Post Office Savings Account

A Post Office Savings Account is a safe and easy way to save money, backed by the government. It requires a small initial deposit and offers a guaranteed interest rate, making it a secure choice for those who don’t want risks. You can open it at any post office, and it allows both full and partial withdrawals whenever needed. In India, the minimum balance required is ₹500, and there’s no limit on how much you can deposit. This account is especially useful for senior citizens and anyone looking for stable returns without market risks.

Features of a Post Office Savings Account

Safety & Reliability: Fully backed by the government, making it one of the safest savings options.
Minimum Balance Requirement: A minimum deposit of Rs. 500 is required to open an account.
Interest Rate: The interest rate is revised quarterly and is currently around 4% per annum (subject to change).
Tax Benefits: Interest earned up to Rs. 10,000 per annum is tax-free under Section 10(15)(i) of the Income Tax Act.
Account Type: Available as a single or joint account.
Easy Accessibility: Account holders can access funds at any post office across India.
Cheque & ATM Facility: Offers cheque book and ATM facilities for convenient withdrawals.
Nomination Facility: Allows nomination at the time of account opening or anytime later.

Benefits of a Post Office Savings Account

Guaranteed Returns: Since it is government-backed, the risk factor is negligible.
Low Minimum Balance: Maintaining a balance of Rs. 500 makes it accessible for everyone.
Liquidity: Unlike fixed deposits, money can be withdrawn anytime.
No Market Risks: Returns are stable and do not fluctuate like market-linked investments.
Eligibility for Senior Citizens & Minors: Minors above 10 years can open an account under guardian supervision.
Cheque & ATM Services: Request a cheque book and, for eligible customers, an ATM/Debit card is available.
Minor Accounts: Children can open an account, with those under 10 requiring a guardian to operate the account.
Portability: You can transfer your account to any post office branch.
Nomination: Assign a nominee to receive funds in the event of your death.
Joint Account: Two or three adults can open a joint account.
Electronic Banking: Withdrawals and deposits can be processed electronically at CBS (Core Banking System) post offices.
Account Activity: To keep the account active, at least one transaction (deposit/withdrawal) is needed every three years.

Eligibility Criteria

Individuals: Resident Indians above the age of 18.
Minors: Individuals aged 10 and above can open and operate the account independently.
Joint Accounts: Up to three adults can open a joint account together.

Required Documents

To open a Post Office Savings Account, the following documents are necessary:

Account Opening Form: Duly filled and signed.
Photographs: Two recent passport-sized photographs.
Identity Proof: Aadhaar card, PAN card, passport, or driving license.
Address Proof: Aadhaar card, utility bills (electricity, water, telephone), passport, or ration card.

How to Open a Post Office Savings Account

Obtain the Application Form: Visit the nearest post office or download the form from the official India Post website.
Fill in the Form: Provide accurate personal details and affix the required photographs.
Attach Necessary Documents: Include self-attested copies of identity and address proofs.
Initial Deposit: Make a minimum deposit of Rs. 500 (in cash or cheque).
Submit the Application: Hand over the completed form, documents, and deposit to the post office staff.
Verification Process: The post office will verify the submitted documents and details.
Account Activation: Upon successful verification, the account will be activated, and a passbook will be issued.

Interest Rate & Tax Implications

The interest rate is revised every quarter by the Ministry of Finance.
Interest earned is taxable if it exceeds Rs. 10,000 annually.

Comparison with Other Savings Accounts

Feature	Post Office Savings	Bank Savings
Interest Rate	~4% p.a.	2.5% – 6% p.a.
Minimum Balance	Rs. 500	Rs. 1,000 – Rs. 10,000
Safety	High (Govt. backed)	Depends on the bank
Tax Benefit	Up to Rs. 10,000	Varies

Additional Services

Internet Banking: Some post offices provide online banking services for easy account management.
Mobile Banking: Manage your account anytime, anywhere using mobile banking.
Digital Statements: Choose e-statements for convenient record-keeping.
Request a Cheque Book: Apply for a cheque book when needed.
Apply for an ATM Card: Get an ATM/Debit card for easy cash withdrawals.
Register for Online Banking: Sign up for internet and mobile banking services.
Link Aadhaar: Connect your Aadhaar to your account for verification.
Join Government Schemes: Enroll in schemes like APY, PMSBY, and PMJJBY for added financial benefits.

New Service Charges for Post Office Savings Accounts

If you're planning to open a Post Office Savings Account, be aware of some service charges:

Duplicate cheque book: ₹50
Deposit receipt: ₹20 per receipt
Account statement: ₹20 per statement
Nomination changes or cancellation: ₹50
New passbook (if lost or damaged): ₹10
Cheque book: Free for up to 10 leaves per year, then ₹2 per cheque
Account transfer or pledge: ₹100
Cheque dishonor fee: ₹100

TDS on Interest Earnings

Interest up to ₹10,000 in a financial year is tax-free under Section 80TTA of the Income Tax Act, 1961. No TDS is applicable on earnings within this limit.

PAN & Aadhaar Requirement for Account Holders

Both PAN and Aadhaar are now mandatory to open and maintain a Post Office Savings Account. If you don’t have an Aadhaar number when opening the account, you must show proof of enrollment and submit your Aadhaar within six months. Existing account holders without Aadhaar must submit it by April 1, 2023.

Additionally, you need to provide your PAN within two months if:

Your account balance exceeds ₹50,000 at any time.
You deposit more than ₹1 lakh in a year.
You withdraw or transfer more than ₹10,000 in a month.

Deposit & Withdrawal Rules

Transactions must be made in whole rupees.
The minimum deposit is ₹500.
Withdrawals are permitted only if the balance is above ₹500.
The minimum withdrawal amount is ₹50.
If the balance drops below ₹500 at the end of the year, a ₹50 maintenance fee will be charged.
As of March 2021, the withdrawal limit at Gramin Dak Seva (GDS) branches increased from ₹5,000 to ₹20,000.

How to Check the Balance of a Post Office Savings Account?

You can check your Post Office Savings Account balance using the following methods:

Missed Call Service

Use the numbers below to access balance-related services via missed calls:

Balance Enquiry: Call 8424046556
Register for Missed Call Service: Call 8424054994
Mini Statement: Call 8424026886

SMS Banking

Send an SMS to 7738062873 from your registered mobile number using these codes:

For Balance Enquiry: Send ‘BAL’
For Mini Statement: Send ‘MINI’
To Register for SMS Banking: Send ‘REGISTER’

FAQs on Post Office Savings Account

How many accounts can be opened at a single post office? Each post office allows you to open one individual account and one joint account.
Can I shift my savings account to another post office? Yes, you can transfer your Post Office Savings Account from one branch to another.
What happens if the account holder passes away? - If a nominee is assigned, the balance is transferred to them.
- If there is no nominee and the balance is under Rs. 60,000, the Department of Post may release the funds to a legal heir.
Are ATM or debit cards available for Post Office Savings Accounts? Most post offices do not provide ATM or debit card services. However, select core banking branches do. Check with your local post office for availability.
What is the interest rate for Post Office Savings Accounts? The interest rate is 4% per annum for both individual and joint accounts.
How can I apply for a cheque book? - When opening an account, deposit Rs. 500 to request a cheque book.
- If requesting later, maintain a minimum balance of Rs. 500 and apply at the post office.
How can I reactivate a dormant account? A Silent Account (inactive for three years) can be reactivated by submitting a fresh application along with a KYC form.
Can I switch from an individual to a joint account or vice versa? Yes, you can convert an individual account into a joint account and vice versa.
What is the minimum balance required to maintain the account? The minimum balance is Rs. 500. Failing to maintain this for a year incurs a Rs. 100 maintenance fee.
How often should I transact to keep my account active? You need to make at least one deposit or withdrawal every three financial years to keep your account active.
Can I obtain a duplicate passbook? Yes, duplicate passbooks are available only at sub-post offices. Apply using the prescribed form and pay the applicable fee.
Where can I avail of the cheque system facility? Submit Form SB/CQE-4 for cheque facility activation and Form SB/CQE-4A to request a new cheque book.
What is the withdrawal limit in rural post offices (GDS branches)? The withdrawal limit at Gramin Dak Seva (GDS) branches is Rs. 20,000, increased from Rs. 5,000.
Can I withdraw money from my Post Office Savings Account? Yes, withdrawals are permitted anytime, provided the minimum balance of Rs. 500 is maintained.