The post office SB account interest rate is 4.0% a year this quarter, the same at every branch. Each month's lowest balance from the 10th onward sets that month's interest, and the year's total lands in March.
The account is the hub for every other post office scheme, because MIS, SCSS and TD interest usually land in it. This page covers the rate, the minimum balance, tax relief, everyday features and the charges to avoid.
At a glance
Rate
4.0% a yearMinimum balance
₹500Interest credited
Once a year, end of MarchTax exemption
Up to ₹3,500 single, ₹7,000 jointFacilities
Cheque book, ATM card, net and mobile banking
Post office SB account interest rate per month, explained
The rate is yearly, but the calculation is monthly. For each month, the post office takes the lowest balance between the 10th and the month end, applies 4.0% ÷ 12, and adds up the twelve months. The total is credited at the end of March.
A balance of ₹50,000 kept steady all year earns ₹2,000. If you withdraw ₹20,000 on the 12th of a month and put it back on the 2nd of the next, that month counts only ₹30,000, costing you about ₹67 of interest.
Tip: deposit before the 10th and withdraw after the month's last day when you can.
Savings account interest rate in post office vs banks
| Post office | Large bank | |
|---|---|---|
| Rate | 4.0% | Often 2.5% to 3% |
| Minimum balance | ₹500 | Varies, can be higher |
| Who backs it | The government | Deposit insurance up to ₹5 lakh |
| Branch reach | Every village post office | Fewer in rural areas |
The post office SB rate is higher than most large banks pay on ordinary savings, which makes it a good place to hold money between investments.
Saving account interest rate in post office: same answer, many phrasings
Whether you ask for the saving account interest rate in post office, the post office interest rate on savings account, the post office bank saving account interest rate or the interest rate of post office savings account, it is 4.0%. The SB scheme in post office is this account. In Hindi conversation it is post office me saving account interest rate.
Tax on post office savings interest
Interest from a post office savings account is exempt up to ₹3,500 a year for a single account and ₹7,000 for a joint account, under a special exemption that applies under both regimes. Above that, under the old regime, savings interest can be deducted up to ₹10,000 (seniors have a higher combined limit on interest). In practice, a balance under about ₹87,000 earns interest that is fully tax exempt.
Rules: opening, minimum balance and charges
- Open with ₹500 and keep at least ₹500; falling below it at the year end attracts a maintenance fee.
- Single, joint (two or three adults), or for a minor by a guardian; a child from 10 years can open one personally.
- Only one single savings account per person at the post office.
- An account with no deposit or withdrawal for three years is marked silent; reactivate it with KYC.
- Cheque book and ATM card on request; internet and mobile banking after KYC.
Why every post office saver needs this account
It is the plumbing for everything else. MIS pays monthly interest into it; SCSS credits quarterly interest; TDs pay yearly; RD instalments can be auto debited from it; NSC and KVP maturity can be credited to it. It also unlocks online purchases. Open it first, even if you plan to use only one scheme. See MIS, RD and buying NSC online.
Common searches answered
Post office SB interest rate, SB account interest rate, interest rate in post office savings account and post office savings bank interest rate all refer to 4.0%. People asking for a post office savings account interest rate calculator can multiply their average monthly balance by 0.04: ₹1 lakh earns about ₹4,000 a year. There is no special savings rate for seniors or women.
Problems and fixes
| Problem | Fix |
|---|---|
| Account silent | Submit a KYC form and a deposit or withdrawal to revive it |
| Fee for low balance | Keep ₹500 or more at the year end |
| Scheme interest not landing | Check the account is linked to the scheme at the counter |
| Mobile banking not working | Register the mobile number and complete e KYC |
Every scheme's rate sits on the rate board.
Frequently asked questions
Current post office savings account interest rate?
4.0% a year, credited at the end of March.
How is post office SB interest calculated?
Month by month, using the smallest balance from the 10th to month end.
What is the minimum balance in a post office savings account?
₹500.
Is post office savings interest tax free?
Up to ₹3,500 a year for a single account and ₹7,000 for a joint account.
Can I have two savings accounts at the post office?
Only one single account per person, plus joint accounts.
Can I use a post office savings account like a bank account?
Largely yes. It offers a cheque book, ATM card, mobile banking and transfers, and it links to all post office schemes.