Post Office Savings Account

Anyone can open a Post Office Savings Account and earn an annual interest of 4% per annum. The minimum amount needed to open the account is Rs. 20. The minimum balance that must be maintained is Rs. 500 if you have taken cheque facilities. The first Rs. 10,000 earned as interest per year is exempt from tax.

Features & Benefits of Post Office Savings Accounts

• The account can be opened with as little as Rs. 20
• The account can be opened only using cash
• If minimum balance for non-cheque accounts is Rs. 50 and Rs. 500 for accounts with cheque facilities
• They can be operated by individuals or jointly by up to 3 people
• The daily ATM withdrawal limit is Rs. 25,000
• These accounts provide nomination facilities too
• At least 1 transaction is required every 3 years to keep the account active
• Deposits can be made via electronic means at CBS post offices. The same goes for withdrawals
• Accounts can be opened in the names of minors too. They can be transferred to the minor once he/she comes of age
• The account can be transferred from one post office to another

Interest earned in Post Office Savings Scheme – 4% per annum as of 10th July, 2019

The current interest rate offered on the Post Office Savings Account is 4% per annum. It is paid annually, unlike the Monthly Income Scheme where the interest is paid monthly. The first Rs. 10,000 of interest earned each year is tax free. Tax will be applicable on the remainder according to the prevailing income tax slab.

Documents Required to Open a Post Office Savings Account

You will need 1 to 2 passport size photographs. Apart from that, you will need to furnish ID proof and address proof. You can submit the following documents for these purposes:

ID Proof

• Electoral Photo Identity card
• Ration Card
• Passport
• Driving License
• Photo Identity Card from a recognised educational institute
• Letter issued by the Unique Identification Authority of India (UIDAI)

Address Proof

For address proof, the documents provided must have the current address mentioned on them.

• Bank or Post Office Passbook
• Passport
• Ration Card
• Utility bills such as electricity and telephone bills
• Salary Slip from a reputed Employer
• Certificate from any Public Authority
• Letter issued by the Unique Identification Authority of India (UIDAI)

FAQs about Post Office Savings Account

1. Can I open multiple post office savings accounts?

No. You can only open one account at a time. To open a new Post Office Savings Account, you’ll have to close the old one.

2. Can I turn my single account into a joint account?

Yes. Single accounts can be turned into joint accounts. Joint accounts can also be turned into single accounts.

3. Can I get the cheque facility after opening an account without cheque facility?

Yes. Even if you open an account without opting for the cheque facility, you can opt for it at a later stage. The only condition is that once you opt for cheques, you’ll have to maintain a minimum balance of Rs. 500 in the account.

4. Can I withdraw my funds using ATMs?

Yes. The Post Office Savings Account comes with ATM facilities.

5. How much can I withdraw from the ATM?

The daily withdrawal limit for the ATM is Rs. 25,000.

6. Is there a limit on the transaction amounts?

Yes. The daily cash withdrawal limit per transaction is Rs. 10,000.

7. If I lose the passbook can I get a duplicate?

Yes. To replace a lost passbook you will have to apply for it using the appropriate form and affixing a stamp of appropriate value on it.