India Post offers a suite of savings products through over 1.55 lakh post offices, making it the country's most geographically widespread financial network. All products are sovereign-guaranteed — there is no credit risk. Below are the key products (SCSS and NSC, though offered through Post Offices, are covered separately above).
Works like a bank savings account. Interest rate: 4% per annum. Offers cheque book, ATM card, mobile banking (IPPB), and internet banking on request. Minimum balance: ₹500. Account goes dormant after 3 inactive financial years — revive with KYC documents. Interest up to ₹10,000 is deductible under Section 80TTA (old regime); for senior citizens, up to ₹50,000 under Section 80TTB.
Available in 4 tenures: 1-year at 6.9%, 2-year at 7.0%, 3-year at 7.1%, and 5-year at 7.5% (Q1 FY 2026–27). The 5-year TD qualifies for Section 80C deduction up to ₹1.5 lakh. Interest is calculated quarterly but paid annually. Minimum deposit: ₹1,000 (no maximum). Premature withdrawal is allowed after 6 months with applicable penalty.
Designed for those who need a steady monthly income. Rate: 7.4% p.a. for Q1 FY 2026–27. Investment limits: ₹9 lakh for single accounts, ₹15 lakh for joint accounts. Tenure: 5 years. The monthly interest is directly credited to your Post Office savings account or linked bank account. Interest is fully taxable — no TDS, but must be declared in ITR. Principal is returned at maturity. Premature closure after 1 year attracts a 2% penalty; after 3 years, 1% penalty.
Build a savings habit with monthly deposits. Rate: 6.7% p.a. (Q1 FY 2026–27). Tenure: 5 years. Minimum monthly deposit: ₹100. No maximum. Interest is compounded quarterly. The account can be extended in 5-year blocks. Premature closure allowed after 3 years. Missing a payment incurs a ₹1 penalty per ₹100 deposit per month. After 4 missed payments, the account becomes dormant.