Post Office Savings Account Last Updated : 20 Oct 2019

Post office savings accounts offer interest rates of 4% per annum for both single and joint accounts. The interest earned is tax free up to Rs. 10,000 each year. The minimum balance to be maintained is Rs. 50 or Rs. 500 and can be opened with just Rs. 20.

Post Office Savings Account
Post Office Savings Account

About Post Office Savings Account

Post Office Savings Account is similar in many ways to a regular savings account. It is considered to be a highly secure instrument to deposit funds into and offers the option of full or partial liquidation of funds at very short notice in case the need arises. These accounts generally offer a guaranteed return on investment and are ideal for senior citizens and people who are looking to earn a regular income without exposure to risk.

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 for opening a Post Office Savings Account. For opening a joint post office savings account, 2 or 3 individuals are required.

Details of post office savings accounts
Minimum initial deposit Rs.20
Minimum balance for account without cheque book Rs.50
Minimum balance or initial deposit for account with cheque book Rs.500
Interest rate 4% p.a.
Tax Free Interest Up to Rs.10,000 p.a.

Features of Post Office Savings Account

The main features of a Post Office savings account are:

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

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:

  • Cheque facility: Cheque facility is available and can be request for existing accounts as well.
  • 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.
  • Minor Accounts: Post Office Savings Account is available to minors. For minors below the age of 10, an account can be opened in their name, but the parent or guardian will be given rights to operate the account on their behalf. Minors of 10 years and above can operate the account on their own.
  • Portability: If you shift your residence or are not happy with the services of the post office branch or for any other reason, you can shift your Post Office Savings Account to a branch of your choice. Only one account can be opened in one post office.
  • Nomination: The facility to nominate someone is made available under these accounts at the time of opening the account. The account holder can also choose to nominate a person to receive the proceeds of this account after their demise at any time.
  • Joint Holdings: 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.
  • 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.
  • Electronic Facilities: Customers can make withdrawals and deposits through any electronic mode in CBS Post offices.
  • Long period for Inactivity: In order to keep the account active you only need to carry out one transaction of a deposit or withdrawal in 3 financial years. The account will not be deemed inactive unless there are no transactions for 3 financial years.

How to Open Post Office Savings Account

follow these simple steps to open a post office savings account.

  • Visit your nearest post office or the official website of India Post and get the application form.
  • Fill the form with appropriate information
  • Furnish the relevant documents, and a passport size photograph.
  • Pay a deposit amount, which cannot be lower than Rs.20.
    • 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 can deposit a maximum of Rs one lakh while joint account holders can deposit a maximum of Rs two lakhs. One of the main features of a Post Office savings account is that there is no lock-in or maturity period. Opening an account of this kind is relatively hassle-free, since one can walk into any post office, complete the formalities with the clerk, and open an account immediately.

Eligibility to Open Post Office Savings Account

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

  • Minors with a minimum age of ten years
  • A guardian on behalf of a minor
  • A person of unsound mind
  • Two or three adults can open a joint account
  • Group Accounts, Institutional Accounts and other accounts like Security Deposit Accounts & Official Capacity Accounts are not permissible.

Post Office Savings Accounts Interest Rate

Post Office savings account interest rate is decided by the Central Government from time to time and is generally between 3% to 4%. Interest is calculated on monthly balances and credited annually.

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

Details Percentage (p.a.)
Rate of Interest 4%

Other Post Office Investment Options

S No Investment Option Rate of Interest (p.a.)
1 Public Provident Fund (PPF) 8% compounded annually
2 Senior Citizen Savings Scheme (SCSS) 8.7%
3 Kisan Vikas Patra (KVP) 7.7 % compounded annually
4 Sukanya Samriddhi Yojana (SSY) 8.5%
5 Post Office Monthly Income Scheme (MIS) 7.3 % payable monthly
6 National Savings Certificate (NSC) 8 % compounded annually

Post Office Savings Account Withdrawals

In a Post Office savings account the amount deposited can be withdrawn at anytime as per the depositor’s needs. The withdrawal is, however, subject to the maintenance of a minimum balance of Rs. 50 in a simple account and Rs. 500 for accounts with cheque facility.

FAQ’s

1. What happens to the amount in the event of the death of the depositor?

If the depositor dies the amount shall go to the nominee. In case the account is without a nomination at the time of the depositor’s death and the amount due is not exceeding Rs 60,000, the Department of Post Office may pay the same to a person appearing before him, who is entitled to receive it or to administer the estate of the deceased.

2. How many accounts can be opened at one post office?

Only one account and one joint account can be opened at one post office

3. How can a person avail of the cheque system facility for a post office savings account?

Application for availing the facility of Cheque System be submitted on Form SB/CQE-4 and requisition for fresh Cheque Book for Savings Account on Form SB/CQE-4A.

4. What is the procedure for opening a Post Office Savings Account?

Opening a Post Office Savings Account is very simple.

  • Procure a form from the post office or online.
  • Submit the duly-filled and signed form along with the required KYC documents and a photograph.
  • Pay the amount you would like to deposit subject to a minimum of Rs.20.
  • Your deposit will be opened for you.
  • For senior citizens, there are separate forms available.

5. What are the documents required to open a Post Office Savings Account?

You need to comply with the KYC norms according to your risk category. Generally, to open a savings account at the post office, you need to submit the following:

  • ID Proof
    • Electoral Photo Identity card
    • Aadhaar
    • Ration Card with photograph
    • Passport
    • Driving License
    • Photo Identity Card issued by recognized, University/ Education Board/ /College/School, Identity card from Central/State Government or PSU.
  • Address Proof
    • Bank or Post Office Passbook/Statement with current address
    • Passport
    • Ration Card with current Address
    • Electricity Bill
    • Telephone Bill not more than three months old
    • Salary Slip from a reputed Employer with current address,
    • Aadhaar
  • One (two in case of EDBO) recent Passport Size Photographs are to be given. In case of Joint Account, photograph of all joint holders should be given.

6.Can I apply for a duplicate passbook?

You can get a duplicate passbook from the sub post offices only. To apply for a duplicate passbook, fill up an application in the prescribed form or manuscript application and submit it along with the prescribed fee, if any, in the form of postage stamp.

7.What are the norms for issuing a Cheque Book?

To be eligible for a cheque book at the time of opening an account, you must make an initial deposit of Rs.500. If you wish to get a cheque book at any other time, you must maintain a minimum balance of Rs.500 in your account and request the post office to issue a cheque book.

8.Can I transfer my post office savings account from one post office to any other post office?

Yes, you can shift your savings account from 1 post office to another.

9.If I have an individual post office savings account, can I modify it to a joint savings account?

Yes, you are allowed to modify your individual post office savings account to a joint post office savings account. You may also do vice versa, wherein, you can change your joint account to an individual account.

10.Do post office savings accounts come with debit or ATM cards?

There a few core banking post offices that provide customers with debit or ATM card options.

11.For keeping my post office savings account active, what is the minimum number of transactions needed?

To keep your account active, you will be required to make at least one deposit or withdrawal transaction in a period of 3 financial years.

12.What is the rate of interest for Joint Post Office Savings Accounts?

For joint and individual post office savings accounts, the rate of interest is 4% p.a.

13.Where can I get a new duplicated passbook?

You can get a new duplicated passbook only at sub post offices.

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Post Office Savings Account Reviews

Page 1 of 10 1 2 3 4 5
  • review Other Loan
    "Hasty investment"
    INDIA POST OFFICE
    0.5 3.5/5 "Pretty good"
    I have invested the money through Recurring Deposit. There is no separate customer care for post office. Since everyone wants incur the postal service i have chosen the RD with them. I am investing the money of Rs. 300 every month. There is a lockin period of 10 years and the interest rate is 7%. No one will help you for this investment.
    Was this review helpful? 0
    , bikaner
    Reviewed on Oct 13, 2019
  • review
    review Other Loan
    "Very Good account "
    INDIA POST OFFICE
    0.5 3.0/5 "Satisfactory"
    My PPF account was opened last 1 year ago like in the year of 2018. I have been investing the money of Rs. 4000 per month and there is a minimum lockin period 5 years and maximum period of 15 years. After 5 years, i can get the loan from this account. They are providing a higher interest rates.
    Was this review helpful? 0
    , kolkata
    Reviewed on Oct 04, 2019
  • review Other Loan
    "Very Good Account"
    INDIA POST OFFICE
    0.5 4.0/5 "Great!"
    3 years ago, i have opened my savings account from Indian post office. For the savings account, they are giving a higher interest rate so i have chosen them. I have gone to their branch and the response is really fine. They have given me a IPPB QR card from that i can do a withdrawal without papers.
    Was this review helpful? 1
    , kolkata
    Reviewed on Oct 04, 2019
  • review Other Loan
    "Good investment plan"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    I have invested the money through RD in Post office and the interest rate is less. There is a lockin period of 36 months and they have reduced the interest rates now. I am paying the amount of Rs. 2500 and i have selected the duration of 60 months. I have selected post office because the executive come to my office and collected the money and the post office is located in nearby my place.
    Was this review helpful? 0
    , chennai
    Reviewed on Sep 22, 2019
  • review Other Loan
    "Trustworthy investment"
    INDIA POST OFFICE
    0.5 4.5/5 "Excellent!"
    Monthly I am paying Rs.500 to Post office for the RD investment, it has maturity period of 18 years. I used to visit to their branch for making my deposit, the service is prompt, the staffs are cooperative on my queries. They do have online option to make my payment, but I am not sure about the interest but I believe its a government sector so my investment will be safe.
    Was this review helpful? 0
    , bangalore
    Reviewed on Sep 22, 2019
  • review Other Loan
    "Much trusted account"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    Almost 6 years ago, i have opened the savings account from Post office. For the savings purpose, i have opened this account. I'm maintaining a minimum balance of Rs. 5000 every month. They have not provided me any debit card and the employee response is fine.
    Was this review helpful? 0
    , nagpur
    Reviewed on Sep 19, 2019
  • review Other Loan
    "Trust worthy"
    INDIA POST OFFICE
    0.5 4.0/5 "Great!"
    There is no minimum balance maintenance to carry in Post office account, there is no limitation as well on the deposits. The Post Office agents used to visit to my place to collect the money and they do have online banking. The rate of interest rate is also good around 7% per annum.
    Was this review helpful? 1
    , bangalore
    Reviewed on Sep 12, 2019
  • review Other Loan
    "Safe and Secured Investment"
    INDIA POST OFFICE
    0.5 4.0/5 "Great!"
    I have Post Office PPF account, I used to deposit monthly Rs.1000 it has the term of 4 years. Then I have option to take the partial withdrawal but it has long term locking period. For depositing the money, there is an executive they collect and update it.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Sep 09, 2019
  • review Other Loan
    "Good for girl child"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    I took Sukanya Samriddhi Yojana in post office for my two daughter, I normally deposit Rs.25,000 per annum it has the locking period of 14 months. They are providing 7.8% of interest for per annum, I think the amount gets doubled at the time of maturity. The post office staffs are good they help on my queries.
    Was this review helpful? 3
    , hyderabad
    Reviewed on Aug 24, 2019
  • review Other Loan
    "Good for future investment and tax saving"
    INDIA POST OFFICE
    0.5 3.0/5 "Satisfactory"
    I opened NSC account from Post office it has the locking period of five years, its can deposit Rs.500 to max,I have added one nominee. I submitted the basic documents to open this account, I got the certificate from post office for NSC, it give 80c tax benefits.
    Was this review helpful? 0
    , mumbai
    Reviewed on Aug 20, 2019
  • review Other Loan
    "Good Investment"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    In post office I have PPF account its good, I used to invest Rs. 5000 per month I get Rs. 60,000 in a year, they are providing tax benefits under 80c section it has the locking period of 15 years, I can do the partial withdrawals in 10 years. Post office is very safe secured for investment.
    Was this review helpful? 0
    , burdwan
    Reviewed on Aug 09, 2019
  • Post Office Fixed Deposit
    "Good for future"
    INDIA POST OFFICE
    0.5 3.0/5 "Satisfactory"
    In post office rate of interest is higher for the fixed deposit when compared to the bank, I invested Rs. 5000 on monthly basis its comes in a year Rs. 60,000 after 5 years I got Rs. 3.75,000 I got Rs. 75,000 extra. The service is not comfortable if we have any relative who working there it would supportive or else difficult.
    Was this review helpful? 17
    , burdwan
    Reviewed on Aug 09, 2019
  • review Other Loan
    "Smart and Safe investment"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    My PPF account belongs to Post office their service is always good since its a government, the interest rate is same as per the RBI, every financial year the interest get change. I make Rs. 20+ investment in a year, it has locking period of 15 years. For depositing amount I need to visit to the branch.
    Was this review helpful? 0
    , mumbai
    Reviewed on Aug 03, 2019
  • review Other Loan
    "The Best"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    I have SB account with post office its a zero balance maintenance, in my location their office time start at 7 am hence its good for me. I believe post office is providing 4% of interest per annum. The debit card feature is good I can use in any bank atm , monthly I can use it five time. The customer support is also good .
    Was this review helpful? 0
    , coimbatore
    Reviewed on Aug 03, 2019
  • Post Office Fixed Deposit
    "Safe and Secured"
    INDIA POST OFFICE
    0.5 4.0/5 "Great!"
    My Post office branch is located in own campus hence there is no queue. I opened the fixed deposit, I made one time investment for five years its has tax exemption. They are providing 7% of interest for per annum. I believe it has online access as well.
    Was this review helpful? 13
    , bangalore
    Reviewed on Aug 01, 2019
  • review Other Loan
    "Good savings scheme"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    I was paid the premium on a yearly basis and i can also choose the monthly basis premium. I have been investing some money in post office because the interest rate. Its a multi investing scheme. I am investing Rs. 24000 on a yearly basis. This is type of RD basis and the sum assured amount is Rs. 1.5 lakhs. In Indian post office customer service is poor.
    Was this review helpful? 2
    , kolkata
    Reviewed on Jul 31, 2019
  • review Other Loan
    "Safe and secured maintenace"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    The Post office account experience is good but the service is not proactive as like private sector, most of time their server wont work properly and we need to wait in long queue. Only thing its a government sector hence our money is very safe. I have joined account with mother hence I am maintain it, I guess they donâ??t have online banking.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jul 27, 2019
  • review Other Loan
    "Excellent"
    INDIA POST OFFICE
    0.5 5.0/5 "Blown Away!"
    I have a salary account wtih India Post Office. It is a zero balance account . I have been using this account for the last 10 years. Their customer service is good. Branch is near my residence. Very few ATM but withdrawal is free from other ATMs.
    Was this review helpful? 0
    , lucknow
    Reviewed on Jul 20, 2019
  • Post Office Fixed Deposit
    "Service needs to be improved"
    INDIA POST OFFICE
    0.5 3.0/5 "Satisfactory"
    I do not use Post office service often because its inconvenient and they recently started the debit card service or else we need to visit to the branch for the withdrawing the money in the queue. But Post office fixed deposit interest has more interest, my mother is taking care of it.
    Was this review helpful? 6
    , gurgaon
    Reviewed on Jul 13, 2019
  • review Other Loan
    "Need improvement on the online service"
    INDIA POST OFFICE
    0.5 3.0/5 "Satisfactory"
    I am maintaining PPF account with post office, I don't find any online service for each and every query. For the deposits I need to visit to their branch. It should be digitized, it has locking period of 15 years. I can deposit Rs.500 to max in a year. I believe they are providing 8% of interest per annum. I opened the account manual process but the branch has less crowd compared to SBI hence its make easier.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jul 12, 2019
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