The 2024 Post Office Savings Account offers a secure, government-backed savings option with easy access, competitive Post Office savings interest rates, and minimal fees. It remains a popular choice for conservative savers due to its reliability and the extensive postal network.
7.5%*
Guaranteed Plan
(by insurance companies)
(10 Years)
6.5%**
Fixed Deposits
(by SBI bank)
(5-10 Years)
7.1%***
Public Provident Fund
(other popular options)
(15 Years)
The Post Office Savings Account is an investment option provided by the India Post throughout the country. You get a Post Office savings account interest rate on the accumulated balance in the account.
This scheme is beneficial for any individual investor who is looking forward to earning interest by simply investing a portion of the financial assets. This Post Office Savings Account remains popular amongst the rural part of India. The reach of the India Post is greater compared to any bank. The underprivileged people have easy access to a savings account via the post offices.
Scheme Name | Post Office Savings Account |
Rate of Interest | 4% per annum |
Minimum Investment Amount |
|
Maximum Investment Amount | No limit |
Minimum Withdrawal Amount | Rs. 50 |
Eligibility | Individuals (Single and Joint) Minors |
Tax Exemption | Interest up to Rs. 10,000 is exempted |
Post office savings accounts in India do offer some tax benefits on the interest income you earn:
For all account holders: Deduct up to Rs. 10,000 on interest under Section 80 TTA.
For senior citizens (above 60 years old): Deduct up to Rs. 50,000 on interest under Section 80 TTB.
NOTE:
These deductions apply only to the interest income, not the principal amount you deposit.
If the interest amount in your post office savings account exceeds Rs. 40,000 in a financial year, the bank will deduct tax at source (TDS) on the exceeding amount.
You can open the Post Office Savings Account by following the steps mentioned below:
Step 1: You can get the form online as well as by visiting the nearby post office.
Note: Separate forms are available for senior citizens.
Step 2: Once the application form is generated, fill in all the required details.
Step 3: Submit the form with all the required documents and a passport-size photograph.
Step 4: Pay the initial minimum deposit amount, that is, Rs. 500 in general.
Step 5: After the completion of the above steps, the Post Office Savings Account Online will be opened in 2-3 business days.
A single adult.
Two adults jointly (Joint A or Joint B).
A guardian on behalf of a minor.
A guardian on behalf of a person of unsound mind.
A minor above 10 years in their own name.
Rules:
An individual can open only one single account.
Only one account can be opened for a minor, a person above 10 years of age (in their own name), or a person of unsound mind.
If a joint account holder dies, the surviving holder becomes the sole holder. If the surviving holder already has a single account, the joint account must be closed.
Conversion between single and joint accounts is not allowed.
Nomination is mandatory when opening an account.
Post Office Savings Account Opening Application Form
KYC Form
PAN Card
Aadhaar Card/Passport/Driving License/Voter’s Card/MNREGA job card/letter issued by National Population Register
Required: Aadhaar number and PAN.
If Aadhaar is not available: Provide proof of Aadhaar's application or enrollment ID when opening the account. Submit your Aadhaar number within 6 months.
Submit Aadhaar: Within 6 months from April 1, 2023.
Submit PAN: Within 2 months if any of the following occur:
Balance exceeds Rs. 50,000.
Total credits in a financial year exceed Rs. 1 lakh.
Total withdrawals and transfers in a month exceed Rs. 10,000.
Accounts will become inoperational if Aadhaar and/or PAN are not submitted within the specified period.
Interest is credited annually at the end of each financial year.
Interest is based on the lowest balance between the 10th and month-end, rounded to the nearest rupee.
No interest if the balance is below Rs. 500 between the 10th and month-end.
Interest is credited annually at the Ministry of Finance's rate.
On account closure, interest is paid up to the previous month.
If there are no transactions for 3 consecutive financial years, the account becomes dormant.
If an individual wish to open a Post Office Savings Account, then the following charges will be applicable and should be taken into consideration:
Services Offered | Charges Applied |
Provision of new or duplicate cheque book | Rs. 50 |
Provision of receipt for deposits made | Rs. 20 for every receipt |
Provision of account statement | Rs. 20 for every statement |
Changes in nomination | Rs. 50 |
Provision of new passbook | Rs. 10 for every registration |
Provision of transferring an account | Rs. 100 |
Cheque dis-honour | Rs. 100 |
All deposits and withdrawals must be made in whole rupees only.
The minimum withdrawal amount is Rs. 50.
Withdrawals that reduce the balance below Rs. 500 are not permitted.
If the account balance is not raised to Rs. 500 by the end of the financial year, a Rs. 50 Account Maintenance Fee will be deducted.
If the balance becomes zero, the account will be automatically closed.
Scheme | Interest Rate (Updated) | Minimum Investment | Maximum Investment | Eligibility | Tax Implications |
Post Office Savings Account | 4% p.a. | Rs. 500 | No limit | Individuals Minors |
Interest up to Rs. 10,000 exempt from tax |
Kisan Vikas Patra Account | 7.5% per annum | Rs. 1,000 | No limit | Individual | No tax deduction at source (TDS) on interest |
National Savings Certificates (NSC) | 7.7% per annum | Rs. 1000 | No Limit | Individual | Tax deduction under Section 80C |
National Savings Monthly Income Account | 7.4% per annum payable monthly | Rs. 1,000 | Individuals: Rs. 9 lakhs; Joint Account: Rs. 15 lakhs |
Individual | Interest up to Rs. 10,000 exempt from tax |
National Savings Recurring Deposit Account | 6.70% p.a. | Rs. 100 per month | No limit | Individuals including Minors | Interest up to Rs. 10,000 exempt from tax |
National Savings Time Deposit Account | 6.9% – 7.5% p.a. | Rs. 1000 | No limit | Individual | Interest up to Rs. 10,000 exempt from tax |
Public Provident Fund Account (PPF) | 7.1% per annum (Annually Compounded) | Rs. 500 annually | Rs. 1,50,000 annually | Individual | Tax deduction under Section 80C |
Senior Citizen Savings Scheme (SCSS) Account | 8.2% per annum (Annually Compounded) | Rs. 1,000 | Rs. 15 lakhs | People above 60 and 50 years of age who have taken VRS or superannuation | Tax deduction under Section 80C |
Sukanya Samriddhi Account (SSA) | 8.2% per annum (Annually Compounded) | Rs. 250 annually | Rs. 1,50,000 annually | Girl Child with age up to 10 years | Tax deduction under Section 80C |
Visit the India Post eBanking website.
Enter your User ID and the captcha code, then click on "Log In".
Once logged in, you can access your savings account.
From there, you can perform various banking activities, including checking your balance and more.
There are a few ways you can check your Post Office Savings Account balance:
Purpose | Number |
Register for Missed Call Service | 8424054994 |
Balance Enquiry | 8424046556 |
Mini Statement | 8424026886 |
Purpose | Code | Send To |
SMS Banking Registration | REGISTER | 7738062873 |
For Balance Enquiry | BAL | |
For Mini Statement | MINI |
Dial the toll-free number 155299 from your registered mobile number. Choose your preferred language and follow the IVRS instructions to check your balance.
If you have internet banking activated for your Post Office Savings Account, you can log in to the Department of Post's website and check your balance online. However, internet banking is currently only available for accounts at CBS-enabled branch offices.
The following are the key benefits of opening an account online:
Hassle-free Account Opening: Opening a Post Office Savings Account is quick and effortless.
Tax Benefits on Interest: Enjoy tax benefits on the interest earned. The interest remains tax-exempted according to prevailing laws.
No Lock-in Period: Unlike FD schemes, this account has no lock-in or maturity period.
Flexibility in Account Type: Convert your single account to a joint one, and vice versa, as per your convenience.
Easy Branch Transfer: Transfer your account seamlessly from one post office branch to another without any hassle.
Dormant Account Status: If there is no deposit or withdrawal in a Post Office Savings Account for three consecutive financial years, the account becomes dormant or silent.
Account Revival Process: To revive a dormant account, simply submit an application along with KYC documents and the passbook at the respective post office.
The following are facilities on the Post Office Savings Account that can be availed upon submitting the respective form at your post office:
Mobile banking/ e-banking
ATM Card
Aadhar Seeding
Cheque Book
Pradhan Mantri Jeevan Jyoti Bima Yojana
Pradhan Mantri Suraksha Bima Yojana
Atal Pension Yojana
The post office savings account offers a reliable and accessible option for you to save money with minimal hassle. With its widespread availability, attractive interest rates, and government backing, it remains a popular choice for those seeking a secure place to grow their savings.