Post Office Schemes in Brief :
Post Office Savings Account – It acts as a normal savings account of any bank, and the account is transferable from one post office to another.
National Savings Recurring Deposit Account – The Scheme helps small/poor investors to form a corpus to meet their future needs. An account is either opened by an adult or by two adults jointly.
National Savings Time Deposit Account – There is a tax benefit for the investment made in the 5-year post office time deposit. The investment qualifies for the deduction under Section 80C of The Income Tax Act, 1961.
National Savings Monthly Income Account – This is a scheme in which investors contribute a certain amount and earn a fixed interest every month.
Senior Citizen Savings Scheme Account – The Scheme is a savings instrument offered to Indian residents aged over 60 years. The deposit matures after 5 years from the date of account opening but can be extended once by an additional 3 years by the investor.
Public Provident Fund Account – Public Provident Fund is a long-term investment scheme declared by the Government of India. It is a safe post office deposit scheme that offers tax exemptions and attractive interest rates as decided each financial year.
National Savings Certificate (NSC) – The Scheme is a fixed income investment scheme that one can open with a post office. As part of an initiative from the Government of India, it is a savings bond that encourages subscribers, primarily small or mid-income investors, to invest while saving on income tax.
Kisan Vikas Patra Account – Kisan Vikas Patra is a certificate scheme from the post office. It may actually double as a one-time investment in a period of approximately 9 years & 10 months.
Sukanya Samriddhi Account – SSY is a savings scheme launched by the Government of India for the financial betterment of the girl child. The scheme enables parents to build capital for the future education and marriage expenses of their female child and provides an attractive interest rate on the investment.
Process to Apply for a Savings Scheme in Post Office
The following steps can enable you to easily apply for a post office saving scheme:
Step 1: Visit the closest post office branch.
Step 2: Get the form to open the relevant account from the post office. However, you can also download the form online from the official portal of the Indian Post Office.
Step 3: Fill in the form with the needed details and submit it along with the KYC proof. You will also have to give other documents as required.
Step 4: Finish the process of enrolment by depositing the amount of the scheme you chose.
Required Documents for Post Office Saving Schemes
- Form (relevant)
- KYC Form
- PAN Card
- Aadhaar Card
- Driving license
- Voter’s ID card
- Job card
- Proof of date of birth
Advantages of Investments in Post Office Schemes
- Simple Investment Process
Post office saving schemes are easy to enrol in and require limited documentation as simple procedures in post offices ensure that these saving schemes are safe investment tools and provide a fixed return as they are backed by the government.
- Easily Accessible
These schemes are best suited for rural and urban investors as Post offices are in every corner of the country. To cater to the uneducated and rural population, these are simple and thus make these a much-preferred savings option.
- Long-term Benefits
The investments in the Post Office Schemes are more future and long-term oriented as it can be the best retirement or pension plan with the investment period extending up to 15 years for a PPF account. With this kind of Investment scheme, an investor can diversify his/her portfolio for a risk-free and fixed return.
- Risk-free and Competent Interest Rates
Interest rates in post office savings schemes range from 4% to 8% which is also risk-free and highly competitive with Banks. There is a minimal amount of risk involved as this is regulated by the Government of India.
Post Office Savings Account (SB)
The Post Office Savings Account (SB) is similar to any retail bank savings account. It offers an interest rate of 4 per cent and the minimum deposit amount is ₹500, and the minimum withdrawal amount is ₹50 only. Both adults and minors can open a savings bank account. There is also a tax exemption for up to ₹10,000, and there is no maximum investment limit.
National Savings Recurring Deposit Account (RD)
The National Savings Recurring Deposit Account (RD) is one of the popular post office savings schemes that you can avail of. It has an interest rate of 5.8% per annum with a minimum monthly deposit of ₹100. There is no maximum limit for your investments, and the tenure for maturity is fixed at five years. You can also close this account prematurely by paying the amount for three years.
National Savings Time Deposit Account (TD)
The National Savings Time Deposit Account (TD) is a tenure-based fixed deposit account that requires a minimum investment of ₹1000 with no maximum limits. This post office savings scheme offers you an attractive 6.7% interest for a tenure of five years. You can also create a TD account for one year, two, and three years with an interest rate of 5.5%.
National Savings Monthly Income Account (MIS)
The National Savings Monthly Income Account (POMIS) is a post office savings scheme that pays an interest rate of 6.6%. The minimum investment limit is ₹1000. There is a maximum investment limit of ₹4.5 lakhs for individual accounts and ₹9 lakhs for joint accounts. For minors, the maximum investment limit is ₹3 lakhs. It is a go-to wealth management option for many Indians due to its centralised monitoring and safety.
Senior Citizens Savings Scheme Account (SCSS)
Senior Citizens Savings Scheme Account (SCSS) is a post office savings scheme for any individual over the age of 60. However, retired civilian employees above 55 years of age and retired defence employees above the age of 50 can also create such an account. The minimum deposit required is ₹1000 rupees, and the maximum investment limit is set at ₹15 lakhs. The interest rate is also lucrative and pegged at 7.4%.
Public Provident Fund Account (PPF)
The PPF account offers an attractive long-term investment option for Indian individual adults with a minimum deposit of ₹500. The maximum deposit is ₹1.5 lakhs per financial year. Persons of an unsound mind can also open such an account with the consent of a legal adult guardian. The interest rate for a PPF account is set at 7.1%.
Sukanya Samriddhi Account (SSA)
The Sukanya Samriddhi Account(SSA) is a special government scheme to empower girl children in India. It has an interest rate of 7.6% and requires a minimum deposit of ₹250 and a maximum investment limit of ₹1.5 lakhs in one financial year. Each family can have two such SSA accounts. In the case of twins or triplets, the family can apply for more than two such accounts. There is no limit to the number of deposits that can be made.
National Savings Certificates (VIIIth Issue) (NSC)
National Savings Certificates can be purchased at any post office for a minimum sum of ₹1000. There is no maximum limit, and it offers an attractive interest rate of 6.8% annually. It is a 5-year investment plan that can be opened by an individual or jointly. Even a minor above the age of 10 can receive an NSC in their name.
Kisan Vikas Patra(KVP)
Kisan Vikas Patra is a new scheme launched by the Government of India under which any Indian adult can open a KVP individually or jointly with a minimum balance of ₹1000. The interest rate offered is at 6.9%. This account can also be prematurely closed with no loss of benefits after 2.5 years. There is no maximum limit to the investment amount or the number of KVP accounts as well.
PM CARES for Children Scheme, 2021
If a child has lost both parents or the last surviving parent due to the COVID-19 pandemic, an account will be opened in the child’s name, and an upfront lumpsum payment will be made from the PM CARES fund. The deposit amount is ₹10 lakhs, and the beneficiary receives a monthly stipend of ₹4000 each month until the age of 18. After which, they can earn interests as per the monthly income account scheme on that ₹10 lakhs until the age of 23.
Interest rates in 2024
The following table denotes all the post office saving schemes and their respective interest rates:
| Sr. No. | Post Office Savings Schemes | Interest Rates |
| 1 | Post Office Savings Account | 4% |
| 2 | National Savings Recurring Deposit Account | 6.7% |
| 3 | National Savings Time Deposit Account | 6.7% – 7.5% |
| 4 | National Savings Monthly Income Account | 7.4% |
| 5 | Senior Citizens Savings Scheme Account | 8.2% |
| 6 | Public Provident Fund Account | 7.1% |
| 7 | Sukanya Samriddhi Account | 8.0% |
| 8 | National Savings Certificates (VIIIth Issue) | 7.7% |
| 9 | Kisan Vikas Patra | 7.5% |
| 10 | PM CARES for Children Scheme | N/A |
Benefits of Post Office Savings Account
There are a plethora of benefits to opening a post office savings account. A few of them have been listed below:
- Post office savings schemes are highly secured since they are under the government’s supervision, and the returns are fixed and guaranteed¹.
- Post offices are situated almost everywhere; hence there is higher reach, even in rural locales around India.
- There is a low minimum deposit that amounts to 50 rupees only, so even underprivileged people can avail of its benefits.
- There are many types of savings accounts to choose from that cater to almost every kind of individual.
- Most of these accounts don’t have a maturity period and can be withdrawn at any time and by anyone by producing the relevant documents and customer ID.
- These accounts can be transferred from one post office to another without much hassle.
- Most post office savings accounts also come with the benefit of ATM/Debit cards, so there is greater accessibility.
- Even minors can create a post office savings account, but the guardian or parent would manage the funds.
- A person can be nominated to whom the funds will be transferred on account of any unforeseen death of the account holder.
- An individual post office savings account can be converted into a joint account and vice versa.
- You can also open a post office savings account online through the IPPB app. So, it is quick and hassle-free.
How to open a Post office savings account
Opening a post office savings account is simple. Visit your nearest post office and procure an account opening form of your choice. Submit the necessary documents and your account will be immediately created.
The following documents are required for opening a post office savings scheme account:
- Relevant account opening form
- KYC registration form
- PAN card, Aadhar, Driving license, Voter id for identity verification
- The amount to be deposited
- Job card or Proof of Employment, where applicable
You can also open a post office savings account online. For this, follow the steps mentioned below:
- Step 1: Get approval from your nearest post office for internet banking. This may take up to 24 hours.
- Step 2: Visit the official Internet Banking portal of the Post Office or the IPPB app.
- Step 3: Select the Savings Account of your choice on the POB Products page and click on the ‘Apply Now’ button.
- Step 4: Fil in all the required details such as name, date of birth, permanent address etc.
- Step 5: Upload all the required documents for verification.
- Step 6: Review your form and then click on ‘Submit’.
Fee and charges of post office savings scheme
Usually, there are no additional charges or fees associated with opening a post office savings scheme account. Only the minimum deposit, along with the required documents, are required. However, charges are applicable for issuing a duplicate passbook, cheque book, and account transfers.
Follow the table below for the exact fees structure in a post office savings scheme:
| Facilities | Fees |
| Transferring or pledging of a post office savings account | Rs 100 |
| Cheque dishonour fee | Rs 100 |
| Issuing a duplicate cheque book | Rs 50 per cheque book |
| Issuing a deposit receipt | Rs 20 per deposit receipt |
| Issuing an account statement | Rs 20 per account statement |
| Cancellation or a change of nomination | Rs 50 per change/cancellation |
| Issuing a passbook due to missing or mutilated certificate | Rs 10 per registration |
Besides the charges mentioned above, there may be a few other scheme-specific charges such as the form charge for NSCs, etc.
Minimum and maximum saving limits in post office savings schemes
The minimum deposit amount varies based on the type of post office savings scheme. While the savings bank account has a minimum deposit limit of ₹50, the RD account has a limit of ₹100. A post office TD account has a minimum deposit limit of 1000 rupees and no maximum limit.
A POMIS account has a maximum limit of ₹4.5 lakh for individual accounts and ₹9 lakh for joint accounts, and the minimum limit is ₹1000. For an SCSS account, the minimum deposit is ₹1000, and the maximum limit is set at ₹15 lakhs. For a PPF account, the minimum deposit is set at ₹500, and the maximum deposit is 1.5 lakh per financial year.
For SSA accounts, the minimum deposit is set at ₹250, and the maximum limit is 1.5 lakhs per financial year. NSCs don’t have any maximum limit, and the minimum amount is set at ₹1000. For KVP accounts, the minimum deposit required is ₹1000, and there is no set maximum investment limit. Moreover, there is no deposit necessary for the PM CARES for Children Scheme.
Encashment /premature withdrawal of post office savings schemes
The premature closing of post office savings schemes varies depending on the type of account created. While the RD account can be prematurely closed after 3 years, a TD account can be closed within 6 months. There are no charges involved with a premature closing for the SB account.
For the premature closing of a POMIS account, there is a 1% deduction after three years and a 2% deduction if closed before three years. You can also close a POMIS account before one year with no benefits. For SCSS accounts, the deductions range from 1.5% before 3 years and 1 % between 3 to 5 years. There are no benefits if closed before one year.
For a PPF account, the closure is only allowed after 5 years with a 1% deduction on account of life-threatening ailments, death or if the resident Indian has gained an NRI status. SSA accounts can only be closed after 5 years on account of extreme compassionate grounds or unforeseen life-threatening events with no deductions.
NSCs can’t be closed prematurely unless there’s a court order or death of any of the holders. For KVP accounts, there are no premature withdrawal deductions after 2.5 years. There is also no premature closure for the PM CARES for Children Scheme.
Eligibility criteria to avail post office savings scheme
The eligibility criteria for a post office savings scheme depend on the type of account created. More information about the eligibility can be found on the respective scheme pages. It is recommended you go through the official websites for the same.
The following are a few of the requirements common to most the general post office savings schemes:
- Any Indian adult is allowed to start a post office savings account.
- In the case of a minor, he/she must be at least 10 years old.
- On behalf of a minor, a bona fide guardian may also open a post office savings account.
- For joint accounts, two or three persons are allowed to open a joint post office savings scheme account.
- Even if a person is not of sound mind, he/she can open a post office savings scheme account.
- For non-general schemes such as the KVP accounts, the relevant eligibility may also depend on the nature of work, earnings, age, et al.