Post Office Savings Account (POSA) offers 4% interest rate for January-March 2026

There is no change in Post Office Savings Account interest rate for January-March quarter. This means you can continue to get 4% interest on your POSA deposits.

The Post Office Savings Account interest rate for the October-December quarter of FY 2025-26 was announced by the Ministry of Finance on September 30, 2025. The Ministry had then also decided to keep the interest rate of this popular savings account unchanged at 4%.

POSA is a savings account, just like savings deposit accounts in bank. You can open a POSA account in the the Post Office.

At present, POSA is offering 4% interest to depositors, which is higher than the savings account interest rates of some leading banks like the State Bank of India (SBI) and HDFC Bank. At present, these banks are offering only 2.5% interest on savings account deposits.

While several banks reduced their savings account interest in the wake of repo rate cuts by the Reserve Bank of India (RBI) in 2025, there was no change in POSA interest rate. Interestingly, the POSA interest rate has remained unchanged at 4% since 2011.

The RBI reduced the repo rate by 1.25% in 2025.

Who is allowed to open a POSA account?

The following 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 savings account offered by the post office is widely used by the most vulnerable sections, including senior citizens and residents in rural areas and small towns.