All you want to know about Post Office Schemes

(Last Updated On: September 24, 2016)

India post

Even before Department of Post got approval from RBI to open up a payment bank, India Post has been active in securing last mile deposits with its various saving schemes, currently India post holds more than 6 lac crores of balance in its various saving schemes, this is almost half of what  biggest public sector bank in India SBI holds and almost 2 times the deposits which ICICI bank the largest private bank in India has.

Juxtapose this with unparalleled reach India post has it already covers most parts of India, with a 95 % pin code coverage, India post juggernaut can be the biggest and most forceful driver of financial inclusion in India, where large parts of the rural population are still under banked .

India post already sells insurance products and with latest payment bank license , India post can truly transform itself into a financial behemoth with best in class reach , brand, and people that Indians trust

Summary of Current India Post schemes 

Here is the list of post office schemes available

  1. Post office saving account
  2. 5-year post office recurring deposit
  3. Post office time deposits account
  4. Most office monthly income account
  5. Senior citizen saving scheme
  6. 15-year public provident account
  7. National Savings certificate
  8. Kisan Vikas Patra
  9. Sukanya Samridhi account ( For more details read my post on Secure your daughter’s future with Sukanya Samridhi Yojana)

Below are the detailed latest interest rates for FY 2016-2017 for various post office schemes.

Q2 FY 2016-2017 Interest Rates for Different Post Office Schemes

Q2 FY 2016-2017 Interest Rates for Different Post Office Schemes

to read further details of the schemes,go here 

How to calculate Interest rate on various India Post Schemes

You can calculate interest rates on all India post scheme including savings deposits, recuring deposits, Monthly income schemes, time deposit, senior citizen saving schemes at the following location

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Downsides of Investing in Post Office schemes

While post office schemes

  1. Post offices still do not have core banking implemented, hence most of the investments you make are localized as a result you will need to keep going to the same post office where you invested.
  2. No digitization hence all your investments stay in hard copy
  3. Because of zero digitization , you need to take care of physical investment papers like NSC certificates etc . In case of damage or if the physical document gets lost you need to go through lot of pain to get things right
  4. Post staff will not be the most friendly staff you will see around and the investment experience not the most pleasant experience
  5. Decreasing interest rates means post office schemes returns relative returns vis a vis long term equity schemes

For more details read my post on 5 Reasons why should not invest in Post office schemes 


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  • Just to quickly recap, last quarter, Government maintained the same interest rate for all Post Office Small Savings Schemes.

    However, this time, Government reduced around 20 BPS or 0.2% for all its schemes (except Savings Account interest rates, SCSS).

    Parm Sandhu 10 months ago Reply

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