Post Office Saving Schemes 2026-27: Interest Rate, Types, Tax Benefits, & Plan Comparison

Post Office investment-savings schemes in India offer risk-free returns through various schemes like Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Monthly Income Scheme (MIS). They also offer tax benefits up to Rs.1.5 lakh under Section 80C of the Income Tax Act.

Post Office Savings Schemes - Interest Rates and Tax Benefits

Indian Post Office offers various types of savings schemes with different applicable interest rates. The invested amount and interest earned on such savings schemes are also eligible for multiple tax deduction benefits under the Income Tax Act 1961. The following table summarizes types of post office savings schemes and updated interest rates for FY 2026-27.

Post Office Savings Schemes in India

Post Office Savings Account

• Post Office Savings Account Can be opened individually or jointly.
• This account offers cheque book, ATM, mobile and e-banking services on request.
• If it has been inactive for three financial years, it becomes dormant; it can be revived with KYC and a passbook.

5-Year Post Office Recurring Deposit (RD)

• In post office RD, Interest is compounded quarterly.
• Loan up to 50% of the balance available after 12 regular deposits.
• Can be closed prematurely after 3 years; if closed early, a lower interest rate applies.

Post Office Time Deposit (TD)

• Post Office Time Deposit can be pledged as security to banks and financial institutions.
• Early closure allowed after 6 months; interest rate drops if closed before 1 year.
• Premature closure needs a form and a passbook submission.

Post Office Monthly Income Scheme (MIS)

• POMIS pays monthly interest throughout the tenure.
• Premature closure is allowed only after 1 year and attracts a 1–2% penalty, depending on when it is closed.
• In case of death, the nominee can claim the amount with interest up to the previous month.

Senior Citizen Savings Scheme (SCSS)

• SCSS account Can be opened by individuals aged 60+ or jointly with a spouse.
• It offers regular income and tax benefits under Section 80C.

15-Year Public Provident Fund (PPF)

• Public Provident Fund Provides tax benefits under Section 80C (up to ₹1.5 lakh/year).
• The account can be extended in 5-year blocks after maturity.
• Interest is credited annually; a minimum deposit of ₹500/year is required to keep the account active.

National Savings Certificates (NSC)

• National Savings Certificate has a fixed 5-year tenure with guaranteed returns.
• Investment in NSC is eligible for tax deduction under Section 80C.
• It can be pledged as collateral with banks or housing finance companies.

Kisan Vikas Patra (KVP)

• Kisan Vikas Patra doubles investment over a fixed tenure (depends on the prevailing interest rate).
• It can be pledged as security with banks.

Sukanya Samriddhi Account (SSA)

• Sukanya Samriddhi Account can be opened for female children under 10 years, operated by parents/guardians.
• It offers tax benefits and a high interest rate.
• It cannot be closed 1 month before or 3 months after the child’s marriage.

 Post Office Savings Scheme Tax Benefits

• For many post office schemes, the principal amount invested can be claimed as a deduction under section 80C, and the interest amount earned can be deducted under section 80TTA and 80TTB.
• Please note that these benefits are available only under the old tax regime.
• List of schemes in which principal amount can be claimed as a deduction under section 80C:
  • Post Office Savings 5 Year Time Deposit
  • Senior Citizen Savings Scheme​​ (SCSS)
  • National Savings Certificate (NSC) (VIII Issue)
  • Public Provident Fund Scheme​​ (PPF)
  • Sukanya Samriddhi Account Scheme​​ (SSA)
• List of schemes in which the interest income can be claimed as a deduction under section 80TTB:
  • Post Office Savings Account​​
  • Senior Citizen Savings Scheme​​ (SCSS)
• Interest earned from post office savings scheme account can be claimed as a deduction under section 80TTA and 80TTB, both.

Documents Required to Open Post Office Savings Scheme

Make sure you have the following documents ready while opening a post office savings scheme:

• Account Opening Form
• KYC Form (For new customers or modification in KYC details)
• PAN Card
• Aadhaar card, if Aadhaar is not made available, the following document may be submitted.
  • Passport
  • Driving license
  • Voter’s ID card
  • Job card issued by MNREGA signed by the state government officer
  • Letter issued by the National Population Register containing details of name and address.
• Proof of date of birth/birth certificate in case of a minor account.

How to Open a Post Office Saving Schemes Account?

You can open a post office savings scheme account online through Internet banking, mobile app or by downloading the account opening form.

By Downloading the Application Form

1. Download and print the relevant application form from the post office’s official website. 
2. Attach all the necessary documents. 
3. Visit your home branch of the post office and submit the documentation to the relevant personnel. 
4. Pay the minimum amount required to open the account/scheme. 
5. The post office officials will verify your application, open your account and also give the passbook for the account.

Through Internet Banking

Internet Banking can be activated online by existing account holders in post office. It can be done by visiting the nearest post office branch, filling the necessary application form or follow the below mentioned steps. 

1. Visit the Department of Posts (DOP) Internet Banking website. 
2. Click the 'New User Activation' button. 
3. Enter the 'Customer ID' and 'Account ID' and click the 'Continue' button. You can find them on the passbook provided. 
4. Once Internet banking is activated, enter your user ID and password to log in to your DOP Internet banking. 
5. Click on the 'General Service' tab on the menu and click on the 'Service Request' tab. 
6. Under the 'Service Request' section, click the 'New Requests' tab.
7. Select the type of account you want to open from the multiple options. 
8. Enter the details on the application form and click the 'Submit' button.

Through Mobile App

1. Download and log into the ‘India Post Mobile Banking’ app on your mobile from Google Play Store. 
2. Upon successful login, select the ‘Requests’ tab on the home screen to open a post office saving account.
3. Enter the details, such as the deposit amount, tenure, the account from which you want to deposit the money, nominee, and others and submit.

Premature Encashment Conditions

Minimum lock in period is required for withdrawal of funds before maturity of most of the savings schemes. The lock in period is listed below. 

Final Word

Investing in post office savings schemes can be a wise investment option for individuals who look for a safe and risk-free investment avenue with guaranteed returns over a long period. Various schemes have different criteria and returns. This article will help one understand various post office savings schemes and give an idea about available investment opportunities.