Post Office Savings Account - Guide for Secure & Smart Banking (2024)

For more information, Check out related articles:PPF Account Post Office, Sukanya Samriddhi Yojana Post Office, NSC Post Office Saving Scheme & NSC Post Office Interest Rate

In order to open a Post Office Savings Account, you need to be an Indian and an adult. A minor will have to be a minimum of 10 years to be eligible to open a Post Office Savings Account. For opening a joint post office savings account, 2 or 3 individuals are required.

How to Open Post Office Savings Account

The following these simple steps to open a post office savings account.

1. Step 1: Visit your nearest post office or the official website of India Post and get the application form.
2. Step 2: Fill the form with appropriate information
3. Step 3: Furnish the relevant documents, and a passport size photograph.
4. Step 4: Pay a deposit amount, which cannot be lower than Rs.20.
5. Step 5: If you want to get a post office savings account without a cheque book, you will need to pay a deposit amount of at least Rs.50.

Single account holders may deposit up to Rs.1 lakh, while joint account holders may deposit up to Rs.2 lakh. One of the main features of a Post Office savings account is that there are no lock-in or maturity dates.

Opening this form of account is very easy, as one can walk into any post office, complete the appropriate paperwork with the clerk, and create an account right immediately.

New Service Charges on Post Office Savings

If you want to open a post office savings scheme, keep in mind that a few service charges are applicable as well:

1. Issuing duplicate cheque book: Rs.50
2. Issuing deposit receipt: Rs.20 per receipt
3. Issuing account statement: Rs.20 per statement
4. Cancellation or change of nomination: Rs.50
5. Passbook issuance in lieu of missing or mutilated certificate: Rs.10 per registration
6. Issuing a cheque book in Savings bank account: No fee will be charged up to 10 leaves in a financial year. (Rs.2 per cheque leaf thereafter)
7. For transferring an account, and pledging of an account: Rs.100
8. Cheque dishonor fee: Rs.100

Eligibility to Open Post Office Savings Account

The following individuals are eligible to open a Post Office savings account:

1. Minors with a minimum age of ten years
2. A guardian on behalf of a minorbelow the age of ten years
3. A person of unsound mind
4. Two or three adults can open a joint account
5. Group accounts, institutional accounts, and other types of accounts, such as official capacity accounts and security deposit accounts, are not allowed.

Documents Required for Post Office Savings Account

The documents required to open a post office savings account are as follows:

1. Post office savings account application form

1. Identity proof: Aadhaar card, ration card, passport, driving licence, etc.
2. Address proof: Passport, PAN card, electricity bill, Ration card, etc.
3. Recent passport size photographs

Post Office Savings Accounts Interest Rate

The Central Government periodically determines the interest rate for Post Office savings accounts, which is typically between 3% and 4%. Monthly balances are used to calculate interest, which is credited annually.

Post Office Savings Accounts earn a fixed rate of interest throughout the year, subject to change from time to time, as declared. Currently, the interest rate is as given below:

Other Post Office Investment Options

Post Office Savings Account Withdrawals

The amount put in a Post Office savings account can be taken out whenever the depositor wants it. However, in order to make the withdrawal, there must be a minimum balance of Rs. 500 for accounts with a cheque capability and Rs. 50 for simple accounts.

Features of Post Office Savings Account

The main features of a Post Office savings account are:

1. You can choose to close the account at any time of his or her choosing
2. Minors above the age of 10 years can operate their accounts
3. To keep the account active at least one deposit or withdrawal must be done once in 3 years
4. The account can be opened only using cash
5. Nomination facility is available at the time of opening the account and after opening the account
6. Interest earned is tax free up to Rs 10,000 per year
7. Income tax relief is available on the amount of interest under the provisions of section 80L of the Income Tax Act.
8. The account can be transferred from one post office to another
9. Single accounts can be converted to joint accounts and vice versa
10. Deposits and withdrawals can be done through any electronic mode in CBS Post offices.
11. Transactions can be done via ATMs
    

Post Office Savings Account – TDS Implication

In a financial year, interest earnings up to Rs. 10,000 are not subject to tax (no TDS). Section 80TTA of the Income Tax Act of 1961 governs this clause.

PAN and Aadhaar are now required for Post Office Savings Accounts

The most current announcement from the Ministry of Finance states that there are certain requirements for creating and keeping up a Post Office Savings account. To register for a new account, you need to provide both your PAN and Aadhaar number. During the account opening process, you must provide proof of your enrollment or application for an Aadhaar number if you haven't yet obtained one. After that, within six months of the account opening date, you have to give your Aadhaar number to the Accounts Office.

With effect from April 1, 2023, existing Post Office Savings accounts without Aadhaar information must provide your Aadhaar number within a six-month window. Additionally, you must submit your PAN within two months of the occurrence of any of the following events, whichever occurs first, if you did not supply it while starting the account.

1. When the account amount at any given time surpasses Rs.50,000.
2. When an account receives more than Rs 1. lakh in credits in a financial year.
3. When there are more than Rs.10,000 in withdrawals and transfers from the account in a given month.

How to Open a Savings Account at the Post Office

The steps to open a Post Office Savings Account are as follows:

1. Obtain the application and KYC form using the link provided above and fill it out completely.
2. Send these forms, the aforementioned documents, and Rs. 500 to a local Post Office.
3. In two business days following the successful completion of the steps listed above, the savings account will be opened.

Post Office Savings Account Benefits

Customers who wish to open these accounts have access to cheque and ATM facilities. Some attractive Benefits of Post Office Savings Accounts have been listed below:

1. Cheque facility: Cheque facility is available and can be request for existing accounts as well.
2. ATM/Debit card: For those account holders who have maintained the prescribed minimum balance on the day of issuance of the debit card, CBS Post Offices can grant ATM/Debit cards.
3. Minor Accounts: Minors can open Post Office Savings Accounts. If a juvenile is younger than ten years old, they can open an account in their name, but their parent or guardian will have the authority to manage the account on their behalf. Accounts can be operated independently by minors who are 10 years of age or older.
4. Portability: You can move your Post Office Savings Account to any branch of your choosing if you move, if you're dissatisfied with the post office branch's services, or for any other reason. In a single post office, only one account may be opened.
5. Nomination: Upon opening the account, the option to nominate someone is made available under these accounts. The account holder may, at any time, choose a beneficiary to receive the account's proceeds in the event of their passing.
6. Joint Holdings: Under the joint account facility, two or three adults may jointly hold an account. Both a single account and a joint account may be transformed.
7. Tax Exemptions: Two or three adults are allowed to hold an account together under the joint account facility. A single account can be converted to a joint account and vice versa.
8. Electronic Facilities: Customers can make withdrawals and deposits through any electronic mode in CBS Post offices.
9. Long period for Inactivity: You simply need to complete one deposit or withdrawal transaction every three fiscal years to keep the account active. Until there are no transactions for three financial years, the account will not be considered dormant.
   

Deposits and Withdrawals from Post Office Savings Accounts

Key things to remember including the following:

1. All remittances and deposits must be made in full rupees.
2. The smallest withdrawal is 50 rupees.
3. A minimum deposit of Rs.500 deposit is needed.
4. Only when the account balance surpasses Rs.500 are withdrawals allowed.

1. If the minimum amount of Rs.500 is not kept for the duration of the financial year, a Rs. 50 account maintenance fees will be charged.
2. With effect from March 2021, the per-customer withdrawal limit at Post Office GDS (Gramin Dak Seva) Branches was raised from Rs.5,000 to Rs.20,000.

Additional Facilities available on Post Office Savings Account

To obtain the following extra services for your PO Savings Account, please download the necessary form, fill it out, and return it to the local Post Office:

1. Request for a Cheque Book

1. Application for an ATM Card
2. Application for e-banking/mobile banking services
3. Aadhaar Seeding Request
4. Enrollment in the Atal Pension Yojana (APY)
5. Enrollment in the Pradhan Mantri Suraksha Bima Yojana (PMSBY)

1. Enrollment in the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

How to activate Indian Post internet banking for new users?

The following are the steps to activate Indian Post internet banking for new users:

Step 1: Visit the official website of Indian Post eBanking website

Step 2: Click on ‘New User Activation’ option

Step 3: Enter the Customer ID and Account ID

Step 4: Once your activation process is completed, User ID will be received by the new users within 48 hours

How to Log into Post Office Savings Account eBanking?

The following are the steps to log into the eBanking Savings Account of Post Office:

Step 1: Visit the official portal of India Post eBanking

Step 2: Enter the User ID

Step 3: Click on Log in

Step 4: You can access your account after logging into the account

Step 5: You can perform different banking activities, such as balance check, fund transfer, etc., after logging into eBanking account

How to Check Account Balance of Post Office Savings Account?

The following the ways to check account balance of Post Office Savings Accounts:

Missed Call :

The following are the contact numbers for missed call service for checking account balance of Post Office Savings Account:

1. Balance Enquiry: 8424046556
2. Registration for missed call service: 8424054994
3. Mini Statement: 8424026886

SMS Banking:

Send SMS to 7738062873 from registered mobile number with the respective SMS code for the following services:

1. For Balance Enquiry: ‘BAL’
2. For Mini Statement: ‘MINI’
3. SMS Banking Registration: ‘REGISTER’

Points to Remember About Withdrawals or Deposits in a Post Office Savings Account

The following are some of the significant points to remember about withdrawals in Post Office Savings Account:

1. Minimum deposit and withdrawal amount are Rs.500 and Rs.50, respectively
2. Withdrawals or deposits can be done in whole rupees only
3. If balance is above Rs.500, withdrawal can be done
4. If the minimum balance (Rs. 500) is not maintained for one financial year, then Rs.100 deducted as Account Maintenance Fee

1. Withdrawal limit hiked from Rs. 5,000 to Rs. 20,000 per customer at Post Office GDS (Gramin Dak Seva) Branches