Post Office Savings Account (POSA) interest rate for July-September 2025

Post Office Savings Account (POSA) interest rate for the July-September quarter of FY 2025-26 has been announced by the Finance Ministry. It remains unchanged at 4%.

POSA is a savings account for depositors offered by the Post Office. At present, POSA is offering 4% interest to depositors, which is better than leading banks like the State Bank of India (SBI) and HDFC Bank.

Both SBI and HDFC Bank are currently offering only 2.5% interest to savings account holders.

Banks have been reducing their savings account interest in the wake of repo rate cuts by the Reserve Bank of India (RBI) this year. Since February 2025, the central bank has reduced the repo rate by 100 basis points (1%).

The POSA account can be opened by the following:

• 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.

POSA interest rate: What was expected?

POSA interest rate has remained unchanged at 4% since December 1, 2011.

It was earlier speculated that the Finance Ministry may reduce the POSA interest rate.

We expected that the POSA interest rate is likely to remain unchanged even for the upcoming quarters. More so because POSA is used by the most vulnerable sections, including senior citizens and residents in rural areas.