The main financial services offered by the Department of Posts are the Post Office Savings Bank. It is the largest and oldest banking service institution in the country. The Department of Posts operates the Post Office Savings Scheme function on behalf of the Ministry of Finance, Government of India. Under this scheme, more than 20.50 crores savings account are operated. These accounts are operated through more than 1,54,000 post offices across the country.
The Post offices provide a number of savings schemes like the Savings Account Schemes, Recurring Deposit Schemes, Time Deposit Schemes, Public Provident Fund Schemes, Monthly Income Schemes, National Savings Certificates, Kisan Vikas Patras, and Senior Citizens’ Savings Scheme.
A brief of the various schemes is as follows:
| Scheme | Interest Rates | Tenure | Investment Denominations and limits | Salient Features | Tax rebate |
| Post Office Savings Account | 3.5% p.a.
On individual and joint account | No specific or fix tenure | Min: Rs. 50
Max: Rs. 1 lakh for individual and 2 lakhs for joint account
| Cheque facility available | Interest is tax-free u/s 80L |
| 5-Year Post Office Recurring Deposit Account | 7.5% compounded quarterly | 5 years. Can be renewed for another 5 years | Min: Rs. 10 per month or multiples of Rs. 5
Max: No limit
| One withdrawal up to 50% of the balance is allowed after one year. Full maturity value allowed on R.D. 6 & 12 months advance deposits earn rebate. | No tax rebate |
| Post Office Time Deposit Account | 6.25% | 1 year | Min: Rs. 200 and its multiple thereof Max: No limit | Long-term accounts could be closed after 1 year for discounted interest. Accounts could be closed after 6 months but before a year for no interest.
Interest is calculated quarterly but payable yearly. | Investment qualifies for deduction u/s 80C. Interest is tax-free u/s 80L |
| 6.50% | 2 years
|
| 7.25% | 3 years
|
| 7.50% | 5 years |
| Post Office Monthly Income Account | 8% p.a. | 6 years | Min: Rs. 1500 per month or multiples of it.Max: Rs. 4.5 lakhs for individual account and Rs. 9 lakhs for joint account | Account if closed after 1 year but before 3 years will suffer a deduction of 2% of the deposit. Account if closed after 3 years will suffer a deduction of 1% of the deposit. On maturity, bonus of 5% on principal amount is admissible | Interest is tax-free u/s 80L |
| 15-year Public Provident Fund Account | 8% p.a. compounded yearly | 15 years tenure | Min: Rs. 500 in 1 year Max: Rs. 70000 in 1 year Deposits can be made in lump-sum or 12 installments | Withdrawal can be made every year after the 7th financial year. From the 3rd financial year, loan can be availed against PPF. No attachment under court decree order. | Investment qualifies for deduction u/s 80C. Interest is tax-free u/s 80L |
| Kisan Vikas Patra | 8.4% compounded yearly. Money doubles in 8 years and 7 months | --- | No limits. Investment denominations available are of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10,000, in all Post Offices and Rs. 50,000 in all Head Post Offices. | A single holder certificate can be purchased by an adult. A certificate can also be purchased jointly by two adults. | No tax benefits |
| National Savings Certificate (VIII issue) | 8% p.a. compounded half-yearly but payable after maturity | 6 years | Min: Rs. 100. Also available in denominations of Rs. 100/-, 500/-, 1000/-, 5000 & Rs. 10,000/-. Max: no limit | A single holder certificate can be purchased by an adult. | Investment as well as the interest deemed to be re-invested qualifies for deduction u/s 80C. |
| Senior Citizens’ Savings Scheme | 9% p.a. | 5 years | Only 1 deposit allowed in multiple of Rs. 1000. Max is Rs. 15 lakhs | Age should be above 60 years or 55 years above if retired under superannuation. Account if closed after 1 year will suffer a deduction of 1.5% interest and after 2 years will suffer a deduction of 1% interest. TDS is made on interest if it exceeds Rs. 10000 p.a. | Investment qualifies for deduction u/s 80C. |
