The Post Office Savings Account works just like a bank savings account, except it is run by India Post and backed by the Government of India. You can open one at any post office branch across the country, including in small towns and villages where banks may not be present.
The interest rate is lower than most other NSS schemes, but money is completely liquid — you can deposit or withdraw any time. It also comes with a free cheque book and ATM card at most post offices.
Who Should Invest?
- Anyone who wants a simple, safe place to park money with full liquidity
- People in rural or semi-urban areas without easy access to bank branches
- Senior citizens looking for a simple account alongside their SCSS
Key Features
- Open with just ₹500. No maximum limit.
- Interest up to ₹10,000 per year is exempt from income tax (Section 80TTA)
- Passbook issued. Cheque book and ATM card available at most branches.
- Can be opened as single or joint account
- Nomination facility available
Watch Out For
- Interest rate (4%) is lower than savings accounts at many private banks
- Limited online banking features compared to commercial banks
Compare All NSS Schemes
See how PO Savings compares to all other National Savings Schemes in one table.
← View All NSS Interest Rates
