Post Office - Savings Account Interest Rates

As of August 2026, Post Office offers a maximum savings account interest rate of 4% p.a. on select balance slabs. The rate varies based on the amount maintained in your account.

Yes, Post Office is a scheduled bank regulated by the RBI. Your deposits (up to ₹5 Lakhs per depositor) are insured by DICGC, which covers both principal and accrued interest across all your accounts in this bank.

Banks typically calculate savings account interest on the daily closing balance. The interest is usually credited monthly or quarterly. The applicable rate depends on the balance slab your account balance falls into.

Yes, interest earned on savings accounts is taxable. However, under Section 80TTA, individuals below 60 years can claim a deduction of up to ₹10,000 on savings account interest. Senior citizens can claim up to ₹50,000 under Section 80TTB. TDS is deducted at 10% if total interest exceeds ₹40,000 per year (₹50,000 for senior citizens).

Post Office currently offers a flat interest rate of 4% p.a. across all balance slabs for savings accounts.