What is a Post Office Investment Savings Scheme?

The post office savings plan includes investment instruments that provide a variety of reliable and risk-free returns. There are numerous ways to open a savings account at a post office in India. These provide appealing fixed interest rates and fixed deposit policies that are set or recurring.

For investors, it is a beneficial scheme to steadily earn a fixed interest on their deposit amount over time.

Benefits of Investing in Post Office Savings Scheme

Below are some benefits of investing in Post Office Savings Schemes:

Easy process of enrolment – It requires very limited documentation to invest in a post office saving scheme. The easy procedure involved in availing these schemes makes them easy to invest in.
Investment friendly – It suits investors from both urban as well as rural India. And the reason behind it is the ease of enrolment and simple-to-invest schemes. Anyone looking for a risk-free investment portfolio can invest in these schemes.
Long-term investments – Post Office schemes are long-term policies like retirement policies and they allow investors the opportunity to save for the long term. Hence, they suit well for pension and other long-term goals.
Investors can choose from a bucket of products – The Schemes are available in a wide range depending on the various types of individuals. The government offers some beneficial small savings schemes through post offices to allow common people the opportunity to invest in them as per their requirements.
Good interest rate – An investor under the Post Office Saving Scheme can get an interest rate ranging from 4 to 9% depending on the scheme. These schemes are risk-free and they come under the undertaking of the government of India.
Tax exemption – Tax rebate is also available under most of the schemes u/s 80C of the Income Tax Act 1961 on the invested amount. There are some schemes which also offer tax exemption on the interest earned.

10 Post Office Savings Schemes and Interest Rates

Investors in India have access to a variety of deposit and post office savings schemes. Post Office Savings Account, Public Provident Fund, Kisan Vikas Patra, and Sukanya Samriddhi Account are just a few examples of these.

1. Post Office Savings Account (SB)

The Post Office Savings Account (SB) is comparable to any savings account offered by a retail bank. The minimum deposit amount is ₹500 and the minimum withdrawal amount is just ₹50. It offers a 4% interest rate. A savings bank account can be opened by both adults and minors. There is no maximum investment amount and a tax exemption of up to ₹10,000.
Post Office Savings Scheme Account Interest Rates, Tenure, and Tax Benefits 2024

2. National Savings Recurring Deposit Account (RD)

RD stands for Recurring Deposit, which essentially, as the name suggests, is money deposited in an account in a recurring manner. It therefore, implies that this is a post office monthly saving scheme intended to encourage regular saving and investment habits among people. The plan is designed to facilitate investments monthly and promises good returns.
Post Office Recurring Deposit (RD) Interest Rates, Tenure, and Tax Benefits 2024

Also Read: Post office RD online payment

3. National Savings Time Deposit Account (TD)

This is another savings account that offers four account types with different maturity periods. The interest of this account is paid annually while it is calculated every quarter. Here are some features of the account:
National Savings Time Deposit Account Interest Rates, Tenure, and Tax Benefits 2024

4. National Savings Monthly Income Account (MIS)

A post office savings programme called the National Savings Monthly Income Account (MIS) offers a 6.6% interest rate. The smallest investment allowed is ₹1,000. The maximum investment amount for individual accounts is 4.5 lakhs, and for joint accounts it is 9 lakhs.
National Savings Monthly Income Account Interest Rates, Tenure, and Tax Benefits 2024

5. Senior Citizens Savings Scheme Account (SCSS)

Any person over the age of 60 may open a Senior Citizens Savings Scheme Account (SCSS) through the post office. However, retired government workers over the age of 55 and retired military personnel over the age of 50 are also permitted to open such accounts. The required minimum investment is ₹1000 rupees, and the maximum investment amount is 15 lakhs. The interest rate, which is set at 8.2%, is also very lucrative.
The scheme is specially run for the elderly in the country to help them lead a comfortable life post retirement. The senior citizens are allowed to earn interest on the lump sum investment every quarter. The scheme has government support and therefore the risk involved is negligible.

Senior Citizen Savings Scheme Interest Rates, Tenure, and Tax Benefits 2024

Also Read: LIC senior citizen scheme

6. Public Provident Fund Account (PPF)

With a minimum deposit of ₹500, the PPF account offers an alluring long-term investment option for Indian adults. The maximum deposit per fiscal year is ₹1.5 lakhs. A PPF account has an interest rate of 7.1%.
Public Provident Fund (PPF) Account Interest Rates, Tenure, and Tax Benefits 2024

7. Sukanya Samriddhi Account (SSA)

A unique government programme called the Sukanya Samriddhi Account (SSA) was created in India to empower young girls. It has a 8% interest rate, a ₹250 minimum deposit requirement, and a maximum investment cap of ₹1.5 lakhs per fiscal year.
Considered the best policy for girl child, the Sukanya Samriddhi Account or SSA is backed with government support particularly for girl child in India. This post office tax saving scheme for girl child is specifically designed by the government to support the educational, marriage and other future financial expenses of girls in India.

Note that there is also a post office scheme for boy child. Among the many options, the Ponmagan Podhuvaippu Nidhi Scheme is popular; however, it is only available currently in the post office branches of Tamil Nadu and Pondicherry.

Sukanya Samriddhi Yojna Interest Rates, Tenure, and Tax Benefits 2024

Also Read: Sukanya samriddhi yojana interest rate 2024

8. National Savings Certificates (NSC)

Any post office will sell National Savings Certificates for a price starting at ₹1000. There is no upper limit, and the attractive annual interest rate of 7.75% is offered.
This is another very popular scheme that is designed to offer income tax benefits to both salaried professionals and businessmen. The main feature of NSC is that it has no maximum investment limit. Check out the other features below:

National Savings Certificates (NSC) (VIIIth Issue) Interest Rates, Tenure, and Tax Benefits 2024

9. Kisan Vikas Patra(KVP)

Any Indian adult can open a KVP individually or jointly under the new Kisan Vikas Patra scheme, provided they have a minimum balance of ₹1,000. The offered interest rate is 7.5%.
KVP is a risk-free and fixed-rate small savings plan that allows the investor to save and accumulate wealth over time without any worry. Here are some features:

Kisan Vikas Patra (KVP) Interest Rates, Tenure, and Tax Benefits 2024

10. Mahila Samman Savings Certificate

This is a one-time scheme available for two years, from April 2023 to March 2025. This is a risk-free scheme especially crafted for girls and women of all ages. Here are the features:
Mahila Samman Savings Certificate Interest Rates, Tenure, and Tax Benefits 2024

Best Post Office Scheme and Interest Rates for 2024

Checkout the below table, representing the 10 best Post Office Saving Schemes and their respective Interest Rates 2024:

How to Apply for a Post Office Savings Scheme?

Below are the easy steps to apply for post office savings schemes:

Offline by Visiting Branch
First you need to visit the nearest post office branch
Ask for the form of the particular scheme that you want to invest in. Alternatively, you can download the form from the Indian Post website
Now, fill in the details required in the form correctly and submit the same along with your KYC details and photographs, etc.
Once done, complete the process of enrolment by depositing the amount as per the requirement of the chosen plan.
Through Internet Banking
Go to the official portal of the Department of Posts (DOP)
Click on ‘New User Activation’
Here, you have to enter your ‘Account ID’ and your ’Customer ID’ to proceed ahead by clicking on the ‘Continue’ button. If your Internet banking is not activated, you must activate it by filling out an activation form
Once online banking is active, submit the ID and password to log in
Click on the button of the ‘General Service’ and proceed by clicking on the ‘Service Request’ button
Now, click on the ‘New Requests’ button under the ‘Service Request’ section
Choose the type of scheme you want to invest in from the options available
Submit the required details on the scheme application form. Now, click on the ‘Submit’ button to join the scheme
Through Mobile App
First, you need to download the India Post Mobile Banking app from the Google Play Store and log in to it
Once you log in successfully, go to the home page and select the ‘Requests’ button to open a post office savings account
Submit essential details like deposit amount, term of scheme, nominee, etc. to open the account

Documents Required for Post Office Savings Scheme

Below are the required documents needed to open a post-office savings scheme in India:

Application Form (plan specific)
KYC Form
PAN
Aadhaar
Driving license
Voter’s ID card
Job card
Proof of DOB or date of birth