Post Office Savings Schemes

Savings & Deposits

India Post offers several savings schemes backed by the Government of India -- considered the safest deposits available (sovereign guarantee). Key schemes: PPF, NSC, SCSS, KVP, Sukanya Samriddhi, Post Office MIS, Post Office RD and FD. Widely available across 1.5 lakh post offices.

In detail

Post Office schemes comparison (2024 rates):nPost Office Savings Account: 4% (better than most PSU banks)nPost Office FD (5 years): 7.5% (qualifies for 80C)nPost Office RD (5 years): 6.7% quarterly compoundingnPost Office MIS: 7.4% monthly income (max Rs 9L single, Rs 15L joint)nNSC (5 years): 7.7% (80C eligible)nKVP: 7.5% (doubles in 115 months)nSCSS (5 years, seniors): 8.2%nSSY: 8.2% (girl child under 10)nPPF (15 years): 7.1%nnGovernment guarantee: all schemes backed by Government of India -- no DICGC limit applies. Unlimited safety.

Formula

Post Office MIS monthly income:n= Principal x 7.4% / 12nFor Rs 9L (max single): Rs 9L x 7.4% / 12 = Rs 5,550/month

Real-life example

🇮🇳 India example

Retired couple: husband and wife each open Post Office MIS with Rs 9L (total Rs 18L, using joint account Rs 15L + husband individual Rs 3L). Monthly income: Rs 15L x 7.4% / 12 = Rs 9,250/month joint + Rs 3L x 7.4% / 12 = Rs 1,850/month. Total: Rs 11,100/month of income from Rs 18L. 100% government guaranteed. Ideal component of senior citizen income strategy.

Frequently asked questions

Are post office schemes better than bank FDs? ▼

Safety: post office is better (sovereign guarantee, unlimited). Rates: post office NSC at 7.7% beats most bank FDs currently. Convenience: banks win (online access, ATM, mobile banking). For purely safe fixed income: post office schemes (especially SCSS, NSC, MIS) are excellent. Combine post office safety with bank convenience by holding both.