A post office offers various deposit schemes to investors. These are also known as small savings schemes. The interest rate offered on these schemes are reviewed and fixed every quarter by the government. Some of these schemes also offer tax-saving benefits under section 80C of the Income-tax Act. Here are some of the Post Office Schemes:

POST OFFICE SCHEMES:

  • Sukanya Samriddhi Yojana (SSY) –
    • The scheme comes under the ‘Beti Bachao Beti Padhao’ campaign.
    • The scheme enjoys exempt-exempt-exempt (EEE) tax status.
    • The investment amount, the interest earned and maturity amount are exempted from tax.
    • Parents or legal guardians can open only one account per girl child and a maximum of two accounts in the name of two different girl children.
    • The maturity amount is payable after the completion of 21 years. Penalty will be levied if the minimum amount required is not deposited in a single financial year.

Minimum amount to deposit is Rs 1000 and the deposited amount can be extended up to Rs 1.5 Lakh. It offers an interest rate of 8.4 %. 



  • Kisan Vikas Patra (KVP) – 
    • If you wish to double your investment amount, then you can look to invest in KVP.
    • As for other small savings schemes the rate of interest is reviewed quarterly by the government and the time period in which the money invested doubles, therefore, varies with this interest rate.
    • The rate and the time period normally remain fixed for one quarter. 

Minimum amount to deposit is Rs 1000 and there is no limit to extend the deposited amount. It offers an interest rate of 7.6 %. 

  • Post office savings account – 
    • Like a bank savings account, one can also open a savings account with a post office and interest is paid on the balance in the savings account by the post office.
    • Account can be opened with cash only with minimum of Rs 20 and no maximum limit.
    • For a non-cheque facility account, minimum balance to be maintained is of Rs 50.
    • To avail the cheque facility, minimum balance of Rs 500 is to be maintained.
    • Recently, government launched internet banking facility for the customers.

Minimum amount to deposit is Rs 20 and there is no limit to extend the deposited amount. It offers an interest rate of 4 %. 

  • Senior Citizen Savings Scheme (SCSS) –
    • Senior citizens aged 60 years or above can invest in this scheme to earn regular interest income.
    • Interest on deposits under this scheme is payable quarterly.
    • There is a lock-in period of 5 years for the principal but premature withdrawal is allowed after the completion of one year after paying a penalty.
    • Currently, the maximum that can be invested in this scheme by any individual is capped at Rs 15 lakh.
    • The account can be opened either singly or jointly with your spouse.
    • Deposits above Rs 1 lakh will be accepted via cheque only.
    • The scheme qualifies for tax break under section 80C. 

Minimum amount to deposit is Rs 1000 and the deposited amount can be extended up to Rs 15 Lakh. It offers an interest rate of 8.6 %. 

  • Post office recurring deposits (RD) –

    • To invest small fixed amounts of money at regular intervals, one can open a 5-year RD account with the post office.
    • There is no limit on the number of accounts that can be opened.
    • There is a default fee of Rs 0.05 for every Rs 5 of deposit.
    • After 4 regular defaults, the account will be discontinued but can be revived within two months.
    • Rebate is offered on deposits made six months or more in advance of the due date. Post maturity, the RD account can be extended for another five years. 

Minimum amount to deposit is Rs 10 and there is no limit to extend the deposited amount. It offers an interest rate of 7.2 %.