Post Office Schemes | Post Office Monthly Income Scheme | Post Office Savings Scheme | Post Office Scheme

Being initiated in the year 1688, the Indian postal service is the largest public sector organization in India. Ministry of communication controls the activities of the office. You can make use of the service on all working days. The postal department is offering a variety of schemes. All the creations of the department are for the benefit of citizens. Most of us are not familiar with the proposals of the postal department. In this brief, we have clued in all the attractive schemes of the post office. We can make use of these plans to our advantage.

Post Office Monthly Income Schemes

The post office is offering different schemes under the category of Bank and Remittance. Savings, money orders,  and money transfer plans are available under this scheme. The pension scheme is also available with the post office. You can invest in mutual funds with the aid of the post office. The post office can help you with international accounts with ease.  Let us discuss the A to Zs of all policies of the Post office.

Post Office Savings Scheme

The post office will encourage the habit of saving with different schemes. Here we go with the comprehensive list of saving plans by the post office.

Who Can Open This Account?

Customers of the following category can use the post office savings scheme. 

  • Single Adult
  • Joint account (Two persons)
  • A minor person with a guardian
  • A person who is not mentally well with a guardian

Post Office Savings Account

Any citizen of India can open a post office savings account. A minimum payment of Rs. 500 is essential for opening a savings account. This post office savings scheme can provide an interest rate of 4.0% for customers.


  • For a joint account, when one person is no more, the other person of the scheme will be the sole proprietor of the savings.
  • You cannot convert a single account into a joined scheme.
  • For all types of accounts, the nomination is necessary.
  • The minor account holder should submit a separate application for opening a new account after becoming a major.

Deposit and Withdrawal Guidelines

We have deposit and withdrawal directions to keep in mind. They are as follows.

  • We should make our deposits in whole rupees only.
  • The initial minimum deposit is RS. 500. After that, you can deposit a minimum amount of RS.10 each month. The maximum deposit is limitless for this account.
  • You cannot withdraw the amount remaining after a minimum balance of Rs. 500.

National Savings Recurring Deposit Account

NSRD is a five years post office savings scheme. The scheme will provide an interest rate of 5.8% for deposits. Customers can use this service for smart savings of their hard-earned money.

Instructions to Deposit

  • You can open this account with cash or cheque for a minimum amount of Rs.100.
  • You should deposit a minimum of Rs.100 per month.  All deposits should be in multiples of 10.
  • You should deposit every month of the year to keep the account active. Failing to make a deposit every month will result in a penalty payment.

Loan Facility

Clients can avail of loans from their RD account. You can lend money from your account after the completion of one year. Fifty percentage of the balance available in your account can be taken as a loan. You have to repay the in a single installment or monthly installment. An interest of 2% will apply to the loan amount.

Closure and Maturity

You can close the account before maturity after the completion of three years. Your account will mature after five years. After maturity, you can claim the deposit amount along with interest.

National Savings Time Deposit Account (TD)

You can use this post office scheme to open a savings account with a closure time limit.  The savings are available for a term of one, two, three, and five years duration. Each account duration will have specific interest rates. An individual can open any number of TD account. 

Deposit Directives

  • You can start this account with a minimum deposit of Rs.1000.
  • All deposits should be in the multiples of 100.

Interest rate

Each account will have different interest rates depending on the period of maturity. They are as follows.

  • One Year Plan:  5.5% interest
  • Two Years Plan:  5.5% interest
  • Three Years Plan: 5.5% interest
  • Five Years Plan: 6.7% interest

Maturity and Closure

Your TD account will mature after the period of the scheme. You can claim the deposit amount along with interest after maturity. You cannot withdraw your deposit amount before the completion of six months from the date of the first deposit. 

While closing your TD account after six months and within one year from account opening, you can claim your amount with a PO savings account interest rate. For premature closure of the scheme after one year, an interest rate of 2% less than the actual value will be applicable.

National Savings Monthly Income Account (MIS)

This post office monthly income scheme will allow you to claim the interest amount for your savings at monthly intervals. Users have to pay an initial amount of Rs. 1000 and all transactions should be in multiples of 100. This savings account will provide an interest rate of 6.6 % to the amount deposited.


  • You can deposit a maximum of 4.5 lakhs in a single account.
  • The deposit limit for a joint account is six lakhs.
  • You can claim the interest of your deposit every month.
  • You can collect your monthly interest in your savings account.

Closing Stages of Your Account

  • You cannot withdraw from your post office monthly income scheme before the completion of one year. 
  • You can close your account after one year and within three years from the opening date with a deduction of 2% of the principal amount.
  • You can terminate your account from the third to fifth years of the scheme. In such a case, the post office will deduct 1% of the principal amount.

Senior Citizens Savings Scheme (SCSS)

SCSS savings scheme can provide a better savings option for senior citizens. With the highest interest rate, elderly people can use this scheme to secure their retirement life.

Eligibility to Open This Account

  • Persons above 60 years of age
  • Retired civilian employees below 60 years of age
  • Retired defense employees below 69 years of age

Deposit Rules

  • The minimum deposit requirement of the account is Rs. 1000. All the transactions should be made in multiples of 1000.
  • The maximum deposit limit of the account is Rs. 15 lakh.

Interest Rate

  • SCSS post office scheme can provide an interest rate of 7.4% per annum.
  • You can claim the interest amount every quarter.
  • The interest amount is taxable when it exceeds Rs. 50,000. You can draw the interest amount to your savings account.

Public Provident Fund Account

A Provident fund account is suitable for long-term savings. This account will provide a high interest rate for clients. You can open this account in the post office and bank.

Deposit Terms

  • You should deposit a minimum amount of Rs. 500. The account allows us to deposit a maximum of 1.50 lakh per financial year.
  • You can pay the deposit amount as per your comfort in installments within the financial year.
  • You can deposit the amount in the multiples of 50.

Interest Rate

  • The Provident fund account can provide a 7.1% interest for your savings amount.
  • You can get the interest on your account every year.
  • There is no tax deduction for the interest amount.

Loan Facility

  • After the successful completion of one year after the year of opening of the account, you can avail of a loan from your provident fund account.
  • You can claim 25% of your account balance as a loan.
  • You can avail of only one loan per financial year. The second loan will be issued after the completion of the first loan.

Account Closure

  • The Provident fund account will get maturity after the completion of 15 financial years. You can claim the deposit amount by submitting a suitable form after maturity.
  • You can close your PFA account before maturity, after the completion of the 5th year.

Sukanya Samriddhi Accounts

SSA account is a special post office savings scheme for girl children. The account is for 15 years. You can open this account in a post office or bank.

Eligibility to Open the Account

  • All girl children are eligible to open this account.
  • Children below 10 years of age can open this account under the name of a guardian.
  • An individual can open only one account. Only two girl children of a family can use this account.

Deposit Rules

  •  Rs. 250 is the minimum deposit amount for opening this account.
  • Rs. 1.50 lakh is the maximum amount that you can deposit in this account.
  • Failing to pay a minimum of Rs. 250 may change the account into a defaulted account.
  • You can review your defaulted account by paying Rs.250 and Rs.50 for each pending year.

Interest Terms  

  • The account can supplement you with an interest rate of 7.6% per annum.
  • Interest calculation is on yearly basis.

National Savings Certificates (NSC)

NSC post office scheme is for five years duration. People of all age groups can avail of this scheme to get the benefits of savings. The savings scheme is for five years.

Deposit Directions

  • You should advance a minimum of Rs. 1000 rupees as initial deposit. All payments should be made as multiples of 100.
  • There is no limit for the maximum deposit amount in this scheme.


  • Your savings account will mature after five years
  • You cannot close the account before its maturity.


  • You can claim your savings amount with an interest rate of 6.8%.

Kisan Vikas Patra (KVP)

With a KVP savings account, you can double your savings amount. Anyone can avail of this savings account. Any number of accounts can be opened by an individual.


  • Customers should pay a minimum of Rs. 1000 as an initial deposit.
  • All payments should be made as multiples of 100. 

Interest Rate

  • You can enjoy an interest rate of 6.9% for a savings amount.
  • All interest will be calculated annually.

Closure criteria

  • Your KVP savings account will mature after 124 months.

You can close your account after 2 years 6 months from the account opening date.

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