Post Office Scheme: Post Office Savings Schemes are a very popular option for depositing small savings without any risk and earning guaranteed income.
Post Office Scheme: Post Office Savings Schemes are a very popular option for depositing small savings without risk and for guaranteed income. Like banks, a savings account can also be opened in the post office. There is a facility to open this account in any nearby post office. The account holder is getting 4 percent annual interest on the Post Office Savings Account. This account can be opened singly or jointly.
Account will be opened with ₹ 500
According to the information available on the post office website, a savings account can be opened with a minimum of Rs 500. It is necessary to make a nomination while opening an account. There is no maximum deposit limit in this account. The interest on this account is calculated on the basis of the existing balance in the account till the 10th of every month and the last date of the month. The interest rate is paid at the end of every financial year. The interest rates are determined by the Ministry of Finance.
Also know here that if you close the account, you will get the interest payment on the balance of your account in the previous month in which you are closing the account. Under the Income Tax Act 80TTA, interest up to Rs 10,000 on a savings account in a financial year is tax free.
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 |
| 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 |
You can withdraw ₹50
You can deposit a minimum of Rs 500 in the savings account of the post office. This account should be in multiples of Rs 10. The specialty of this account is that you can withdraw a minimum of Rs 50 from it. However, keep in mind that if you have less than Rs 500 in your account, you cannot withdraw. If the minimum balance of the account is not Rs 500 by the end of the financial year, then Rs 50 will be deducted from the account as account maintenance fee. At the same time, if the account balance becomes zero then the account will be closed automatically.
PO Savings Account: These facilities are available
- Cheque Book
- ATM Card
- E-Banking/Mobile Banking
- Aadhar Seeding
- Atal Pension Yojana (APY)
- Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
To avail these facilities, you have to fill the form and submit it in your branch. Know about this account that if there is no deposit or withdrawal in the account for three consecutive financial years, then the account will become silent/dormant.
