Post Office Saving Schemes 2025-26: Interest Rate, Benefits, Features and Plan Comparison

Post Office investment-savings schemes in India offer secure, government-backed options with guaranteed risk-free returns. These schemes cater to risk-averse investors and include popular products like the 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.

Recently, deposit limits have been increased, making them even more attractive. The following table summarizes the details of various post office schemes.

Savings Schemes Under Post Office Investments

The various savings schemes under post office investments are given below.

• Post Office Savings Account
• Post Office Time Deposit Account
• Post Office Monthly Savings Scheme Account (POMIS)
• Senior Citizens Savings Scheme (SCSS)
• 15 year Public Provident Fund Account
• National Savings Certificate (NSC)
• Kisan Vikas Patra (KVP)
• Sukanya Samriddhi Accounts (SSA)

Advantages of Investment in  the Post Office-Saving Schemes in India

The following are the advantages of investing in post office saving schemes:

Easy to Invest

The savings schemes are easy to enroll in and best suited for rural and urban investors. Anyone who wants to hedge risk in the portfolio for a fixed decent return can invest in these schemes. The simplicity and availability make these investments a much-preferred savings cum investment option. 

Documentation and Procedures

Limited documentation and proper procedures in the post office ensure that these saving schemes are simple to opt for and safe to be locked onto as the government backs them. 

Fulfilment of Investment Goals

The investments in the Post Office Schemes are long-term oriented, with the investment period extending up to 15 years for a PPF account. Therefore, these investment options are excellent for retirement and pension planning. 

Tax Exemption

Most of these schemes are eligible for tax deductions under Section 80C for the deposit amount. A few schemes like the PPF, the Sukanya Samriddhi Yojana, etc., also have the interest earned amount exempted from taxation. 

Interest Rates

Interest rates in these schemes range from 4% to 9% and are risk-free. A minimal amount of risk is involved as the Government of India undertakes these investment options.  

Different Buckets of Products

There is a wide range of products based on different types of individuals. Public Provident Fund (PPF), Kisan Vikas Patra, and Sukanya Samriddhi Yojana are well-known schemes. The government has made these small savings schemes available via post offices to provide a safe investment avenue for the public by providing good returns and keeping their investments safe. These schemes are easy to manage.   

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.

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

Step 1: Download and print the relevant application form from the post office’s official website. 
Step 2: Attach all the necessary documents. 
Step 3: Visit your home branch of the post office and submit the documentation to the relevant personnel. 
Step 4: Pay the minimum amount required to open the account/scheme. 
Step 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. 

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

Through Mobile App

Step 1: Download and log into the ‘India Post Mobile Banking’ app on your mobile from Google Play Store. 
Step 2: Upon successful login, select the ‘Requests’ tab on the home screen to open a post office saving account.

Step 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.

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.

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.