.80%
1 April 2017 - 30 June 20177.90%
1 October 2016 - 31 March 20178.00%
1 April 2016 - 30 September 20168.10%

5-Years National Savings Certificates (NSC)

A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or by a minor. Minimum of Rs.100 and in multiples of Rs.100 can in invested. There is no maximum limit on investment. Investment in NSC qualifies for income tax rebate under Section 80C of the Income Tax Act. From 01.07.2024, the interest rate offered on NSC is 7.70% per annum compounded annually but payable at maturity which means that the investment of Rs.10,000 grows to Rs.14,490 after 5 years.

NSC Interest Rate Historical Data

Financial Year April-JuneJuly-SeptemberOctober-DecemberJanuary-March
2016-20178.10%8.10%8.00%8.00%
2017-20187.90%7.80%7.80%7.60%
2018-20197.60%7.60%8.00%8.00%
2019-20208.00%7.90%7.90%7.90%
2020-20216.80%6.80%6.80%6.80%
2021-20226.80%6.80%6.80%6.80%
2022-20236.80%6.80%6.80%7.00%
2023-20247.70%7.70%7.70%7.70%
2024-20257.70%7.70%N.A.N.A.

Kisan Vikas Patra (KVP)

KVP certificate can be purchased by an adult for himself or on behalf of a minor or by two adults from any Departmental Post office. Minimum of Rs.1,000 and in multiples of Rs.1,000 can in invested. There is no maximum limit on investment. KVP certificate can be encashed only after 2 & 1/2 years from the date of issue. From 01.07.2024, the interest rate offered on KVP is 7.50% p.a. compounded annually which means that the investor's money gets doubled in 9 years & 7 months (115 months).

Historical Interest Rates of KVP

Financial Year April-JuneJuly-SeptemberOctober-DecemberJanuary-March
2016-20177.80%7.80%7.70%7.70%
2017-20187.60%7.50%7.50%7.30%
2018-20197.30%7.30%7.70%7.70%
2019-20207.70%7.60%7.60%7.60%
2020-20216.90%6.90%6.90%6.90%
2021-20226.90%6.90%6.90%6.90%
2022-20236.90%6.90%7.00%7.20%
2023-20247.50%7.50%7.50%7.50%
2024-20257.50%7.50%N.A.N.A.

National Pension Scheme (NPS)

National Pension Scheme (NPS) is a government sponsored pension scheme. It was launched in January 01, 2004. It is more beneficial for those employees who do not have any pension scheme by their employers. The main objective of NPS is to create enough corpus to enable subscriber to purchase an annuity after retirement. Any Indian citizen between 18 and 60 years can join NPS. Subscribers can claim an additional deduction of up to Rs 50,000 for contribution to NPS under section 80 CCD (1B) of Income Tax Act, over and above tax deduction of Rs 1,50,000 available under Section 80C. NPS facility is available at nearly 800 post offices across India

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.