India Post, which controls the postal chain of the country, also provides several deposit avenues for investors, commonly known as post office saving schemes. These schemes were introduced to provide investment avenues and inculcate savings discipline among Indians from across economic classes. Every post office provides these savings schemes to enable individuals from across India to apply and enrol easily.

What’s on offer via IVR?

The IVR facility, for now, is available in two languages, Hindi and English.

The toll-free number to dial is 18002666868, as per the statement from the Department of Posts.

It is available for customers who have parked their savings in small savings schemes including NSC (National Savings Certificate), PPF (Public Provident Fund) and MIS (Monthly Income Scheme).

You as a customer can get all your inquiries related to your account, current balance, interest earned, tax deducted, block your ATM card or cheque and even get the transaction details.

Postal savings schemes information

One can also know about postal savings products through this IVR facility.

Alternatively, you can check these products on the India Post website as well. To give you an idea, here is a look at the postal savings schemes available.

Types of Savings Schemes Available

Presently, the government provides 9 postal saving schemes for investment by the general masses. They are enumerated below.

Invest in elss funds

Public Provident Fund (PPF)

PPF is one of the preferable schemes and is available with a lock-in period of 15 years. Nonetheless, investors can avail partial withdrawal after 5 years. A minimum deposit of Rs. 500 per year is required to keep the account active.

National Savings Certificate (NSC)

You can invest in NSC with a small deposit amount of Rs. 100 as a single individual, jointly or as a guardian of a minor. The lock-in period for this scheme is 5 years. Also, the annual interest on NSCs is re-invested and paid out as an accumulated amount at the time of maturity.

Post Office Monthly Income Scheme 

This post office monthly savings scheme is another reliable savings instrument that allows you to invest a maximum of Rs. 4.5 Lakh individually and Rs. 9 Lakh jointly. As an MIS plan, it allows investors to generate a steady monthly income.

Sukanya Samriddhi Account

SSY Scheme Under this Indian post office saving scheme, parents or legal guardians of any girl child up to 10 years of age are eligible to open this account in the child’s name. A maximum of 2 accounts is allowed for a household for two daughters individually. Once the child reaches 21 years of age, she is eligible to claim the maturity amount.

The maturity of the account also differs as per the girl child’s age on the date of enrolment. Thus, with a limit of up to 10 years of age, the maturity term will be accordingly extended from 21 years of age. Like, if the child was 5 years old on the date of enrolment, the year of maturity will be 21 years + 5 years, i.e., 26 years.

Senior Citizen Savings Scheme

Investors who are 60 years old, or 55 years old in case of voluntary retirement, can deposit up to Rs. 15 lakh over their lifetime in a Senior Citizen Savings Scheme to earn regular interest income. The plan also comes with a lock-in period of 5 years.

Post Office Savings Account

You can also open a savings account with the post office, which is similar to savings accounts opened with banks, by depositing a minimum of Rs.20. Also, you must maintain the account with a minimum of Rs.50. India Post also allows you to transfer money in your post office savings account online.

5-Year Post Office Recurring Deposit Account

With small monthly investments, you can opt for as many RD accounts as you want with a post office. These investment options allow you to make periodic deposits while enabling substantial corpus creation over the tenure of investment.

Post Office Time Deposit Account

You can also open time deposits as a post office saving scheme for 1, 2, 3 and 5 years of tenure. Even minors over 10 years of age can invest in time deposits along with a guardian. The savings option is similar to fixed deposits offered by banks.

Kisan Vikas Patra (KVP)

KVP certificates allow you to earn double the deposit amount in 9 years and 10 months. Also, the deposit can be enchased only after 2.5 years against the payment of a nominal penalty.

A Comparative Study of Interest Rate and Taxability on Different Savings Schemes

Post Office Savings Product Basic details Interest rate per annum
Savings Account
  • Minimum deposit amount of Rs 500
  • Minimum withdrawal limit of Rs 50
  • Interest amount credited at the end of every financial year
Recurring Deposit
  • Minimum deposit amount of Rs 500 and in multiples of Rs 10 thereof
  • Lock-in period of 5 years. Premature withdrawal is allowed only after 3 years
  • RD account can be extended for another 5 years at the time of maturity
  • Loan (against RD) facility is available
5.8% (compounded quarterly)
Time Deposit (TD)
  • Minimum deposit amount of Rs 1,000 and in multiples of Rs 100 thereof
  • Interest payable annually but is calculated every quarter
  • Time deposit is available for 1, 2, 3 and 5 years
  • Extension of deposit is available but vary with each maturity
  • Premature withdrawal is allowed but comes with a penalty
  • The receipt of TD can be pledged as a security for borrowing
1yr TD: 5.5%

2yr TD: 5.5%

3yr TD: 5.5%

5yr TD: 6.7%

Monthly Income Scheme (MIS)
  • Minimum amount of Rs 1,000 and in multiples of Rs 100 thereof, maximum up to Rs 4.5 lakh (in case of joint account Rs 9 lakh maximum)
  • Lock-in period of 5 years
  • Premature closure of account or withdrawal is allowed by there will be penalty up to 2% of principal amount will be deducted
  • Interest payable every month
Public Provident Fund (PPF)
  • Minimum amount of Rs 500 and in multiples of Rs 50 up to a maximum of Rs 1.5 lakh in a financial year
  • Interest is credited at the end of every financial year and the interest earned is tax free
  • Lock-in period or period of maturity is 15 years and interest is paid along with principal
  • There is an option to extend the account for another 5 years
  • Loan (against PPF) facility is available
  • Premature closure is available only after 5 years only in case of a genuine (listed) need. Penalty up to 1% of interest will be deducted
  • A subscriber is allowed once to withdraw before maturity but subject to certain conditions
7.1% (compounded quarterly)
National Savings Certificate (NSC)
  • 5 years years NSC (VIII issue)
  • Minimum amount of Rs 1,000 and in multiples of Rs 100 thereof with no maximum limit
  • Deposits qualify for deductions under 80C
  • NSC can be pledged as a collateral for loan with any banks and HFCs
  • NSC doesn’t have the option of premature closure except in case of death of the depositor, or forfeiture of pledge or by the order of Court
  • Interest payable at maturity
6.8% (compounded annually)
Kisan Vikas Patra (KVP)
  • Minimum amount of Rs 1,000 and in multiples of Rs 100 thereof with no maximum limit
  • Amount to be invested for 10 years and 24 months (maturity period prescribed by the Ministry of Finance from time to time)
  • Pledge of this certificate is allowed
  • Premature closure is available, subject to certain conditions
6.9% (compounded annually)
Sukanya Samriddhi Accounts (SSA)
  • Minimum amount of Rs 250 and in multiples of Rs 50 thereof. Maximum up to Rs 1.5 lakh in any financial year can be deposited.
  • Account to be opened by the Guardian in the name of the girl child (aged less than 10 years) 
  • This account can be opened for a maximum of two girls in the family
  • Deposits can be made up to 15 years from the date of opening account
  • Interest earned is tax free
  • Premature closure is allowed but subject to certain conditions
  • Interest payable on a yearly basis
7.6% (compounded annually)
Senior Citizen Savings Scheme (SCSS)
  • It is for individual above 60 years of age
  • Minimum deposit Rs 1,000 and in multiples of Rs 1,000 up to a maximum of Rs 15 lakh
  • Premature closure is allowed subject to certain conditions
  • Interest payable every quarter

You can avail any post office saving scheme if you prefer to invest in risk-free avenues with high returns.

Benefits of Post Office Savings Schemes

The saving schemes offered by India Post share some common features and benefits. Here are some generic features you should know.

  • Risk-free and reliable

Regardless of any related parameters, all post office savings schemes are government-backed. Thus, they are considered risk-free investment options to park your funds.

  • Attractive return generation

The Ministry of Finance updates the interest rates of the post office saving scheme in every 3 months. Presently, the next interest review is due in March 2020. Nonetheless, the interest rate updates range between 4-9%, thus allowing investors to receive substantial returns.

  • Simple investment process

Minimal documentation and simple application procedures offered by the post office provide you with easy enrolment to any of the saving schemes.

  • Long term investments

Most of the post office saving schemes are long term investments which can run up to 15 years. A long tenure, such as with PPF, allows an investor to accumulate sizeable fund over time. Thus, they can be considered as effective plans for financial security as well as retirement benefits.

  • Availability to investors across the economic strata

Postal investments are designed to cover investors from every corner of the country and across different economic strata. With 1.55 lakh post office branches, from rural to urban, every Indian citizen can avail these schemes.

  • Tax benefits

Tax efficiency is another highly acknowledged feature of post office saving scheme. Some of the schemes such as National Saving Certificates come with tax exemptions on deposit amount under Section 80C. Also, some schemes like Kisan Vikas Patra offer tax deductions on the earned interest.

  • Various types of product

Indian post saving scheme options are spread across different types of savings and investment products to cater to various investors. The financial products are – savings deposit, recurring deposit, fixed deposit, monthly scheme, saving certificates, etc. Investors can choose from these options as per their financial goals.

Who can Invest in Post Office Saving Schemes?

Investors who prefer a no-risk investment portfolio along with substantial return generation can opt for these postal schemes. Saving parkways like National Savings Certificates, Sukanya Samriddhi Accounts, and PPF come with attractive interest rate and zero financial risks. Also, the minimum investment amount is low and affordable; so investors from lower economic classes can also look forward to investing in these schemes.

How to Apply for a Post Office Saving Scheme?

You can apply for any of the post office saving schemes with the following steps-

  • Step 1

Visit your preferred post office branch.

  • Step 2

Obtain the relevant account opening form for the chosen scheme from your nearest post office. Nonetheless, you can also download these forms online from India Post’s official website.

  • Step 3 

Fill up the form with necessary details and submit it along with your KYC proof and photographs, and other documents if required as per your post office saving scheme.

  • Step 4

Complete enrolment by depositing the required amount as per your chosen investment scheme.


  • Is it safe to invest in a savings scheme with the post office?

Yes, India Post is a government-backed organisation, and thus a credible and reliable institution to invest with. Also, you can choose any of the post office saving schemes with entirely zero financial risk.

  • Do the post office schemes provide tax benefits?

Yes, you can avail tax exemptions and deductions on your investments in post office schemes. With a few schemes, tax is deducted either on the deposit amount, or the earned interest or both.

  • Can I withdraw money from any branch of the post office?

Yes, similar to withdrawals via banks, you are allowed to withdraw money from any post office branch across the country.

mutual fund investment
Mutual Fund Calculator
Lumpsum Calculator
PPF Calculator
EMI Calculator
Mutual Fund Return Calculator
EPF Calculator
Car Loan EMI Calculator
SWP Calculator
Gratuity Calculator
Personal Loan EMI Calculator
Sukanya Samriddhi Yojana Calculator
HRA Calculator
Home Loan EMI Calculator
FD Calculator
CAGR Calculator
SBI EMI Calculator
RD Calculator
GST Calculator
SBI Personal Loan EMI Calculator
NPS Calculator
HDFC EMI Calculator
SBI Home Loan EMI Calculator
Simple Interest Calculator
HDFC Personal Loan EMI Calculator
SBI PPF Calculator
Compound Interest Calculator
HDFC Home Loan EMI Calculator
SBI RD Calculator
Interest Rate Calculator
HDFC FD Calculator
SBI SIP Calculator
HDFC RD Calculator
SBI FD Calculator