Post Office Saving Schemes Complete Guide

A detailed guide to all Post Office Saving Schemes – interest rates, features, eligibility, tax benefits and how to open accounts in India Post.

What Are Post Office Saving Schemes?

Post Office Saving Schemes are government-backed financial products offered by India Post. They are some of the safest investment options in India, known for:

  • Guaranteed returns
  • Attractive interest rates
  • Long-term stability
  • Low risk (100% government backed)
  • Easy to open and operate through post offices

Latest Interest Rates (2024–2025)

Scheme Interest Rate Lock-in / Tenure
Savings Account 4.0% No lock-in
Recurring Deposit (RD) 6.7% 5 years
Time Deposit – 1 Year 6.9% 1 year
Time Deposit – 5 Years 7.5% 5 years
Monthly Income Scheme (MIS) 7.4% 5 years
Senior Citizens Savings Scheme (SCSS) 8.2% 5 years
PPF (Public Provident Fund) 7.1% 15 years
NSC (National Savings Certificate) 7.7% 5 years
Kisan Vikas Patra (KVP) 7.5% Maturity in ~115 months

1. Public Provident Fund (PPF)

One of India’s most popular tax-saving schemes with EEE benefits.

  • Interest: 7.1%
  • Lock-in: 15 years
  • Tax benefit under Section 80C
  • Loan and partial withdrawal allowed

2. Monthly Income Scheme (MIS)

Gives guaranteed monthly interest income.

  • Interest: 7.4%
  • Tenure: 5 years
  • Ideal for retirees and stable income seekers

3. Senior Citizens Savings Scheme (SCSS)

Best for senior citizens with high interest rate.

  • Interest: 8.2%
  • Lock-in: 5 years
  • Quarterly interest payout

4. National Savings Certificate (NSC)

Safe investment with guaranteed returns.

  • Interest: 7.7%
  • Lock-in: 5 years
  • Eligible for Section 80C tax benefit

5. Recurring Deposit (RD)

Perfect for disciplined monthly savings.

  • Interest: 6.7%
  • Tenure: 5 years
  • Quarterly compounding

6. Time Deposits (Fixed Deposits)

Choose between 1, 2, 3 or 5 years.

  • Interest up to 7.5%
  • Safe, guaranteed returns
  • Annual compounding

7. Kisan Vikas Patra (KVP)

Doubles money in approximately 115 months.

  • Interest: 7.5%
  • Guaranteed maturity
  • No tax benefit

How to Open a Post Office Savings Scheme?

Option 1 – Visit Post Office

Carry ID proof, address proof, and passport-size photograph.

Option 2 – Open Online (Available for selected schemes)

You can use the India Post internet banking portal (for PPF, RD, MIS etc.).

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