Post Office Saving Schemes 2023: Post Office Investment-Scheme Types, Interest Rate, and Tax Benefits


9 min read

Updated on May 13, 2023

Search information about the best Post Office Saving Schemes 2023? Get complete details of some of the best saving plans operated by the Indian Post Office, along with the rate of interest and eligibility criteria for each.

A large population in our country lives in rural areas where financial planning isn’t really a priority. To encourage this section of society (the economically weak and downtrodden) to save a little for the future, the Indian Post Office has come up with a number of financial schemes. Here we look at some of these best post office schemes based on the interest rate and eligibility criteria to apply for each, to help you make an informed choice for investment in the best saving plan.

In fact, some of these plans are also designed specifically for women, children, and the elderly, to help them plan a better future for themselves and be able to meet their financial goals. Let’s take a look at some of these post office tax savings schemes.

What’s Inside

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.

Types of post office savings schemes

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.

2. National Savings Recurring Deposit Account (RD)

One of the well-known post office savings programmes that you can use is the National Savings Recurring Deposit Account (RD). It has a minimum monthly deposit requirement of ₹100 and an annual interest rate of 5.8%.

3. National Savings Time Deposit Account (TD)

The National Savings Time Deposit Account (TD), a tenure-based fixed deposit account with no upper investment limits, has a ₹1,000 minimum investment requirement. For a five-year period, this post office savings plan offers you an alluring 6.7% interest rate.

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.

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 7.4%, is also very lucrative.

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%.

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 7.6% interest rate, a ₹250 minimum deposit requirement, and a maximum investment cap of ₹1.5 lakhs per fiscal year.

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 6.8% is offered.

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 6.9%.

10. PM CARES for Children Scheme, 2021

If a child has lost both parents or the last surviving parent due to the COVID-19 pandemic, an account will be opened in the child’s name, and a one-time lump sum payment from the PM CARES fund will be made. The beneficiary will receive a monthly allowance of ₹4,000 until the age of 18 from the deposit of ₹10 lakh. They can then earn interest until the age of 23 on that sum of ₹10 lakhs according to the monthly income account scheme.

Best 10 Post Office Saving Schemes Interest Rates for 2023-24

Checkout the below table, representing the 10 best Post Office Saving Schemes and their respective Interest Rates 2023:

Sr. No. Post Office Savings Schemes Interest Rates Annually
1 Post Office Savings Account 7%
2 National Savings Recurring Deposit Account 3.25% – 8.00%
3 National Savings Time Deposit Account 7.50%
4 National Savings Monthly Income Account 7.40%
5 Senior Citizens Savings Scheme Account 8.20%
6 Public Provident Fund Account 7.10%
7 Sukanya Samriddhi Account 7.60%
8 National Savings Certificates (VIIIth Issue) 7.70%
9 Kisan Vikas Patra 7.50%
10 PM CARES for Children Scheme N/A

4 Best Post Office Investment-Scheme 2023 – Their Interest Rates, Tenure, Minimum Investment and Tax Benefits

#1. Recurring Deposit (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 2023

Type of Account Single, Joint (up to 3 adults allowed), minor (joint account with a parent/guardian) and independent minor a/c over 10 years old
Opening Procedure The applicant needs to open a National Savings Recurring Deposit Account at the Post Office by filling out a Purchasing Certificate Form
Rate of Interest 5.80% p.a. on both single and joint a/c payable upon maturity
Tenure 5 years
Investment Minimum – Rs. 100; Maximum – no limit
Type of Investment Monthly
Mode of Investment Cash/cheque/net banking
Premature Withdrawal After 3 years of opening of the a/c
Tax Exemption Upto Rs. 1.5 lakh annual exemption allowed to investors under Section 80C of the ITA; interest not tax-exempted

Also Read: Post office RD online payment

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#2. Savings Account:

Yet another of the best money saving plans, this one is backed by government support and is therefore preferred by a number of investors. Some of its top features are listed below.

Post Office Savings Scheme Account Interest Rates, Tenure, and Tax Benefits 2023

Type of Account Single, Joint (up to 2 adults allowed), minor (joint account with a parent/guardian), join account with a mentally unsound person, and independent minor account over 10 years of age
Opening Procedure Download the application form from the official website of the Department of Posts or collect one from a post office near you. In case of silent/inactive account for 3 years, fresh application needed
Nomination Mandatory
Rate of Interest 4% p.a.
Investment Minimum – Rs. 500; Maximum – no limit. Minimum balance needed per month to maintain the account – Rs. 10
Withdrawal Full withdrawal possible (over Rs. 50) at a post office near you; however minimum Rs. 500 balance needed in the account for maintenance; zero-balance accounts are liable for Rs. 100 fine or permanent closure in case minimum balance not maintained for 3 years
Tax Exemption Upto Rs. 10,000 lakh annual exemption allowed to investors on the interest earned under Section 80TTA of the ITA
Risk Involved None

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#3. Sukanya Samriddhi Yojna:

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 2023

Type of Account Single, opened by a guardian in the name of a girl child below 10 years old or for maximum 2 girl children in a family; two accounts can be opened in case of twins or triplets
Maturity 15 years
Rate of Interest 7.6% p.a.; determined by the Ministry of Finance every quarter
Investment Minimum – Rs. 250; Maximum – upto Rs. 1.5 lakh per annum; can be invested in several installments or as a lump sum
Withdrawal Amount can be withrawn only partially when the girl child is 18 years old; up to 50% of the balance
Tax Exemption Tax deductions permissible for interest below Rs. 1.5 lakh per annum under Section 80C of the ITA, 1961
Risk Involved None

Also Read: Sukanya samriddhi yojana interest rate 2023

#4. Senior Citizen Savings Scheme:

The post office senior citizen saving 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 2023

Type of Account Single for people over 60 years old, retirees, or people 55-60 years old currently employed in a job; joint account permissible with only spouse
Maturity 5 years
Rate of Interest 7.6% p.a. paid every quarter on 31 March, 30 June, 30 September, and 31 December; interest auto-credit facility available to the investor’s account
Investment Minimum – Rs. 1,000; Maximum – upto Rs. 15 lakh allowed
Account Closing Closure allowed after 5 years of opening of the account; no interest payable if closure before 1 year since the date of opening, 1.5% deduction from principal amount for account closure between 1 and 2 years, 1% deduction between 2 and 5 years
Tax Exemption Tax deductions permissible for interest below Rs. 50,000 per annum under Section 80C of the ITA, 1961
Nominee Claim Permissible in case of death of the depositor before the scheme maturity; if joint account with spouse, account can continue upto maturity

Also Read: LIC senior citizen scheme

Wrapping Up

As seen in the blog, there are a number of post office tax saving schemes for different sections of society. You can choose your own best saving plan in India from these options as per your needs.

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FAQs: Best Post Office Investment-Savings Scheme 2023 and Interest Rates

How do I invest in the Monthly Income Plan (POMIS) offered by the post office?

A low-risk strategy with consistent income is the Post Office Monthly Income Scheme. Earn 7.4% interest on monthly investments up to Rs. 9 lakh and Rs. 15 lakh made in a joint account. Each person must have a MIS account in order to invest in a post office scheme.

Can I make a withdrawal at any post office?

Yes, cash may be withdrawn from any post office using a Post Office account. The money can also be withdrawn at any time by the account holder. However, in the case of a generic account, a minimum balance of Rs. 500 must be kept.

How much money can I take out of my post office account?

A maximum of Rs. 10,000 in cash may be taken out of the post office account each day. However, a daily withdrawal limit of Rs. 25000 is allowed when using a post office ATM card.

Is it possible to access my postal account online?

Yes, Indian Post Office offers its account holders the option of using the internet banking service to access their specific account information, among other things. A valid individual or joint account, KYC documents, and an active DOP ATM card are required for customers before they can register for net banking.

Exists a Post Office Scheme specifically for students?

Students older than 18 can participate in all programmes with the exception of the Senior Citizen Savings Programme. The Sukanya Samriddhi Yojna (SSY) is a programme for female students that requires parents to deposit a minimum amount or more. Once the money has grown, it is given to the girl child when she turns 21.

Oct 18, 2022
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