Post Office Saving Schemes 2025-26: In India, Post Office investment-savings initiatives provide secure, government-backed options with guaranteed returns. The Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Monthly Income Scheme (MIS) are among the more popular products in these schemes, which are designed for risk-averse investors. Their already attractiveness has been amplified with the recent rise in deposit limits. This article will go over the many savings programs offered by the Post Office and the advantages of each.
One safe way to invest in India is by using the National Savings Certificate (NSC), which is distributed by the government via post offices. Many risk-averse investors choose it because of the substantial tax advantages it provides and the consistent returns it provides under Section 80C of the Income Tax Act.
Post Office Investment-Savings Schemes
The Post Office Savings Schemes offer a range of safe investments with no chance of losing money. All throughout the nation, these programs are run by around 1.65 lakh post offices. One example is the PPF plan, which is run by the government via various post offices and public sector banks in every city. Guaranteed returns are offered by these investments since they are backed by the government.
You may save up for rainy-day expenses and accomplish more with the money you put into post office programs. They are also eligible for tax breaks under Section 80c of the Income Tax Act, which may be up to 1.5 lakh rupees. Listed below are the several programs that the post office has to provide.
Comparison of Interest Rates of Various Post Office Savings Schemes
| Scheme | Interest Rate (Applicable from 01/04/2025) | Minimum Investment | Maximum Investment | Eligibility | Tax Implications |
| Post Office Savings Account | 4% per annum (p.a.) | Rs. 500 | No limit | Resident Indian, minor(above 10 years) and major | Tax-free interest up to Rs 50,000 for senior citizens |
| Post Office Time Deposit Account (TD) | One-year – 6.9% p.a. Two-year – 7.0% p.a. Three-year – 7.1% p.a. Five-year – 7.5% p.a. (Compounded Quarterly) | Rs 1,000 | No limit | Resident Indian, minor(above 10 years) and major | -Tax benefits available under Section 80C only if the deposit is held for 5 years. -Interest earned is taxable -TDS to be deducted on interest earned for more than Rs 40,000 p.a.(Rs 50,000 in case of senior citizens) |
| Post Office Monthly Income Scheme Account (MIS) | 7.4% per annum payable monthly | Rs 1,000 | For single account- Rs 9 lakh Joint account accounts- Rs 15 lakh | Resident Indian, minor(above 10 years) and major | – Tax benefit under Section 80C for deposits –Interest earned is taxable -TDS to be deducted on interest earned for more than Rs 50,000 p.a. |
| Senior Citizen Savings Scheme (SCSS) | 8.2% p.a. (Compounded Quarterly) | Rs 1,000 | Maximum deposit over the lifetime allowed at Rs 30 lakh | Individuals of age> 60 years or age between 55 and 60 for retired civilian or defense employees | – Tax benefit under Section 80C for deposits – TDS to be deducted on interest earned for more than Rs 50,000 p.a. |
| 15-year Public Provident Fund Account (PPF) | 7.1% p.a. (Compounded annually) | Rs 500 per financial year | Rs 1.5 lakh per financial year | Resident Indian, minor and major | Tax rebate under Section 80C for deposits (maximum Rs 1.5 lakh p.a.) interest is tax-free. |
| National Savings Certificates (NSC) | 7.7% p.a. (Compounded annually) | Rs 1,000 | No limit | Resident Indian, minor and major | Tax rebate under section 80C for deposits (maximum Rs 1.5 lakh p.a.) |
| Kisan Vikas Patra (KVP) | 7.5% p.a. (Compounded annually) | Rs 1,000 | No limit | Resident Indian, minor and major | Interest is taxable, but no tax on the amount received on maturity |
| Sukanya Samriddhi Accounts | 8.2% p.a. (Compounded annually) | Rs 250 per financial year | Rs 1.5 lakh per financial year | Girl Child – up to 10 years from birth | Investment (up to Rs 1.5 lakh exempt under Section 80C), interest and amount received on maturity is tax-free |
Savings Schemes Under Post Office Investments
Post Office Savings Account
- A post office savings account requires a minimum deposit of Rs 500 to be opened.
- You may create an account as a single owner or as a joint owner with a domestic client.
- Money deposited into the post office account earns interest at a rate of four per cent per year.
- Upon request, you may use the account with a variety of services, including a chequebook, an ATM card, online and mobile banking, and more. At the end of every fiscal year, interest is credited.
- The Income Tax Act provides a deduction of up to Rs 10,000 per individual from their total income under Section 80tta.
- Your account will be considered quiet or inactive if no transactions occur throughout the three consecutive fiscal years.
- A new application, updated Know Your Customer (KYC) documentation, and a passbook are required to revive such an account at the local post office.
5-Year Post Office Recurring Deposit Account (RD)
This RD account is paid for for five years, as the name suggests.
- You may earn interest at a rate of 6.7% per year on a fixed monthly deposit as little as Rs 100.
- Every three months, the interest is added together.
- After 12 payments have been made without any defaults, you will be eligible for a loan of up to 50% of the available deposit in the account.
- By submitting an application at the relevant Post Office, the account may be extended for an additional five years. During the extension, the interest rate that was applied when the account was first established will continue to apply. By submitting an application at the relevant Post Office, the account may be extended for an additional five years. During the extension, the interest rate that was applied when the account was first established will continue to apply.
- RD Premature account closure is possible three years after account establishment by submitting the appropriate paperwork to the appropriate Post Office.
- Even if the account is closed one day before maturity, the interest rate will still apply to the PO Savings Account.
Post Office Time Deposit Account (TD)
Time deposit accounts offered by the post office come with four different maturities: one, two, three, and five years.
This account requires a minimum deposit of 1,000 rupees.
Interest is due once a year, albeit it is computed quarterly. Here are the interest rates for the first quarter of fiscal year 2025–26, which runs from April 1st to June 30th, 2025:
| Period | Rate of Interest |
| 1 year account | 6.9% |
| 2 year account | 7% |
| 3 year account | 7.1% |
| 5 year account | 7.5% |
People who choose a low-risk investment could consider Post Office Saving Schemes. Ideal for risk-averse savers who want a return that isn’t affected by market swings, these plans provide a steady stream of income. Internet banking, a smartphone app, or a downloadable form are all ways to create an account with the Postal Savings Scheme online.
Through Internet Banking
Step 1: Go to the website for the Department of Posts (DOP) Internet Banking.
Step 2: Select “New User Activation” from the menu.
Step 3: Click the ‘Continue’ icon after having entered the ‘Customer ID’ and ‘Account ID’. You may also activate your Internet banking by visiting the branch of your local post office, where you can also get the necessary paperwork.
Step 4: After you’ve enabled your Internet banking, go to your DOP account and log in using your username and password.
Step 5: To access the ‘Service Request’ page, go to the ‘General Service’ menu and click on it.
Step 6: Navigate to the ‘New Requests’ tab under the ‘Service Request’ section.
Step 7: From the drop-down menu, choose the account type you want to open.
Step 8: Fill out the application to the best of your ability and hit the “Submit” button.