The Guide To Post Office Savings Schemes


People from all walks of life have access to post offices. They are the heritage brick and mortar system of information and money transfer. They stand impervious and in pristine condition, competing with the new banking system. In this age of decreasing fixed deposit rates, the Post Office stands as one of the most reliable and secure places to increase your capital.

Which Saving Scheme is Best in the Post Office?

The post office handles banking through the following saving schemes:

  1. Post Office Savings Account
  2. Post Office Recurring Deposit Scheme (RD)
  3. Post Office Time-Deposit Account (TD)
  4. Post Office Monthly Income Scheme (MIS)
  5. Senior Citizen Saving Scheme (SCSS)
  6. Public Provident Fund Account (PPF)
  7. National Savings Certificates (NSC)
  8. Kisan Vikas Patras (KVP)
  9. Sukanya Samriddhi Account (SSS)

The post office time deposit is the best saving scheme. With this scheme, you will earn compound interest computed quarterly, giving better returns on the same interest rate. There is no maximum deposit. You can either withdraw the amount or divert the money to other post office bank schemes like recurring deposit and savings schemes. The rate of interest is 7% for one to four years and 7.8% for a five-year deposit. Furthermore, you will also be able to avail of tax deduction services with a five-year deposit.

In How Many Years will FD Double in the Post Office?

Time deposit, also known as a fixed deposit in the post office, has a fixed interest rate. This interest rate can help us calculate the time required for the post office scheme to double the money. We can either use a post office FD calculator or figure it ourselves. According to the 72 rule in banking, the number of years required to double an amount is equal to 72 divided by the rate of interest. Considering an interest rate of 7 per cent per annum, it should take ten years and three months. For Kisan Vikas Yojna, it takes 112 months to double the amount.

What is the Interest Rate for the Post Office Savings Account?

The savings account in a post office has an interest rate of 4 per cent per annum. The interest is non-taxable up to 10000 rupees per year. You can open a savings account at a post office with just Rs. 20 in your account.

What is the Agent Commission in Post Office Schemes?

Till recently, post office agents used to enjoy a good commission for their services in post office schemes. However, as of December 2011, the payment of commission to agents for the Public Provident Fund and Senior Citizen Saving Scheme is no longer applicable. All other schemes, except Mahila Pradhan Kshetriya Bachat Yojana, have reduced their commission from 1% to 0.5%. Meanwhile, MPKBY agents enjoy a high rate of commission, at the existing rate of 4%. The government is more focused on driving investment, rather than following an agent-centric approach. Although the government wants to abolish and minimise agent influence, it also keeps in mind the interest of the agents wherever required.

Is Post Office FD Safe?

The post office is backed by a sovereign guarantee, providing complete safety of both the principal and the interest. It is safer than bank FDs because, under bank rules, a maximum of five lakh for the principal as well as the interest is secure. If banks go bankrupt, the depositor is only entitled to receive up to five lakh rupees.

Are Post Office Schemes Safe?

Post Office schemes are directly under the Government of India. They are backed by a sovereign guarantee, meaning you won’t lose a single penny. They are easy to invest, have tax exemption, have long term investment plans, and are comparatively easier to enrol. They have different schemes, tailor-made to suit your needs.

How can I Double my Money in Five Years?

Doubling money within five years is a difficult task. Post office TD, RD, KVP, NSC, and even SSS can help you double the amount in seven years to ten years. Mutual funds and stocks can help in doubling or even tripling in five years. However, since the market is in free fall, it is risky. If the interest rate is good, you can earn enough from a recurring or a fixed deposit. Unlike mutual funds and the stock market, they are not subject to market risks.
We can calculate the post office FD interest using a post office FD calculator. The post office FD interest rate in 2019, for one year to four years is 6.9%, whereas the rate of interest for five years term deposit in banks is 7.6%.

For the Post Office RD Scheme, the recurring deposit carries on for five years. Using a post office recurring deposit (RD) calculator 2019, we can calculate the maturity value of a sum invested. The current interest rate for the post office recurring deposit is 7.5% per annum.

How Much Money can be Deposited in the Post Office?

You can create an account with a deposit of just Rs. 10 and can go till an unlimited range.

Which FD is Best – Bank or Post Office?

Post Office FD is the best because it protects your deposit from risk, offers better rates than bank FD, and can be transferred along multiple channels.

A boy child can apply for any post office saving scheme except SCSS, PPF, and SSS. Although she can apply in all schemes, the SSS scheme is the best post office saving scheme for a girl child.


Post office saving schemes are moving the country forward with their beneficial schemes, from helping the old and poor to minors and girls in securing their future. Post office schemes are ahead of the curve, helping people who can not meet up requirements of modern financial systems, as well as providing them with benefits that surpass other financial institutions.

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