Post Office Savings Schemes 2025: Secure Investments with Attractive Interest Rates:

Post Office Offers: The Post office provides a great option where one can save money at a Post office Savings Account without any risk and a guaranteed income due to its convenience. One can open a Post Office Savings Account with an nearby Post Office. The Post Office Savings Account benefits the account holder with an annual interest of 4 percentage. Post Office Savings account can be opened with single or multiple account holders as joint.

Saving account can be opened with the initial deposit of ₹500

Based on the information available on post office portal, one can open a saving account with a minimum balance of Rs 500. An account needs a candidate nomination verifier during the account creation process. There is no upper limit defined for an individual account. Money deposited in the account earns interest which is calculated twice a month on the balance and the tenth day and the end of month. Interest for the account is offered at the closure of the financial year. The interest will be based on the rate set by Ministry of Finance.

You must also understand that the interest payment for the month prior to account closure will be paid if the account is closed. According to The Income Tax Act 80TTA, an interest accumulated on a savings account up to Rs 10,000 in a financial year is tax-free.

Post Office Savings Schemes Interest Rates Comparison

Scheme Interest Rate (Applicable from 01/04/2025) Minimum Investment Maximum Investment Eligibility Investment Tax Benefits

Post Office Savings Account 4% per annum (p.a.) Rs. 500 No limit taxpayer for residents of india: Tax-free Interest paid on deposit for citizens above fifty years is upto 50,000.

Post Office Time Deposit Account (TD) One year- 6.9% p.a. and compounded quarterly. Two years – 7.0% p.a. Three years – 7.1% p.a. Five years -7.5% p.a. of the outstanding balance. Compounded Quarterly With an initial deposit of 1,000 and no limit for subsequent deposits Indian resident, minor and major tax benefits only after holding the deposit for five years under section 80C.

- The income earned from interest needs to be declared as taxable.

- Tax Deducted at Source (TDS) is applicable on interest earned over Rs 40,000 p.a. (or Rs 50,000 in the case of a senior citizen).

Post Office Monthly Income Scheme Account (MIS)
7.4% per annum payable monthly
Rs 1,000
For single account: Rs 9 lakh
Joint accoounts: Rs 15 lakh

- A resident Indian citizen, a minor above the age of 10, and an adult individual can hold it jointly.

- There is also a tax consideration according to section 80C for the deposits made.

- Income from interest earned is subject to tax.

- Tax Deduction on TDS will be executed when interest earned surpasses Rs 50,000 per annum.

Senior Citizen Savings Scheme (SCSS)
8.2% per annum (Compounded Quarterly)
Rs 1,000
Lifetime maximum at Rs 30 lakh deposits
Eligible Individuals age >60, or >55 and <60, if a retired civilian or defense or employee

- Also a tax benefit under Section 80C for the deposited amount.

15-year Public Provident Fund Account (PPF)
7.1% per annum (Compounded annually)
500 Rs per FY
1.5 lakh per FY
Indian residents, children and adults

- Tax deduction under 80C, but only one and a half lakh per year.

Earnings accrued via interest does not fall under tax.

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) Per Subscribed door of Rs 250 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

A savings account in the post office can be opened with a minimum deposit of Rs 500 which should be in multiples of Rs 10. The highlight of this account is, in contrary to other accounts, you can withdraw a minimum amount of Rs 50 from it. But do keep in mind that if you have less than Rs 500 in your account, you cannot withdraw. If during the financial year your balance in the account does not cross 500, the balance at the end of the financial year will be charged to maintenance fee of 50.

Simultaneously, the account will automatically close if the balance reaches zero.

PO Savings Account: The following are included

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)

In order to obtain these facilities, you must complete the form and submit it at your branch. This account should be understood that in case there is no deposit or withdrawal in the account for a period of three consecutive financial years, then the account will be deemed silent, or dormant.