The Post Office Savings Scheme in India refers to a range of financial products offered by the Indian Postal Service to provide small savings options for individuals. These schemes include options like Post Office Savings Accounts, Public Provident Funds (PPF), National Savings Certificates (NSC), Monthly Income Schemes (MIS), and more. They are designed to encourage saving and offer attractive interest rates, making them popular among individuals looking for safe investment avenues.

Types of Savings Schemes under Post Office Investments

1. Post Office Monthly Scheme Account (MIS) –

• A sum of Rs 1000 to Rs 9 Lakh can be deposited here and up to Rs 15 lakh if it’s a joint account.
• You can get a monthly fixed income from the scheme and earn an interest rate of 7.4% p.a. for Q2 FY 2023-24.
• Maturity period – 5 years.
• Before completing a year, you cannot prematurely close your account or else you’ll attract penalties.

2. Senior Citizens Savings Scheme (SCSS) –

• This scheme allows you to make a lump sum deposit, i.e. one installment, and is also backed by the government.
• Here, the deposit may range from Rs 1000 up to Rs 30 Lakh.
• Senior Citizens Savings Scheme can be opened jointly with spouses or individually only.
• Individuals 60 years of age and above are eligible to open this account.

3. 15-Year Public Provident Fund Account (PPF) –

• The public provident fund offers income tax deductions up to Rs. 1.5 lakh per financial year under Section 80C which is why many salaried individuals prefer the Public Provident Fund as a retirement and investment tool.
• The maximum deposit limit is Rs 1.5 lakh and the minimum deposit limit is Rs 500.
• To keep the account active, you need to pay only Rs 500 and the tenure of the account is 15 years from the date of opening.
• The interest rate of this scheme is 7.1% p.a. compounded annually.

4. National Savings Certificates (NSC) –

• The minimum deposit range of the National Savings Certificate is Rs 1000 with a tenure of five years. There is no maximum deposit range here.
• The interest rate of National Savings Certificates is 7.7% p.a which is compounded annually and paid only at maturity.
• Under this scheme, an individual can open any number of accounts.

5. Kisan Vikas Patra (KVP) –

• The best part of this investment is that you can double your investment over the tenure of the account.
• The interest rate of Kisan Vikas Patra is 7.5% p.a. and the minimum deposit for this account is Rs 1000.
• The account tenure of Kisan Vikas Patra is 120 months (10 years) and the amount that you’ve invested will get doubled in this tenure.

6. Sukanya Samriddhi Account (SSA) –

• Dedicated to the girl child, this scheme is government based where Sukanya Samriddhi Account can only be opened for girls below the age of 10 years.
• The maximum deposit range is Rs 1.5 lakh while the minimum deposit range is Rs 250 per financial year.
• The interest rate of the Sukanya Samriddhi Account is 8% p.a. which is calculated every year and compounded annually.
• Money can be deposited to the account for a maximum of 15 years from the date of opening.

Advantages of Post Office Savings Schemes in India –

1. Safety: These schemes are backed by the Government of India, providing a high level of safety for your investments.

2. Guaranteed Returns: Most schemes offer fixed or predictable returns, providing stability to your savings.

3. Accessibility: Post offices are widespread across the country, making it convenient to access these schemes, especially in rural areas.

4. Tax Benefits: Certain schemes offer tax benefits under Section 80C of the Income Tax Act.

5. Diversified Options: Post Office Savings Schemes include options like Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS), etc., catering to different needs.

6. Low Minimum Investment: These schemes usually have low entry requirements, making them accessible to a wide range of investors.

How to open a Post Office Savings Schemes Account –

Through Internet Banking

Step 1: Visit the website of Internet Banking i.e. Department of Posts.

Step 2: Then, click the ‘New User Activation’ button.

Step 3: After that, enter the ‘Customer ID’ and ‘Account ID’ and click the ‘Continue’ button.

Step 4: Enter your user ID and password to log in to your DOP Internet Banking once Internet banking is activated.

Step 5: Then you need to click on the ‘General Service’ tab on the menu and click the ‘Service Request’ tab.

Step 6: Click the ‘New Requests’ tab under the ‘Service Request’ section.

Step 7: There will be multiple options, you can select the type of account you want to open.

Step 8: After entering the details on the application form, click on the ‘Submit’ button option.

Through Mobile App

Step 1: Download the ‘India Post Mobile Banking app from Google Play Store and log into it.

Step 2: Select the ‘Requests’ tab on the home screen to open a post office savings account upon successful login.

Step 3: After that, enter the details such as tenure, deposit amount, nominee, the account from which you want to deposit the money, and others and submit.

By downloading the application form

Step 1: From the Post Office’s official website, download and print the relevant application form.

Step 2: After that, attach all the necessary documents.

Step 3: Visit your home branch of the post office to relevant personnel and submit the documentation.

Step 4: You need to pay the minimum amount required to open the scheme/account.

Step 5: After your account is verified by the post office officials, your account will be opened and a passbook will be given to you.

Documents required to open a Post Office Savings Schemes Account –

1. Account opening form.
2. PAN Card
3. KYC form
4. Aadhaar Card, in case you don’t have an Aadhaar you can submit the following documents –

• Driving license
• Passport
• Voter’s ID
• Letter issued by the National Population Register which contains name and address.
• Job Card (signed by the government of India and issued by MNREGA).

• Date of birth/birth certificate proof in case of a minor account.

Frequently asked questions –

1. Can Monthly Income Scheme (MIS) interest be credited to Recurring Deposit (RD) account?

– No, Monthly Income Scheme interest cannot be credited to the post office RD account but it can be credited to the post office savings account.

2. Is there a tax rebate for investment in Post Savings Schemes?

– Section 80C deduction for investment can be taken in most Post Office Savings Schemes.

3. Can a Post Office Savings Scheme be opened by students?

– Yes, students who are above 18 years can open and invest in the Post Office Savings Scheme.

4. Which Post Office Savings Scheme is best for 5 years?

– The 5-Year Post Office Recurring Deposit Account (RD) is best for 5 years of investment.

5. Can I check my Post Office account online?

– Yes, you can check your Post Office account online using Internet Banking but you need to have KYC details and a DOP ATM card.