Post Office Saving Schemes: Know Meaning, Types and Benefits

Discover the benefits of Post Office Saving Schemes and how they provide secure investment opportunities for your financial future.
Post Office Saving Schemes
4 mins
16 March 2024

Post Office Saving Schemes have been the go-to choice for countless individuals seeking safe and reliable investment options. These schemes, offered by the Indian Postal Service, provide a secure way to grow your wealth. In this article, we will understand the various Post Office Saving Schemes available, their interest rates, and the advantages they offer. Whether you are looking for a regular income or long-term savings, Post Office Schemes have something for everyone. We will also guide you through the application process, required documents, and answer common questions.

What are Post Office Saving Scheme?

Post Office Saving Schemes refer to a variety of investment options offered by the Indian Postal Service. These schemes provide individuals with opportunities to deposit their savings in secure and government-backed instruments to earn interest and grow their wealth over time.

List of Post Office Saving Schemes and Their Interest Rates

Savings Scheme

Interest Rate (%)

Minimum Investment

Tax Implications

Public Provident Fund (PPF)

7.1% (compounded yearly)

Rs. 500/year

Tax Benefits

Senior Citizens Savings Scheme (SCSS)


Rs. 1,000


Monthly Income Scheme (MIS)


Rs. 1,000


Recurring Deposit (RD)

6.7% (quarterly compounded)

Rs. 100/month


Time Deposit (TD) 1 year


Rs. 1,000


Time Deposit (TD) 2 year


Rs. 1,000


Time Deposit (TD) 3 year


Rs. 1,000


Time Deposit (TD) 5 year


Rs. 1,000

Tax Benefits

Savings Account


Rs. 500

No tax on interest (up to Rs. 10,000)

National Savings Certificates (NSC)


Rs. 1,000

Tax Benefits

Kisan Vikas Patra (KVP)


Rs. 1,000


Process to Apply for a Savings Scheme in Post Office

Applying for a Post Office Saving Scheme is a straightforward process. Here's how you can get started:

  1. Visit Your Nearest Post Office: Locate the nearest post office branch offering the desired savings scheme.
  2. Request Application Form: Request the application form for your chosen scheme from the post office counter.
  3. Fill the Form: Complete the form with accurate details. Make sure to provide all necessary information.
  4. Submit the Form: Submit the filled form along with the required documents and the initial deposit amount. Ensure you meet the minimum deposit requirements for the selected scheme.
  5. Receive Account Passbook/Certificate: Once your application is processed, you will receive a passbook or certificate confirming your investment.

Also Read: 3 Best Investment Schemes for Senior Citizens

Required Documents for Post Office Saving Schemes

The documents needed for Post Office Saving Schemes may vary slightly based on the specific scheme you choose. However, common requirements include:

  1. Duly filled application form: Ensure all details are accurate and complete.
  2. Identity proof: Valid government-issued ID (Aadhar card, passport, voter ID, etc.).
  3. Address proof: Proof of your current address (utility bills, rental agreement, etc.).
  4. Passport-size photographs: Usually, a few recent photographs are required.
  5. Age proof: Required for schemes with age restrictions, like SCSS.
  6. Nomination form: To nominate a beneficiary in case of unfortunate events.
  7. Initial deposit amount: Ensure you have the minimum deposit amount ready.

Read Also: Post Office FD Interest Rates - Lates Rates & Schemes

Advantages of Investments in Post Office Schemes

Investing in Post Office Saving Schemes comes with several compelling advantages:

  1. Safety: Backed by the Government of India, Post Office Schemes are considered ar some of the safest investment options.
  2. Attractive Interest Rates: Post Office Schemes offer competitive interest rates, ensuring your money grows over time.
  3. Tax Benefits: Schemes like PPF and NSC provide tax benefits under Section 80C of the Income Tax Act.
  4. Regular Income: Schemes like SCSS and MIS offer a regular source of income, making them ideal for retirees.
  5. Flexibility: With various options catering to different needs, Post Office Schemes provide flexibility in choosing the right investment avenue.
  6. Accessibility: Post Office branches are widespread, ensuring easy access for investors.
  7. No Market Dependency: Unlike market linked investments, Post Office Schemes are not dependent on market fluctuations.

Minimum and maximum saving limits in post office savings schemes

The minimum deposit requirement is different depending on the type of post office savings scheme. While the savings bank account has a minimum deposit threshold of Rs. 50, the RD account requires a minimum deposit of Rs. 100. The post office TD account necessitates a minimum deposit of Rs. 1,000 with no specified maximum limit.

For a POMIS account, individual accounts have a maximum limit of Rs. 4.5 lakh, joint accounts have a limit of Rs. 9 lakh, and the minimum deposit is Rs. 1,000. In the case of an SCSS account, the minimum deposit stands at Rs. 1,000, and the maximum limit is capped at Rs. 15 lakhs. PPF accounts require a minimum deposit of Rs. 500, and the maximum allowable deposit is Rs. 1.5 lakh per financial year.

In SSA accounts, the minimum deposit is Rs. 250, and the maximum limit is Rs. 1.5 lakhs per financial year. NSCs do not have a specified maximum limit, and the minimum deposit is Rs. 1,000. KVP accounts necessitate a minimum deposit of Rs. 1,000, with no defined maximum investment limit. Additionally, there is no required deposit for the PM CARES for Children Scheme.


Post Office Saving Schemes offer a reliable and secure way to grow your savings. With a variety of options tailored to different financial goals, these schemes are a popular choice among investors in India. Whether you are looking for long-term savings, regular income, or a safe place to park your funds, Post Office Schemes have something to offer. The process of applying is straightforward, and the documentation requirements are minimal. Additionally, the tax benefits and competitive interest rates make these schemes even more appealing. So you can consider Post Office Saving Schemes as a valuable addition to your investment portfolio and secure your financial future.

If you want to go for a safe investment option like a post office scheme, Bajaj Finance Fixed Deposit is an amazing option.

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Frequently asked questions

What is the minimum investment amount for Post Office Saving Schemes?

The minimum deposit amount varies for each scheme. For example, PPF requires a minimum of Rs. 500 per year, while SCSS demands a minimum deposit of Rs. 1,000.

Are Post Office Saving Schemes tax-free?

Post Office Saving Schemes are not entirely tax-free. While the interest income from some schemes is tax-exempt, the principal amount may offer tax benefits under Section 80C. Tax rules differ between schemes, so be aware of the specific tax implications when considering them.

Can I prematurely withdraw from Post Office Saving Schemes?

Yes, most schemes offer premature withdrawal options with certain conditions and penalties.

Are the interest rates on Post Office Schemes fixed or variable?

Interest rates on Post Office Saving Schemes may be fixed or variable, depending on the specific scheme and the tenure you choose.

How do I nominate a beneficiary for my Post Office Savings Scheme?

You can nominate a beneficiary by filling out the nomination form at the time of application or later at the post office.

Is it possible to transfer a Post Office Savings Account to another post office branch?

Yes, you can transfer your Post Office Savings Account from one branch to another.

Can non-resident Indians (NRIs) invest in Post Office Saving Schemes?

Yes, NRIs are allowed to invest in some Post Office Saving Schemes, like the NRE (Non-Resident External) Fixed Deposit.

Can students open a post office savings scheme?

Yes, students can open post office savings accounts. If the student is a minor (below 10 years), a parent or guardian must open the account on their behalf.

Can I check my post office account online?

Yes, you can check your post office account online through the India Post Payments Bank (IPPB) website or mobile app.

Can I transfer money from the post office to my bank account?

Yes, you can transfer money from your post office savings account to your bank account.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.