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Post Office Savings Account

Government of India — Post Office Savings Bank · Government & Post Office Schemes

An ordinary savings account at the post office — everyday access, with a rate that is notified each quarter rather than fixed.

4.00% Interest rate · Notified quarterly; current for Oct–Dec 2026

As of 1 Oct 2026. Rates change — check the source before acting.

Source: National Savings Institute · confirmed via Outlook Money, 1 October 2026

Source India Post — saving schemes

www.indiapost.gov.in/banking-services/savings

The official page listing every post office savings scheme, with the current rates and rules.

How it works

Post Office Savings Account is a government schemes product from Government of India — Post Office Savings Bank, in the conditional category: depends on terms being met. An ordinary savings account at the post office — everyday access, with a rate that is notified each quarter rather than fixed.

Because the return type is conditional, the questions that matter most are: Which conditions have to be true for me to get the stated return? What do I get if those conditions are not met?

  • An emergency fund with branch and ATM access
  • A simple account for someone without a bank branch nearby

Key facts

Provider
Government of India — Post Office Savings Bank
Source
India Post — saving schemes ↗ https://www.indiapost.gov.in/banking-services/savings
Rate
4.00% Interest rate, as of 1 Oct 2026
Category
Government & Post Office Schemes
Minimum investment
₹500 minimum balance depends on the facilities you take; confirm at the counter
Tenure
No fixed term
Payout
Interest credited annually
Eligibility
Resident individuals, including minors through a guardian. KYC documents required.
Getting your money back
Withdraw any time, by counter, ATM or transfer.
Protection
A sovereign liability of the Government of India, held through the Post Office Savings Bank.
Tax
Interest is taxable as income from other sources. There is no deduction for the balance, unlike small-savings certificates.

What can go wrong

  • The rate is notified quarterly and can fall — unlike a fixed deposit.
  • Returns are low relative to inflation over long periods.
  • Minimum-balance rules can attract charges if the balance drops.

Before you decide anything

  • The minimum balance for the facilities you want
  • Whether the account supports the transfers you need

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.

Other products in this category

The same rules and the same kind of trade-offs, described the same way.