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The Post Office Savings Account is a deposit scheme provided and regulated by the Post Office of India. It is backed by the Central Government of India through notification no. G.S.R. 921(E) under section 3A of the Government Savings Promotion Act, 1873 (5 of 1873). The Post Office Savings Scheme aims to help the individual depositors in depositing their money and earning a fixed rate of interest. This scheme aims to reach rural areas, low-income earning investors, and underprivileged individuals. 

With the help of this initiative, many depositors living in rural areas are able to hold an account and save their hard-earned money in a trusted deposit scheme. These individuals now hold a savings account and deposit the money rather than just holding money in cash form. In many ways, we can say that the Post Office Savings Account is similar to a savings bank account. It offers a fixed rate of interest, full and partial deposit withdrawal, internet and mobile banking, ATM card, etc. 

Post Office Savings Account Interest Rates 2024

  1. The interest rate on post office savings account (POSA) is 4% p.a.. The interest will be allowed for a calendar month on the lowest balance at the credit of an account between the close of the 10th day and the end of the month. Such interest will be credited to the account at the end of each year.  
  2. The interest will be calculated on whole rupee values only. The interest amount will be rounded off to the nearest rupee. 
  3. If the balance is below five hundred rupees at any time between the tenth and the last day of the month then interest is available.
  4. If you close the account then the interest will be applicable for the month preceding the month in which the account is closed
  5. In the case of the death of an account holder, the interest will be paid only at the end of the month preceding the month in which the account is closed.

Compare: Highest Fixed Deposit Interest Rates

Post Office Savings Account Service Charges 2024

The following are the service charges applicable to a post office savings account scheme:

Issue of a duplicate cheque bookRs 50
Issue of a deposit receiptRs 20 per deposit receipt
Issue of an account statementRs 20 per account statement
Cancellation or change of nominationRs 50
Passbook issuance in lieu of missing or mutilated certificateRs 10 per registration
Issue of a cheque book in Savings bank accountUp to 10 leaves in a financial year- No feeMore than 10 leavers- Rs 2 per leaf
Transferring an account, and pledging of an accountRs 100
Cheque dishonor feeRs 100

Features of a Post Office Savings Account

  1. The option to convert a single account into a joint account or vice-versa is not available
  2. The nomination is mandatory at the time of opening the deposit account.
  3. You will receive a passbook. To know the account balance you can present the passbook at the post office.
  4. You can open the account using cash only. Transfer from any other account is not allowed
  5. Same as any savings bank interest, interest income from the PO savings account is tax-exempt up to Rs 10,000.
  6. You can easily transfer the account from one branch of the post office to another
  7. The account is easy to operate just like any other bank savings account.
  8. The account provides facilities like passbook, checkbook, easy deposit, and withdrawal, etc.

Eligibility for Post Office Savings Account

The following individuals are eligible to open a post office savings account:

  1. Single adult individual
  2. More than one adult individual can open a joint account
  3. A minor who is able the age of 10 years
  4. A single adult can open an account on behalf of a minor
  5. A single adult can open an account on behalf of a person of an unsound mind
  6. One individual can open only one single post office savings account
  7. A minor or a person of unsound mind can open a single account on their behalf
  8. In the case of the death of one of the joint account holders, the surviving account holder will continue the account. The sole surviving account holder will be treated as the sole account holder. In case the sole surviving account holder already holds a savings account then the joint account must be closed
  9. After attaining majority, the minor needs to apply for conversion in his/ her own name to the concerned Post Office. The minor must submit a fresh account opening form and KYC documents.
  10. You can close the account by submitting an application in Form-2 and surrendering the passbook

Benefits of Opening a Post Office Savings Account

The following are the benefits of opening a post office savings account:

  1. The nomination facility allows you to nominate your legal representative. In the case of your death, your legal heir will receive the deposit amount.
  2. The scheme offers transferability. If you shift from one location to another you can easily transfer your account from one branch of Po to another. 
  3. Even a minor can open the account in his/ her own name. Once the minor attains majority he/ she can transfer in his/ her own name.
  4. Interest amount up to Rs 10,000 is tax-exempt for taxpayers.
  5. Electronically facilities are also available like internet banking, online deposit, and withdrawal in CBS Post offices
  6. A single-holder account can be transferred to a joint account as well.
  7. You receive complete liquidity. There is no lock-in period for this deposit scheme. Unlike other post office savings schemes, PO savings account schemes do not require any minimum deposit period.

Deposit and Withdrawal from a PO Savings Account

  1. The minimum deposit amount is Rs 500 to open a Post Office savings account
  2. Any subsequent deposit to the account cannot be less than Rs 10.
  3. No limit on the maximum deposit amount.
  4. To withdraw an amount of more than Rs 50 must present the passbook as well as Form-2. The Form-2 must be filed and signed by the account holder only. Alternatively, you can also withdraw through a cheque or electronically via the internet or mobile banking. However, you need to maintain the minimum balance limit.
  5. The minimum deposit limit of Rs 500. Hence you withdraw which may have the effect of lowering of balance to Rs 500.
  6. In case of an account having a balance of less than Rs 500 immediately before the commencement of this Scheme, the account holder shall deposit the difference amount. The difference amount must be deposited within a period of one year from the date of commencement of this Scheme. This deposit must bring the balance in the account to a minimum of Rs 500. The accounts office shall be responsible for advising the account holder through appropriate mode to make the required deposits within the specified date.  
  7. If you fail to make such a deposit within the specified period then you need to pay an account maintenance fee. The PO office will deduct a fee of Rs 100 from the account on the last working day of each financial year. If after deduction the balance in the account becomes nil then the account will automatically be closed. The PO office will notify the account holder. This provision shall be applicable to all accounts including Silent Account.
  8. All deposits and withdrawals shall be made in rupees only.
  9. If there is no transaction i.e. a deposit or a withdrawal in an account for 3 consecutive years then the account will be treated as a salient account. A credit of yearly interest is not considered a transaction. 
  10. You cannot make a transaction to a salient account until you revive the account. You can revive the account by submitting an application and completing the due process of such an application.

How to Check Post Office Savings Account Balance?

You can check the Post Office Savings Account balance using any of the following options

  1. By presenting your passbook at the post office branch
  2. By logging into your account through the internet or mobile banking
  3. You can give a miss call. To check your balance give a missed call to 8424046556 and get a minimum statement, dial 8424026886
  4. Alternatively, you can send an SMS. Send a text message “BAL” with the last four digits of your account number to 32302. Each SMS will cost you Rs 1. 
  5. You must register your mobile number for IPPB’s missed call banking service. 
  6. You can give a missed call on 8424054994 to register for the service. Moreover, your mobile number must be linked to your savings/ current account

How to open a Post Office Savings Account?

The following is the process to open a post office savings account:

  1. Receive an account opening form online or offline
  2. Submit the form filled and signed along with the KYC documents
  3. Deposit the minimum account opening balance
  4. Your account will be opened.
  5. To use internet banking you must activate your account. Visit the website, click on ‘New user activation’, provide your customer ID. 

Documents Required To Open a PO savings account

You need to submit the following documents to open a new account and complete the KYC as well:

  1. Identity Proof- Aadhaar Card, PAN, Voter ID, passport, driving license. 
  2. Photo Identity Card issued by recognized University/ Education Board/ / College/ School, Identity card from Central/State Government or PSU.
  3. Address Proof- bank or post office passbook, passport, ration card, utility bills like electricity, telephone, etc.

Types of Form for Post Office Savings Account

Form-1Application for opening an account
Form-2Application for closure of the account

Frequently Asked Questions

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

The rate of interest for Joint Post Office Savings Accounts is 4% p.a.

How many accounts can be opened at one post office?

You can open only one single or joint account at one post office.

Can I transfer my savings account from one branch to another at the post office?

Yes, you can transfer your post office savings account from one branch of the post office to another by submitting an application.

Do post office savings accounts provide an ATM debit card facility?

Yes, post office savings accounts provide an ATM debit card facility. You can easily use it at any ATM center.

Is the rate of interest on PO savings account different from a joint account?

No, the rate of interest on a PO savings account is similar for both single and joint accounts. The rate of interest is 4% p.a..

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