Post Office Saving Schemes

The Post Office stands as a trusted and dependable institution, valued by millions of Indians for their investment in various savings schemes. The Post Office Saving Schemes like the Public Provident Fund, Post Office Savings Account, Kisan Vikas Patra (KVP), and Sukanya Samriddhi Yojana (SSY) are government-backed schemes that offer high-interest rates, and tax benefits. Due to their government backing, these investment options offer a safe financial choice with minimal to no risk involved.

Check out more about the various types of Post Office Savings Scheme.

Post Office Saving Schemes Interest Rate

The savings schemes provided by the Post Office come with distinct interest rates and tax implications. Here's a table summarizing the current interest rates for various Post Office Savings Schemes.

Post Office Schemes Interest Rate Investment Amount Taxability
Post Office Savings Account 4.0% p.a. ₹500 onwards Up to ₹10,000 p.a. Of interest earned is Tax-Free (Financial year 2012-13 onwards)
National Savings Time Deposit Accont 6.9%-7.5% ₹1,000 onwards Investments with a 5-year tenure qualify for tax benefits under-Section 80C.
National Savings Recurring Deposit Account 6.7% p.a. ₹100/- onwards -
National Savings Monthly Income Account 6.6% p.a.(monthly deposits) ₹1,000 to ₹9 lakh (single account), ₹15 lakh (joint account) -
Public Provident Fund Account (PPF) 7.1% p.a. (compounded yearly) ₹500 to ₹1.5 lakh per financial year Deposits up to Rs. 1,50,000 in a financial year are exempt under section 80C.

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Eligibility of Post Office Saving Account

The following are the eligibility criteria to open a Post Office Savings Account:

  • Nationality: You must be an Indian citizen.
  • Age: Individuals must be at least 10 years old to open an account in their name. Minors can have an account opened on their behalf by a guardian.
  • Identity Proof: Provide valid proof of identity, such as an Aadhaar card, passport, or driving license.
  • Address Proof: Submit a valid proof of address, such as a utility bill or bank statement.
  • Minimum Deposit: A minimum deposit of ₹20 is required to open a Post Office Savings Account.

Document Required For Post Office Saving Schemes

Check the official India Post website or the specific post office for any scheme-specific requirements. In general, you will need the following documents to open a Post Office Saving Scheme:

  • Identity Proof: Aadhaar card, Passport, Voter ID, Driving license, PAN card.
  • Address Proof: Aadhaar card, Passport, Voter ID, Utility bills, Bank statement.
  • Photograph: Passport-size photographs of the account holder(s).
  • Age Proof: Birth certificate, School leaving certificate, Passport.
  • Income Proof (if required): Salary slips, Income tax returns, Form 16.
  • Nomination Form: A filled and signed nomination form.
  • Senior Citizen Certificate (for SCSS): Age proof to confirm eligibility.
  • Guardianship Proof (for Minors): Documents establishing guardianship for accounts opened on behalf of minors.

Ensure you have both original and photocopies of these documents for verification.

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Various Post Office Saving Schemes

The Post office offers several savings schemes catering to various groups of the public. You can choose the best-suited scheme for you among the following:

  • Post Office Savings Account (POSB): A basic savings account similar to a bank account, offering interest on deposits and allowing withdrawals.
  • Post Office Recurring Deposit Account (RD): A regular investment scheme where you make fixed monthly deposits for a specified period, earning interest on the accumulated amount.
  • Post Office Time Deposit Account (TD): A fixed deposit scheme where you deposit a lump sum for a specified period, earning a fixed interest rate.
  • Post Office Monthly Income Scheme Account (MIS): An income-generating scheme where you invest a lump sum and receive a fixed monthly income.
  • Senior Citizen Savings Scheme (SCSS): A special savings scheme for senior citizens above 60 years, offering attractive interest rates and tax benefits.
  • Public Provident Fund (PPF): A long-term tax-saving investment scheme with attractive interest rates and a lock-in period of 15 years, ideal for retirement planning.
  • National Savings Certificates (NSC): A small savings scheme where you invest a lump sum and receive the maturity amount along with accrued interest at the end of the specified period.
  • Kisan Vikas Patra (KVP): A medium-term savings scheme primarily aimed at farmers, offering attractive interest rates and tax benefits.
  • Sukanya Samriddhi Accounts (SSA): A special savings scheme for girl children, offering attractive interest rates and tax benefits, promoting girl child education and financial security.

Advantage of Investing in Post Office Schemes

Investing in Post Office Schemes offers several advantages, making them a popular choice for many individuals seeking secure and reliable investment options. Here are some key advantages:

  • Tax Benefits: Certain schemes, such as the Public Provident Fund (PPF) and National Savings Certificates (NSC), offer tax benefits under Section 80C of the Income Tax Act, helping investors save on taxes.
  • Diverse Range of Schemes: Post Office provides a variety of saving schemes catering to different financial goals and preferences, including long-term investments like PPF, monthly income options like the Monthly Income Scheme (MIS), and more.
  • Low Risk: Post Office Saving Schemes are considered low-risk investments as they are backed by the government, providing a level of safety for investors.
  • Nomination Facility: Investors can easily nominate a family member or beneficiary, ensuring a smooth transfer of the investment in case of unforeseen circumstances.
  • Compounding Benefits: Many schemes compound interest, allowing investors to earn interest on the principal amount as well as on the accumulated interest, leading to significant growth over time.

How to Open Post Office Saving Schemes Account

Follow these easy steps to open your Post Office Saving Schemes Account:

  • Step 1: Visit the Nearest Post Office and request the application form or download it from the India Post website.
  • Step 2: Fill out the application form with accurate and legible information.
  • Step 3: Submit the completed form, along with necessary documents and a passport-size photograph, to the post office official.
  • Step 4: Deposit a minimum of Rs. 500 or the required amount for your chosen scheme.
  • Step 5: Once your documents and payment are verified, your Post Office savings accountand passbook containing essential details will be ready!

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Post Office Scheme Through Internet Banking

The Post Office has now enabled Internet banking, enabling you to open a Digital savings account by India Post Payments Bank (IPPB) which is a subsidiary of the Department of Post via IPPB Mobile App.
Currently, you cannot open a Post Office Savings Scheme account online. You have to visit your nearest post office branch with your KYC documents and two photographs to create such an account and invest in it.

However, once you have opened a Post Office Savings Scheme account, you can manage it online through the India Post Payments Bank (IPPB) website or mobile app. You can also open or close the Kisan Vikas Patra Account and National Savings Certificate from their e-banking portal.

Frequently Asked Questions

Yes, many post offices offer online account access for checking balances and transactions.

Generally, money can be transferred from a post office account to a bank account, but specific procedures may vary.

The 5-Year Post Office Time Deposit is a suitable savings scheme for a 5-year period.

Yes, students can open a post office savings scheme, like the Public Provident Fund (PPF) or the Senior Citizens Savings Scheme (SCSS).

The minimum balance requirements vary depending on the specific post office savings scheme.

India Post's online banking offers facilities such as balance inquiry, fund transfer, and bill payments.

Commonly required documents include proof of identity, address, and passport-sized photographs to open a post office savings account.

Post Office investments are considered safe, and some schemes like PPF offer tax benefits under Section 80C of the Income Tax Act.

Withdrawals can usually be made from the post office where the account is held.

Withdrawal limits depend on the specific post office savings scheme, and they may have certain restrictions or conditions.

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