India Post has always been one of the most trusted financial institutions for common citizens, especially in rural and semi-urban areas. Among its many small savings schemes, there is a special savings plan for differently-abled persons (Divyang Savings Account).
The purpose of this scheme is simple yet impactful: to provide a safe, government-backed, and inclusive savings option for differently-abled individuals who often face financial insecurity.
What is the Post Office Differently-Abled Savings Scheme?
This is a special account under India Post’s small savings schemes, designed specifically for differently-abled persons to help them save and earn a steady, safe return.
- Scheme Name: Post Office Differently-Abled Savings Scheme
- Introduced: After 2011, to align with financial inclusion policies
- Objective: Provide security, guaranteed returns, and financial independence to differently-abled persons.
Key Features
- Eligibility
- Account can be opened in the name of a differently-abled person.
- If the person is a minor or has a severe disability, a parent/guardian can open and manage the account.
- Deposit Rules
- Minimum deposit: ₹20
- Maximum deposit: Up to ₹1,00,000 (depending on account type).
- Interest Rate
- Current (2025): 4.0% – 7.1%, depending on the scheme (Savings, RD, TD, MIS).
- Interest is compounded quarterly.
- Nomination Facility
- Compulsory at the time of account opening.
- Account Type
- Single account (in the name of the differently-abled person).
- Joint account only allowed with guardian in special cases.
Eligibility Criteria
- Must be a resident Indian.
- Age: 10 years or above (guardian required for minors).
- Valid disability certificate or UDID card (Unique Disability ID card) is mandatory.
Documents Required
- Account opening form (Form A)
- Aadhaar card (ID proof)
- PAN card (for KYC)
- Passport-size photographs
- Disability certificate / UDID card
- Address proof (utility bill, ration card, etc.)
- Guardian’s declaration (if applicable)
Deposit & Withdrawal Rules
- Deposits
- Minimum balance: ₹20
- Flexible deposits for savings accounts
- RD/TD/MIS accounts also available under this scheme
- Withdrawals
- Account holder can withdraw using signature/thumb impression
- In case of severe disability, guardian operates withdrawals
- Passbook required for all transactions
Interest Rates (2025)
| Scheme Type | Interest Rate (Approx 2025) |
|---|---|
| Savings Account | 4.0% p.a. |
| Recurring Deposit (5 Years) | 6.7% p.a. |
| Time Deposit (1–5 Years) | 6.9% – 7.1% p.a. |
| MIS (Monthly Income Scheme) | 7.0% p.a. |
| SCSS (Senior Citizen Saving Scheme, for disabled senior citizens) | 8.2% p.a. |
Note: Rates are revised quarterly by the Government of India.
Tax Benefits
- Deposits and interest may qualify for deductions under Section 80C and 80U of the Income Tax Act.
- TDS (Tax Deducted at Source) applicable if annual interest crosses ₹40,000 (₹50,000 for senior citizens).
- For differently-abled persons, certain exemptions may apply depending on disability status.
Nominee & Death Claim Rules
- If the account holder passes away, the nominee can claim the amount.
- Process:
- Submit death certificate
- Passbook + claim form (SB-30)
- Nominee’s ID proof
- If no nominee is registered, legal heirs must provide a succession certificate.
Example Case Study
Case: Ramesh (45, visually impaired)
- He opened a Post Office RD account with ₹1000 monthly deposit for 5 years.
- Interest rate: 6.7% p.a.
- At maturity: Around ₹70,000+ (principal + interest).
- If Ramesh passes away, his nominee (brother) can claim the amount easily by submitting required documents.
Advantages
- 100% Government-backed → Zero risk
- Tailor-made for differently-abled persons
- Low minimum deposit (affordable for all)
- Tax benefits under Income Tax Act
- Guardian facility for minors/severely disabled
- Nomination option ensures family security
Limitations
- Deposit limit (not unlimited like bank FDs)
- Interest rates may be lower than market-based schemes
- Claim process becomes lengthy if nominee is not registered
FAQs
Q1. Can NRIs open this account?
No, only resident Indians are eligible.
Q2. Is joint account possible?
Only with guardian in case of minor/severe disability.
Q3. What if nominee is not added?
Legal heirs need to present a succession certificate.
Q4. Is loan facility available?
Not on savings accounts, but PPF/TD may offer loan options.
Q5. Are deposits insured?
Yes, fully backed by the Government of India.
Conclusion
The Post Office Differently-Abled Savings Scheme is one of the most important financial inclusion steps taken by the government. It ensures that differently-abled citizens get a safe, tax-friendly, and reliable savings option without worrying about market risks.
If you or your family member is differently-abled, this scheme is worth considering. Ensure nominee registration and updated documents for smooth claim settlement.
Disclaimer: This article is for educational purposes only. Interest rates, rules, and benefits may change as per Government of India guidelines. Please verify with your nearest Post Office before making any financial decision.
