Post Office Savings Account (POSA) interest rate from April 1: How much will you get in the new FY?

The government has decided to keep the POSA interest rate unchanged for the first quarter of the new financial year starting April 1, 2026. This means you can continue to get 4% interest on your POSA deposits, which is better than savings account interest rates of leading banks like SBI and HDFC Bank. These banks are currently offering only 2.5% interest on savings account deposits.

What is POSA?

POSA is a savings account, just like savings deposit accounts in any bank. You can open a POSA account only in the Post Office. While several banks have reduced their savings account interest rates since last year, following the repo rate cuts by the Reserve Bank of India (RBI), there has been no change in the POSA interest rate.

Interestingly, the interest rate for POSA deposits has remained unchanged at 4% since 2011.

Who can open a POSA account?

The following persons can open a POSA account:

• A single adult

• Two adults only (Joint A or Joint B)

• A guardian on behalf of a minor

• A guardian on behalf of a person of unsound mind

• A minor above 10 years in his own name.

• An individual can open only one savings account in the post office.

The next review of the POSA interest rate will be done on June 30, 2026.