Post Office Saving Schemes Types and Benefits

Post office is one of the oldest organizations in India which started way back during the British era in Oct 1854, initially focusing only on delivering mail (post) and later started providing an array of other financial services i.e., Banking, Insurance & Investments.

The biggest advantage of these schemes is their sovereign guarantee i.e., it is backed by the government. Some of the post office savings schemes also offer tax-savings benefits U/S 80C of the Income Tax Act.



Post Office Schemes in Brief

Post Office Savings Account – It acts as a normal savings account of any bank, and the account is transferable from one post office to another.

National Savings Recurring Deposit Account – The Scheme helps small/poor investors to form a corpus to meet their future needs. An account is either opened by an adult or by two adults jointly.

National Savings Time Deposit Account – There is a tax benefit for the investment made in the 5-year post office time deposit. The investment qualifies for the deduction under of The Income Tax Act, 1961.

National Savings Monthly Income Account – This is a scheme in which investors contribute a certain amount and earn a fixed interest every month.

Senior Citizen Savings Scheme Account – The Scheme is a savings instrument offered to Indian residents aged over 60 years. The deposit matures after 5 years from the date of account opening but can be extended once by an additional 3 years by the investor.

Public Provident Fund Accoun  is a long-term investment scheme declared by the Government of India. It is a safe post office deposit scheme that offers tax exemptions and attractive interest rates as decided each financial year.

 (NSC) – The Scheme is a fixed income investment scheme that one can open with a post office. As part of an initiative from the Government of India, it is a savings bond that encourages subscribers, primarily small or mid-income investors, to invest while saving on income tax.

Kisan Vikas Patra Account – Kisan Vikas Patra is a certificate scheme from the post office. It may actually double as a one-time investment in a period of approximately 9 years & 10 months.

Sukanya Samriddhi Account – SSY is a savings scheme launched by the Government of India for the financial betterment of the girl child. The scheme enables parents to build capital for the future education and marriage expenses of their female child and provides an attractive interest rate on the investment.

Process to Apply for a Savings Scheme in Post Office

The following steps can enable you to easily apply for a post office saving scheme:

Step 1: Visit the closest post office branch.

Step 2: Get the form to open the relevant account from the post office. However, you can also download the form online from the official portal of the Indian Post Office.

Step 3: Fill in the form with the needed details and submit it along with the KYC proof. You will also have to give other documents as required.

Step 4: Finish the process of enrolment by depositing the amount of the scheme you chose.

Required Documents for Post Office Saving Schemes

• Form (relevant)
• KYC Form
• PAN
• Aadhaar
• Driving license
• Voter’s ID card
• Job card
• Proof of date of birth

Advantages of Investments in Post Office Schemes

Simple investment process

Post office saving schemes are easy to enrol in and require limited documentation as simple procedures in post offices ensure that these saving schemes are safe investment tools and provide a fixed return as they are backed by the government.


Easily Accessible

These schemes are best suited for rural and urban investors as Post offices are in every corner of the country. To cater to the uneducated and rural population, these are simple and thus make these a much-preferred savings option.

Long-term Benefits

The investments in the Post Office Schemes are more future and long-term oriented as it can be the best retirement or pension plan with the investment period extending up to 15 years for a PPF account. With this kind of Investment scheme, an investor can diversify his/her portfolio for a risk-free and fixed return.

Risk-free and Competent Interest Rates

Interest rates in post office savings schemes range from 4% to 8% which is also risk-free and highly competitive with Banks. There is a minimal amount of risk involved as this is regulated by the Government of India.
Customized Products to Suit Investor Needs



The Post Office of India provides suites of different products to cater to different investor grades. The products on offer vary with tax implications, investment horizons and expected returns as per the requirements of the investor.