The Post Office Savings Account Interest Rate refers to the rate of interest offered on savings accounts held at post offices. It offers a secure and accessible avenue for you to deposit and save your funds. The Post Office Savings Account is governed by the India Post Payments Bank (IPPB), which provides a reliable platform with a competitive interest rate.
The Post Office Saving Account interest rate in India in 2024 is mentioned in the table below:
Scheme | Interest Rate (in % p.a.) | Minimum Investment | Maximum Investment | Eligibility | Tax Implications |
Post Office Savings Account | 4% p.a. | ₹500 | No limit | Individuals (Single & Joint); Minors |
Interest up to ₹10,000 exempts, rest taxable |
The Post Office Savings Account is a savings account offered by the India Post, a government-owned postal service. It is a safe and popular investment option for saving money, especially in rural areas where access to banks might be limited.
Post Office Savings Accounts come with the assurance of the government of India, making them a secure investment scheme.
Category | Conditions |
Post Office Saving Account Interest Rate | 4% p.a. |
Lock-in Period | NA |
Maturity Period | NIL |
Deposit and Withdrawal Currency | All deposits/withdrawals in whole rupees |
Minimum Deposit | Rs. 500 (subsequent deposits not less than Rs. 10) |
Minimum Withdrawal | Rs. 50 |
Maximum Deposit | No maximum limit |
Withdrawal Limit | No withdrawal reducing balance below Rs. 500 |
Tax Exemption | U/s 80TTA, interest up to Rs. 10,000 in a Financial Year is exempt from taxable income. |
Silent Account | No deposit/withdrawal for three consecutive financial years marks the account as inactive/ silent/ dormant. |
Additional Facilities |
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The eligibility criteria to apply for a Post Office Savings Account are as follows:
Single adult
Two adults (Joint A or Joint B)
Guardian on behalf of a minor
Guardian on behalf of a person of unsound mind
Minors over 10 years old in their own name.
Only one account per individual (single account)
Only one account in the name of a minor/above 10 years/person of unsound mind
In the event of a Joint holder's death, the surviving holder becomes the sole holder
Joint account closure if the surviving holder already has a single account
No conversion between single and joint accounts
Nomination mandatory at account opening
Minor, upon reaching the majority, must submit a new account opening form and KYC documents for conversion
You are required to submit the following documents along with 2 passport-size photographs to open a Post Office Savings Account:
Documents Required | Details |
ID Proof (any one) |
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Address Proof (any one) |
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Step 1: Visit your nearest post office (or the official India Post website) and grab a simple application form.
Step 2: Fill in the form with your basic information.
Step 3: Attach your proof of identity (like an Aadhaar card) and a passport-sized photo.
Step 4: Make a minimum deposit of Rs.20 (Rs.50 if you do not want a chequebook).
Service | Charge |
Duplicate Cheque Book | Rs.50 |
Issuing Deposit Receipt | Rs.20 per receipt |
Issuing Account Statement | Rs.20 per statement |
Cancellation or Change of Nomination | Rs.50 |
Passbook Issuance (missing/mutilated certificate) | Rs.10 per registration |
Cheque Book Issuance (Savings account) | No fee up to 10 leaves in a financial year; Rs.2 per cheque leaf thereafter |
Account Transfer and Pledging | Rs.100 |
Cheque Dis-honour Fee | Rs.100 |
A Post Office Savings Account offers several advantages that make it a smart choice for many individuals. Some of the key benefits, in a simple and clear manner, are listed below:
Safety and Reliability: Your money is secure with the government, making it a reliable savings option.
Easy Accessibility: Post offices are widespread, ensuring convenient access to your savings account across the country.
Low Minimum Balance: You can open a Post Office Savings Account with a minimal initial deposit, making it accessible to a wide range of people.
Attractive Interest Rates: The account provides competitive interest rates, helping your savings grow over time.
Tax Benefits: Some Post Office Savings Schemes offer tax benefits, providing an additional advantage for your financial planning.
No Risk of Market Fluctuations: Your savings are not subject to market risks, offering a stable and secure investment avenue.
Variety of Savings Schemes: Post offices offer a range of savings schemes catering to different needs, allowing you to choose the one that best suits your requirements.
Financial Inclusion: Post Office Savings Accounts contribute to financial inclusion by providing a straightforward savings option for people in remote or rural areas.
Nomination Facility: You can nominate a person to receive the funds in case of an unfortunate event, ensuring your loved ones are taken care of.
Simple Documentation: The process of opening and maintaining a Post Office Savings Account involves minimal paperwork, making it hassle-free for account holders.
Post Office Savings Scheme | Rate of interest (in % p.a.) | Investment Amount (in Rs.) | Tax on Deposits | Tax on Interest |
1-Year Time Deposit | 6.9% | ₹1,000 - No Limit | NIL | Fully-taxable |
2-Year Time Deposit | 7.0% | ₹1,000 - No Limit | NIL | Fully-taxable |
3-Year Time Deposit | 7.0% | ₹1,000 - No Limit | NIL | Fully-taxable |
5-Year Time Deposit | 7.5% | ₹1,000 - No Limit | NIL | Fully-taxable |
5 Year Recurring Deposit Scheme | 6.7% | Monthly ₹100 – No Limit | NIL | Fully-taxable |
Senior Citizens Savings Scheme (SCSS) | 8.2% | ₹1,000 - ₹15 lakhs | Tax benefits u/ Section 80C | Fully-taxable |
Post Office-Monthly Income Account (PO-MIS) | 7.4% | ₹1,000 to ₹4.5 lakhs (Single A/c) and Rs. 9 lakhs (Joint A/c) | NIL | Fully-taxable |
National Savings Certificate -VIII Issue (NSC) | 7.7% | ₹1,000 - No Limit | NIL | Interest reinvested annually, taxed on maturity |
Public Provident Fund Scheme (PPF) | 7.1% | ₹500 - ₹1.5 lakhs per year | Tax benefits u/ Section 80C | Interest reinvested annually, taxed on maturity |
Kisan Vikas Patra (KVP) | 7.5% | ₹1,000 - No Limit | NIL | Interest reinvested every 6 months, taxed on maturity |
Sukanya Samriddhi Account (SSA) | 8.0% | ₹250 - ₹1.5 lakhs per year | NIL | Interest reinvested annually, taxed on maturity |
Mahila Samman Savings Certificate | 7.5% | ₹1,000 – ₹2 lakhs | NIL | Interest reinvested annually, taxed on maturity |
*The interest rates of the Post Office Savings Scheme are quarterly reviewed by the Government of India.
India's Post Office Savings Account offers a competitive and stable interest rate, making it a reliable choice for individuals seeking a secure and accessible savings option. With its widespread network and government backing, the Post Office Savings Account continues to serve as a popular choice for many investors, providing a simple and effective way to grow one's savings.
Time Period | Interest Rate | Interest Earned |
1 year | 4% p.a. | ₹4,000 |
2 years | 4% p.a. | ₹8,000 |
3 years | 4% p.a. | ₹12,000 |
5 years | 4% p.a. | ₹20,000 |
10 years | 4% p.a. | ₹40,000 |
Post Office Savings Account: 4.00% p.a.
Post Office Fixed Deposit (FD):
1 year: 6.90% p.a.
2 years: 7.00% p.a.
3 years: 7.00% p.a.
5 years: 7.50% p.a.
Monthly Income Scheme (MIS): 7.40% p.a.
Senior Citizens Savings Scheme (SCSS): 8.20% p.a.
Sukanya Samriddhi Yojana (SSY): 8.00% p.a.
Kisan Vikas Patra (KVP): 7.50% p.a. (maturity period of 120 months)
Interest = Deposit amount * Interest rate * Time period