Top 5 Post Office Schemes You Must Know

Most people think Fixed Deposits (FDs) are the safest choice for secure returns. While banks like HDFC, ICICI, and SBI push their FDs, they rarely tell you about Post Office schemes that often give better returns, more safety, and government guarantee.

Here’s a detailed guide to the Top 5 Post Office Savings Schemes, their eligibility, how to apply, and a comparison with Bank FDs.

1. Time Deposit Account (TD)

• Nature: Works just like a Fixed Deposit.
   
• Tenure Options: 1, 2, 3, or 5 years.
   
• Interest Rate: Up to 7.5% (5-year deposit).
   
• Minimum Investment: ₹1,000, no upper limit.
   

Eligibility:

• Any Indian resident individual.
   
• Minors above 10 years can open.
   
• Guardian can open on behalf of a minor.
   

How to Apply:

• Visit Post Office and fill Form-1.
   
• Submit Aadhaar, PAN, photo, and address proof.
   
• Deposit cash/cheque or transfer from PO savings account.
   

2. National Savings Certificate (NSC)

• Interest Rate: 7.7% (compounded annually).
   
• Lock-in: 5 years.
   
• Minimum Investment: ₹1,000, no max cap.
   
• Tax Benefit: Eligible for Section 80C deduction.
   

Eligibility:

• Indian residents only.
   
• Minors allowed through guardian.
   
• HUFs and NRIs not eligible.
   

How to Apply:

• Visit any Post Office.
   
• Fill NSC purchase form + submit KYC docs.
   
• Pay minimum ₹1,000; certificate/e-mode issued.
   

3. Monthly Income Scheme (MIS)

• Nature: Fixed monthly income.
   
• Interest Rate: 7.7%.
   
• Investment Limit: ₹9 lakh (Individual), ₹15 lakh (Joint).
   
• Minimum Investment: ₹1,000.
   

Eligibility:

• Indian residents (individual/joint).
   
• Minors (through guardian).
   

How to Apply:

• Fill MIS Account Opening Form at Post Office.
   
• Submit Aadhaar, PAN, photos.
   
• Link savings account for monthly credit.
   

4. Senior Citizens’ Savings Scheme (SCSS)

• Interest Rate: 8.2% annually, paid quarterly.
   
• Investment Range: ₹1,000 – ₹30 lakh.
   
• Lock-in: 5 years (extendable by 3 years).
   

Eligibility:

• Age 60+ years.
   
• Retirees aged 55–60 (with VRS benefits).
   
• NRIs & HUFs not eligible.
   

How to Apply:

• Fill SCSS account opening form at Post Office/banks.
   
• Provide age proof + KYC docs.
   
• Deposit lump sum.
   

5. Kisan Vikas Patra (KVP)

• Nature: Money doubles in 10 years 4 months.
   
• Interest: Compounded annually.
   
• Minimum Investment: ₹1,000, no upper limit.
   

Eligibility:

• Indian residents (individual/joint).
   
• Minors allowed via guardian.
   

How to Apply:

• Fill KVP Application (Form-A) at Post Office.
   
• Submit Aadhaar, PAN, and photo.
   
• Deposit min ₹1,000 in multiples of ₹100.
   

Common Documents Required

• Aadhaar Card (ID + Address proof)
   
• PAN Card (mandatory if investment > ₹50,000)
   
• Passport-size photographs
   
• Post Office Savings Account (for credit of interest)
   

FD vs Post Office Schemes: Comparison Table

Feature	Bank Fixed Deposit	Post Office Schemes
Safety	Bank risk + up to ₹5 lakh DICGC insurance	100% Govt. of India backed
Interest Rates	~6–7% (varies by bank & tenure)	7.5% (TD), 7.7% (NSC/MIS), 8.2% (SCSS)
Tax Benefits	Only 5-year Tax Saver FD under 80C	NSC (80C benefit), SCSS (interest taxable but higher rate)
Liquidity	Premature withdrawal (with penalty)	Varies by scheme; NSC/KVP have lock-in
Target Audience	General investors	Seniors, taxpayers, rural/urban investors
Income Option	Lump sum at maturity	Monthly (MIS), Quarterly (SCSS), Long-term growth (KVP)

Online Application (India Post / IPPB)

• Some schemes (like TD, RD, NSC, MIS, SCSS) can be managed via India Post Internet Banking or IPPB Mobile App once you have a Post Office Savings Account.
   
• Process:
   
  1. Register for internet/mobile banking at Post Office.
      
  2. Log in to India Post portal or IPPB app.
      
  3. Choose the scheme → Fill online form → Fund via linked PO account.
      
• However, first-time applications usually require branch visit for KYC.
   

Final Word

Post Office schemes are a solid choice for those who want higher returns than FDs, zero risk, and guaranteed safety. Depending on your goals—tax savings, monthly income, or long-term doubling—you can pick the scheme that fits best.

 Disclaimer: Interest rates and rules are subject to revision by the Government of India. Always check the latest circulars or consult a financial advisor before investing.