Post office investment schemes are backed by the government and often offer competitive interest rates, making them a popular choice among investors. With their reliability, accessibility, and stability, post office schemes have become an attractive option for you seeking secure investment avenues.
Whether you are a risk-averse investor or looking to diversify your portfolio with low-risk options, these post office schemes can help you achieve your financial goals.
Quick Comparison of Post Office Savings Schemes with Interest Rates
| Post Office Investment Scheme | Interest Rate (Applicable from 01/04/2023) | Minimum Investment | Maximum Investment | Investment Tenure |
| Post Office Savings Account (SB) | 4% per annum | Rs. 500 | No limit | NA |
| 5 Year Post Office Recurring Deposit Account (RD) | 6.2% p.a. (quarterly compounded) | Rs. 100 per month | No limit | 5 Years (60 monthly deposits) |
| 5 Year Post Office Time Deposit Account (TD) | 1 year – 6.8% p.a. 2 years – 6.9% p.a. 3 years – 7% p.a. 5 years – 7.5% p.a. | Rs 1,000 | No limit | 1,2,3, or 5 years |
| 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 | 5 Years |
| Senior Citizen Savings Scheme (SCSS) | 8.2% p.a. (Compounded annually) | Rs 1,000 | Maximum deposit over the lifetime allowed at Rs 30 lakh | 5 Years |
| 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 | 15 Years |
| Sukanya Samriddhi Accounts (SSA) | 8% p.a. (Compounded annually) | Rs 250 per financial year | Rs 1.5 lakh per financial year | 15 Years |
| National Savings Certificates (NSC) | 7.7% p.a. (compounded annually) | Rs 1,000 | No limit | 5 Years |
| Kisan Vikas Patra (KVP) | 7.5% p.a. (compounded annually) | Rs 1,000 | No limit | 115 months (9 years & 7 months) Tenure varies with the variation in the interest rate. |
| Mahila Samman Savings Certificate, 2023 | 7.50 % per annum (compounded quarterly) | Rs. 1000 | Rs. 2,00,000 | 2 Years |
If you want to invest in the stock market you can check out our research report on top 20 stock brokers in India 2023.
10 Best Investment Scheme in Post Office 2023
#1. Post Office Savings Account (SB)
The Post Office Savings Account is a savings bank account offered by post offices. It offers 4% interest rates on both individual and joint saving accounts. The interest earned is credited at the end of each financial year.
To enjoy the benefits of this account, you need to maintain a minimum balance of Rs. 500. In case the minimum balance requirement is not met, an annual charge of Rs. 50 will be deducted from your account.
Additionally, you can avail of a cheque book, passbook, ATM card, e-banking and mobile banking services to access your account.
Who can open
- A single individual
- Two adults only (Joint A or Joint B)
- A guardian on behalf of a minor/ person of unsound mind
- A minor above 10 years in their own name
It’s important to note that
- Nomination is mandatory at the time of opening the account.
- When a minor attains majority, a minor must submit a fresh account opening form and KYC documents to convert the account into their name.
Investment Amount
| Minimum Investment | Rs. 500 (subsequent deposit not less than Rs. 10) |
| Maximum Investment | No limit |
Withdrawal Limits
| Minimum withdrawal amount | Rs. 50 |
| Through ATM | Rs. 25,000 with Rs. 10,000 per transaction |
Tax Exemption
You can avail up to Rs 10,000 deduction from the total income under Section 80TTA of the Income Tax Act.
#2. 5 Year Post Office Recurring Deposit Account (RD)
The 5-Year Post Office Recurring Deposit Account (RD) offers a secure and disciplined savings option with a fixed tenure of five years. By saving regularly each month, you can benefit from a competitive interest rate of 6.2%, compounded quarterly.
Additionally, after completing 12 installments without defaulting, you have the option to avail a loan of up to 50% against the deposit available in the account.
To open this account, simply fill out a Purchasing Certificate Form and start your journey towards systematic savings with the Post Office.
Who can open
- A single adult
- Joint Account (up to 3 adults) (Joint A or Joint B))
- A guardian on behalf of minor/ person of unsound mind
- A minor above 10 years in his own name.
Key Features
| Rate of Interest | 6.2 % per annum (quarterly compounded) |
| Tenure | 5 Years (60 monthly deposits) |
| Minimum Investment Amount | Rs. 100 per month |
| Maximum Investment Amount | No Limit |
| Premature Withdrawal | After 3 years of opening of the a/c |
| Tax Exemption | Upto Rs. 1.5 lakh annual exemption allowed to you under Section 80C of the ITA Interest income is taxable. |
#3. Post Office Time Deposit Account (TD)
The National Savings Time Deposit Account (TD) is a tenure-based fixed deposit account offered by the post office. With no upper investment limits, this account requires a minimum investment of Rs. 1,000.
You can not withdraw the deposits before the expiry of six months from the date of deposit.
The post office interest rates are determined by the Finance Ministry every quarter. The interest is calculated quarterly but is payable on an annual basis. The account also provides interest rates ranging from 6.80% to 7.50% based on different periods.
You can earn Rs. 37500 monthly through time deposit by investing 50 lakhs in India. You may like to read how much monthly income can you earn by investing 50 lakhs.
Investment Tenure
| Period | Rate of Interest |
| 1 year account | 6.8% |
| 2 year account | 6.9% |
| 3 year account | 7% |
| 5 year account | 7.5% |
On the date of maturity, you can also reinvest the maturity amount for different deposit tenure at the new applicable interest rates.
Who can open
- A single adult
- Joint Account (up to 3 adults) (Joint A or Joint B))
- A guardian on behalf of minor/ person of unsound mind
- A minor above 10 years in his own name.
Key Features
| Minimum Investment Amount | Rs. 1000 |
| Maximum Investment Amount | No Limit |
| Premature Withdrawal | After six months Interest will be calculated at 2.0% less for premature withdrawal after 1 year. |
| Tax Exemption | Claim under Section 80C of the Income Tax Act. |
#4. Post Office Monthly Income Scheme Account (MIS)
Post Office Monthly Income Scheme (POMIS) allows you to invest a lump sum amount and earn a fixed interest of 7.40% every month. POMIS is backed by the Indian government savings scheme, making it a safe and secure investment option.
You can earn a regular monthly income by depositing up to Rs. 15 lakhs for a joint account or Rs. 9 lakhs for a single account. You can apply the POMIS plan from the post office with a minimum amount of Rs. 1,000.
The maturity period for the MIS account is 5 years. After maturity, you can reinvest for another five years.
However, it’s important to note that premature closure of the Post Office Monthly Income Scheme Account (MIS) is not permitted within the first year of opening.
In the event of closing the account between 1 to 3 years, a deduction of 2% from the principal amount will be applicable. For closures between 3 to 5 years, a deduction of 1% will be applied.
In case of the depositor’s unfortunate demise before the maturity period, nominees can file a claim to receive the accrued amount.
Eligibility criteria for POMIS Account
- A single adult
- Joint Account (up to 3 adults) (Joint A or Joint B))
- A guardian on behalf of minor/ person of unsound mind
- A minor above 10 years in his own name.
Key Features
| Rate of Interest | 7.40% per annum payable monthly. |
| Tenure | 5 Years |
| Minimum Investment Amount | Rs. 1000 |
| Maximum Investment Amount | For single account – Rs. 9 lakh For joint account – Rs. 15 lakh |
| Premature Withdrawal | Not allowed before one year. After that 2% deduction from the principal amount from one year to three years and 1% from three to five years. |
| Taxation | Interest income is taxable. |
#5. Senior Citizens Savings Scheme (SCSS)
The Senior Citizen Saving Scheme (SCSS) is a government-backed savings scheme in India specifically designed for senior citizens aged 60 years and above.
The scheme aims to offer financial security and regular income to senior citizens during their retirement years. Under the SCSS, you can invest a lump sum amount and earn a fixed interest rate of 8.2% on your investment.
The scheme has a maturity period of five years, which can be further extended for an additional three years if desired. The interest is payable on a quarterly basis.
You can also invest in NPS (National Pension System) online to save your future and earn a steady stream of income after you retire.
Eligibility criteria for opening a Senior Citizen Saving Scheme (SCSS) account
- Senior citizen above 60 years of age.
- Retired Civilian Employees between the ages of 55 and 60 are eligible, provided they invest within one month of receiving their retirement benefits.
- Retired Defense Employees between the ages of 50 and 60 can open an account within one month of receiving their retirement benefits.
Key Features
| Rate of Interest | 8.20% per annum payable quarterly. |
| Tenure | 5 Years |
| Minimum Investment Amount | Rs. 1000 |
| Maximum Investment Amount | Rs. 30 Lakhs |
| Premature Withdrawal | If the account closed before 1 year – no interest will be payable and if any interest paid in account shall be recovered from principle. After that 1.5% deduction from the principal amount from 1 to 2 years and 1% from 2 to 5 years. |
| Taxation Exemption | Under Section 80C of Income Tax Act, 1961, you can claim for tax deduction if the interest earned on the amount is below Rs. 50,000 in a financial year. |
#6. 15-Year Public Provident Fund Account (PPF)
The Public Provident Fund Account (PPF) is a popular long-term savings and investment scheme offered by the Government of India. It provides a risk-free investment option with guaranteed returns and a competitive interest rate of 7.10% per annum.
The interest earned is credited to your account at the end of the financial year. You can invest a minimum of Rs. 500 and a maximum of Rs. 1.5 lakhs in a financial year in your PPF account.
The PPF account has a fixed maturity period of 15 years. Additionally, you can extend the account after maturity for five years.
Partial withdrawals are allowed after five years of the account opening. You can withdraw the amount up to 50% of the balance at the end of the 4th preceding year or the end of the preceding year, whichever is lower.
If you are a salaried person, you may like to read how much salary should you invest for better monthly income return.
Eligibility criteria for PPF Account
- An individual adult by a resident Indian.
- A guardian can open the account on behalf of a minor or a person of unsound mind.
Note – You can only open one PPF account across the country either in the Post Office or any Bank.
Key Features
| Rate of Interest | 7.1 % per annum (compounded yearly) |
| Tenure | 15 Years |
| Minimum Investment Amount | Rs. 500/- |
| Maximum Investment Amount | Rs. 1,50,000/- in a financial year. |
| Premature Withdrawal | Partial withdrawals are allowed after five years of the account opening. |
| Taxation Exemption | Under Section 80C of Income Tax Act, 1961, you can claim for tax deduction for interest earned below Rs. 1.50 lakh per financial year. |
#7. Sukanya Samriddhi Account (SSA)
The Sukanya Samriddhi Account (SSA) is a government-backed savings scheme introduced by the Government of India to promote the financial security and welfare of the girl child. This scheme aims to encourage parents to save for their daughter’s future education and marriage expenses.
The SSA offers an 8% interest rate, which is higher than most other savings schemes and the interest is compounded annually.
The minimum deposit required to open an SSA account is Rs. 250, and a maximum of Rs. 1.5 lakhs can be deposited in a financial year. Contributions to the account can be made until the completion of 15 years from the date of account opening.
The SSA account matures after 21 years from the date of opening or earlier if the girl child gets married after attaining the age of 18. On maturity, the account holder receives the accumulated amount along with the accrued interest.
Additionally, the SSA account provides tax benefits under Section 80C of the Income Tax Act.
Who can open the SSA account
- The guardian can open an account in the name of a girl child who is below the age of 10 years.
- Only one account can be opened in India, either in a Post Office or any bank, specifically in the name of a girl child.
- A maximum of two girls in a family can have this account. However, in the case of twins or triplets, more than two accounts can be opened to accommodate each girl child.
Key Features
| Rate of Interest | 8 % per annum (compounded yearly) |
| Tenure | 15 Years |
| Minimum Investment Amount | Rs. 250/- |
| Maximum Investment Amount | Rs. 1,50,000/- in a financial year. |
| Premature Withdrawal | Partial withdrawals are allowed after the girl attains 18 years of age, with up to 50% of the balance. |
| Taxation Exemption | Under Section 80C of Income Tax Act, 1961, you can claim for tax deduction for interest earned below Rs. 1.50 lakh per financial year. |
#8. National Savings Certificates (NSC)
National Savings Certificates (NSC) are fixed-income savings instruments offered by the Government of India. NSCs serve as a secure investment option for you who seek guaranteed returns and capital protection.
When you purchase an NSC, you make a fixed investment for a specified period, typically five or ten years. These certificates are available in various denominations, starting from as low as Rs. 1000.
The interest rate on NSCs is set by the government and compounded annually. Currently, the interest rate stands at 7.70 % per annum.
The NSC interest earned is eligible for tax deductions under Section 80C of the Income Tax Act, up to a Rs. 150000/-. However, the interest income is subject to taxation.
Who can open
- A single adult
- Joint Account (up to 3 adults)
- A guardian on behalf of minor or on behalf of person of unsound mind
- A minor above 10 years in his own name.
Key Features
| Rate of Interest | 7.70 % per annum (compounded yearly) |
| Tenure | 5 Years |
| Minimum Investment Amount | Rs. 1000/- |
| Maximum Investment Amount | No limit |
| Premature Withdrawal | Premature closure is not allowed. |
| Taxation Exemption | Under Section 80C of Income Tax Act, 1961, you can claim for tax deduction for interest earned below Rs. 1.50 lakh per financial year. |
#9. Kisan Vikas Patra (KVP)
Kisan Vikas Patra (KVP) is a government savings scheme designed to promote long-term savings among individuals in India. When you invest in KVP, you purchase a certificate that represents your investment.
The minimum investment amount for KVP is Rs. 1,000, and there is no maximum limit. The certificates have a fixed maturity period, which is currently set at 115 months (9 years and 7 months).
The interest rate on KVP is determined by the Ministry of Finance and is compounded annually. Currently, the interest rate is 7.5% per annum.
One unique feature of KVP is that it doubles the invested amount on maturity. For example, if you invest Rs. 10,000 in KVP, you will receive Rs. 20,000 at the end of the maturity period. This makes KVP an attractive investment option for those looking to grow their savings.
KVP certificates can be easily purchased from post offices across India. They can also be transferred from one person to another, allowing for easy liquidity. However, premature withdrawal is allowed after 2 ½ years (30 months).
Kisan Vikas Patra provides a reliable investment avenue for you who prefer a low-risk savings option with guaranteed returns.
Who can open
- A single adult
- Joint Account (up to 3 adults)
- A guardian on behalf of minor or on behalf of person of unsound mind
- A minor above 10 years in his own name.
Key Features
| Rate of Interest | 7.50 % per annum (compounded yearly) |
| Tenure | 115 months (9 years & 7 months) Tenure varies with the variation in the interest rate. |
| Minimum Investment Amount | Rs. 1000/- |
| Maximum Investment Amount | No limit |
| Premature Withdrawal | After 2 years and 6 months from the date of deposit. |
| Taxation Exemption | Not eligible for tax deduction under section 80C of Income Tax Act. |
#10. Mahila Samman Savings Certificate, 2023
The Mahila Samman Savings Certificate is a small-savings scheme specifically designed for women. The purpose of this scheme is to provide secure and empowering investment opportunities.
The Mahila Samman Savings Certificate offers an attractive interest rate of 7.50% per annum, compounded quarterly.
The certificate has a fixed tenure of 2 years. The minimum investment amount required to open the certificate is Rs. 1000, while the maximum investment amount is Rs. 2,00,000, allowing flexibility based on your financial capabilities.
Partial Withdrawal
The scheme allows for partial withdrawals before maturity. You can make a partial withdrawal after 1 year from the opening of the account, but you can only withdraw up to 40% of the eligible balance.
Premature Closure
While the scheme has a maturity period of two years, there are certain circumstances in which you can close the account before maturity. These include:
- In the event of the account holder’s death.
- In cases of extreme compassion, such as life-threatening diseases or the guardian’s death. Relevant documents will be required in such cases.
- After 6 months from the date of opening the account, without providing any specific reason. However, in this case, the interest rate will be reduced by 2% and become 5.5%.
Eligibility criteria for Mahila Samman Savings Certificate
- A woman above 18 years of age can invest in this scheme by herself.
- By the guardian on behalf of a minor girl.
Key Features
| Rate of Interest | 7.50 % per annum (compounded quarterly) |
| Tenure | 2 Years |
| Minimum Investment Amount | Rs. 1000/- |
| Maximum Investment Amount | Rs. 2,00,000/- |
| Premature Withdrawal | You can withdraw only 40% of the deposited amount after 1 year. |
| Taxation Exemption | Not available information, May be tax levied as per your income tax slab rate. |
Steps to Open Post Office Savings Scheme
Step #1. You need to visit the nearest post office.
Step #2. Collect the relevant application form or you can download and print the relevant application form from the official website of the post office.
Step #3. Submit the completed application form along with the required KYC documents to the designated personnel.
Step #4. Make the minimum deposit amount required to open the account or scheme.
Step #5. The post office officials will verify your application and open your account. You will be provided with a passbook for the account.
Documents Required to Open Post Office Savings Scheme
- Account opening form
- KYC Form (for new customers or modification in KYC details)
- PAN Card, you may like how to apply for a PAN card online in India.
- Aadhaar card (If Aadhaar is not available, alternative documents such as passport, driving license, voter’s ID card, job card issued by MNREGA, or a letter from the National Population Register can be submitted)
- Proof of date of birth or birth certificate (in case of a minor account).
Frequently Asked Questions (FAQs)
The KVP is a government savings scheme with a 7.50% interest rate, compounded yearly. The investment amount doubles on maturity, and premature withdrawal is allowed after 2.5 years.
The Sukanya Samriddhi Account is a savings scheme for the girl child with an 8% interest rate, compounded annually. The minimum deposit required to open an account is Rs. 250.
Premature closure is not allowed before one year. After that, there is a deduction of 2% from the principal amount for closures between 1 to 3 years and 1% for closures between 3 to 5 years.
No, you can only open one PPF account across the country, either in the Post Office or any Bank.
The current interest rate for the Post Office PPF is 7.1% per annum.
The post office schemes offer the highest interest rates are as follows:
- Senior Citizen Savings Scheme (SCSS): Specifically designed for senior citizens, this scheme provides an highest interest rate of 8.2% per annum among the post office investment schemes.
- Sukanya Samriddhi Yojana (SSY): Designed for Women with 8% per annum interest rates.
- National Savings Certificate (NSC): This scheme also offers a competitive interest rate, currently at 7.7% per annum.
According to Budget 2023, for a single account, the maximum deposit limit is Rs. 9 lakhs, and for a joint account, it is Rs. 15 lakhs.
Premature withdrawal from the National Savings Certificate (NSC) is not allowed before maturity.
The interest rate on post office savings accounts is currently 4% per annum.
