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Post Office Savings Account

Post office savings account is the deposit scheme under the Government of India, where the individual is liable to get the interest paid in his account at a certain interest rate fixed by the RBI. So far, the Postal service has reached every corner of the country from rural areas to urban areas, and hence, a large number of people in India have access to the Post offices.

Benefits of Post Office Savings Accounts

Post office savings account has many benefits. Some of these are:

  • You can easily open an account in your nearest Post office or Sub Post office.
  • It requires only Rs. 20 for opening an account and to have a minimum deposit.
  • You can withdraw your saved money entirely or partly.
  • You can transfer your Post office account from any post office to another in any location.
  • You will be given a passbook along with ATM/Debit card to get access on your money anytime anywhere.

Cheque facility

To avail this facility from the post office, you need to fill a form by giving all the account details and submit in your home branch. After verification, you will get the cheque book on your address. The minimum balance of Rs. 500 should be maintained in your cheque book account.

Electronic facility

You can get the debit card or ATM card under this facility by the post office.

Joint holdings

Under this section, 2 or 3 adults can open a post office account jointly. They can open any number of accounts; but in one post office, they can opt for only one account. There is no maximum limit for the deposit under this scheme. The joint holders will get separate account passbooks and ATM cards to access their account.

Minor accounts

A minor who has attained the age of 10 years can open and operate the account in any post office. He or she can open a single account in the post office. While the opening of the account he/ she will be asked to give all the details and supporting documents. For minors under 10 years of age, his guardian can open and operate an account on behalf of him.

Nomination

While opening your account, you have to give the Nominee details and his address. You can go for 3 nominations. After your death, they will be liable to get your money.

ATM/Debit card

After the opening of your savings account in any post office, you will get a Debit or ATM card. Through this card, you can access your account at any post office ATM. Free access is limited to 5 times at the ATMs in a post office savings account. The daily cash withdrawal limit in the account is set up to Rs. 25,000 cash from the post office and Rs 10, 000 from any post office ATM.

Portability

You can transfer your Post office account from any post office to any other location. Under this facility, you can transfer any schemes you have done in a post office to any other location without hassle. You have to fill a transfer form, submit all the KYC details, and surrender the passbook in the respective branch. The authorized person will give you all the documents that you have to submit in another post office where you want to open/ continue the scheme.

Features of Post Office Savings Account

The main features of a post office savings account are:

  • You have to deposit a minimum Rs 20 while opening a savings account.
  • Any adult can open an account in post office single or jointly. Even a minor who has attained 10 years of age can also open and operate his account of his own.
  • Nominees can have access to the account after the account holder.
  • ATM/ Debit card is issued by your name to have access to your account.
  • A very good interest rate is offered which varies according to the schemes in the post office.

How to open Post office savings accounts

You can ask for the account opening form in the post office, fill in all the details, and submit all the KYC related documents along with 3 numbers of passport size photographs. Deposit a minimum of Rs. 20 or more. Then, submit all the documents in the post office. Your account will be opened in 2 working days.

Interest Rate of Post Office Savings Accounts

Interest rate varies according to the schemes.

InstrumentRate of interestCompounding frequency
Savings deposit4%Annually
1-year time deposit6.9%Quarterly
2-year time deposit7.0%Quarterly
3-year time deposit7.2%Quarterly
5-year time deposit7.8%Quarterly
5-year recurring deposit7.3%Quarterly
5-year senior citizen saving scheme8.7%Quarterly
5 year MIS7.7%Monthly
5 year NSC8.0%Annually
PPF8.0%Annually
Kisan Vakas Patra(112 months)7.7%Annually
Sukanya Samridhi Yojana8.5%Annually

Documents required to Invest in Post Office Savings Accounts

You need to give the relevant documents in support of Identification and address proofs. ID proofs like Voter card, Aadhaar card, Driving license, Ration card. Address proofs like Electricity bill, Ration card, bank passbook, and telephone bill are accepted. You have to submit your passport sized photograph along with these two.

FAQs on Post Office Savings Account

Can I use my post office account card at any ATM?

Yes, certainly you can use your post office account card in the post office ATM machines only, but not in any other ATMs.Yes, certainly you can use your post office account card in the post office ATM machines only, but not in any other ATMs.

Can we transfer money to post office account online?

No, you cannot. You can only deposit in the form of cash or cheque only.

How can I open PPF account in the post office?

You can collect the PPF opening application form from your nearest post office, fill all the details, then paste a photo in the respective place (in the form). Then, make a minimum initial deposit of Rs. 500 or more. Give all the KYC supporting documents. Submit the form to the authorized person. After all the verification, you will be assigned a passbook of your PPF account.

How can I open RD account in the post office?

It is very simple. You can initiate an RD by a minimum Rs. 10 deposit or deposits in multiples of Rs. 5. Every month you have to pay the same amount.

How do I deposit money into the post office?

You can fill the Paying-in-slip in the post office, then deposit money in your post office account.

How do I open a post office account?

You can ask for the account opening form in the post office, fill all the details, and submit all the KYC related documents along with 3 passport size photographs. Deposit a minimum Rs. 20 or more. Then, submit all the documents in the post office. Your account will be opened in 2 working days.

How do I open a post office savings account online?

No, you cannot open a post office savings account online. You have to visit the branch only.

How do I open a post office savings account?

You can ask for the account opening form in the post office, fill all the details, and submit all the KYC related documents along with 3 numbers of passport size photographs. Deposit a minimum Rs. 20 or more. Then, submit all the documents in the post office. Your account will be opened in 2 working days.

Is RD in post office taxable?

No, RD in the post office is not taxable. It’s TDS free.

What documents do you need to open a post office account?

ID proofs like Voter card, Aadhaar card, Driving license, Ration card. Address proofs like Electricity bill, Ration card, bank passbook, and telephone bill. You have to submit your passport sized photograph along with these two.

What is NSC in the post office?

It is a post office savings scheme.

What is the post office monthly income scheme?

POMIS is a monthly income scheme in India post, it offers an interest of 8.5% per annum on monthly basis.

What is the post office savings scheme?

Under these savings scheme in the Post office, you can deposit money and avail interest on it.

What is a post office savings account?

This is a type of deposit scheme under post office where you are liable to get the interest on your deposit account.

What is the post office Time deposit?

It is a type of fixed deposit, where you can save a fixed amount of money for certain months/years and get interest on it by the post office.

What is RD in the post office?

Recurring deposit is a saving scheme on monthly basis, where any adult person can deposit money for 5 years and avail interest on it.

What is RD interest rate in the post office?

The RD interest rate in the post office is 6.90%.

What is recurring deposit account?

Recurring deposit is a saving scheme on monthly basis, where any adult person can deposit money for 5 years and avail interest on it.

What is the senior citizen saving scheme?

This is an investment scheme for the senior citizens of 60 years and above, where they can invest their money and earn interest on it. The interest rate is 8.7% per annum.

What is the interest rate of the post office?

Interest rate varies from one savings scheme to another.

What is postal banking?

Postal banking is the exercise of financial services via post office.

Which bank gives maximum interest on a savings account?

Private sector banks like Yes Bank, Kotak Mahindra Bank, Ratnakar Bank, Laxmi Vilas bank are the banks who offer nearly about 7% on a savings account.

Which is the best post office scheme?

Best Post office schemes are like RD, MIS, SCSS, PPF and Sukanya Samridhi Yojana.

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