Post Office Savings Account (POSA) interest rate for July-September 2026 declared: Better than banks?

Key details of POSA?

Just like any savings account in a bank, you can open a POSA account in the post office. While many banks have reduced their savings account interest rates since 2025 after the repo rate cuts by the Reserve Bank of India (RBI), there has been no change in the POSA interest rate.

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

A POSA account can be opened by a single adult or jointly by two adults only. A guardian on behalf of a minor, or a guardian on behalf of a person of unsound mind, can also open this account. Moreover, a minor above 10 years can also open a savings account in the post office in his own name.

The Post Office allows a person to open only one savings account. The next review of the POSA interest rate will be done on September 30, 2026.