Post Office Savings Account (POSA) interest rate for October-December 2025: Better than SBI, HDFC

There is no change in the interest rate for Post Office Savings Accounts (POSA). However, the interest rate offered to POSA depositors is higher than the savings account interest rates offered by banks like SBI and HDFC Bank.

"The rates of interest on various Small Savings Schemes for the third quarter of FY 2025-26, starting from 1st October, 2025 and ending on 31st December, 2025 shall remain unchanged from those notified for the second quarter (1st July, 2025 to 30th September, 2025) of FY 2025-26," the finance ministry said in a notification.

POSA is a savings account for depositors offered by the Post Office.

POSA will continue to offer 4% interest to depositors, which is better than leading banks like the State Bank of India (SBI) and HDFC Bank. These banks are currently offering only 2.5% interest to savings account holders.

Several banks have reduced their savings account interest in the wake of repo rate cuts by the Reserve Bank of India (RBI) in 2025. Since February 2025, the RBI has reduced the repo rate by 100 basis points (1%).

Who can open POSA?

As per Post Office website, a 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: 4% since 2011

POSA interest rate has remained unchanged at 4% since December 1, 2011. It was earlier speculated that the Finance Ministry may revise the POSA interest rate.

POSA is used by the most vulnerable sections, including senior citizens and residents in rural areas.