Post Office Savings Account 2022

What is Post Office Savings Account?

The Post Office Savings Account is one deposit scheme that is provided by the India Post throughout the country. This savings account offers an interest rate on the 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.

Basic Details of Post Office Savings Account

How to Open Post Office Savings Account Online?

Anyone who wishes to open the Post Office Savings Account needs to follow the below steps:

• Step 1: An individual can get the form online as well as by visiting the nearby post office. For senior citizens, separate forms are available.

• Step 2: Once the application form is generated, fill in all the details required.

• 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. 20 in general.

• Step 5: In case the individual wishes to open the account without a cheque book then Rs. 50 deposit amount is required. 

Finally, after the completion of the above steps, the Post Office Savings Account Online will be opened in 2-3 business days.

Additional Charges Applicable On Post Office Savings Account

If an individual wish to open a Post Office Savings Account, then the following charges will be applicable and should be taken into consideration:

Eligibility to Open Post Office Savings Account

At the time of opening the Post Office Savings Account, the nomination is a mandate. The following can easily open the account:

• Any single adult and as a single account, only one account can be opened by the individual.

• Two adults that would be Joint A or Joint B. In case of demise of the joint holder, the surviving holder is going to be the holder solely and when the surviving holder has a single account, then the joint account needs to be closed.

• A minor who is 10 years of age and above. This account needs to be opened in the name of the minor. Once the minor attains the majority, then along with the KYC documents fresh account opening form of the Post Office Savings Account need to be submitted at the respective post office for the conversion in the name respectively.

• A guardian on behalf of the minor.

• A guardian on behalf of the person of an unsound mind. This account needs to be opened in the name of the unsound mind.

• It is to be noted that conversion of a single to a joint account and vice-versa is not permitted.

• Group Accounts, Official Capacity Accounts, and Security Deposit Accounts are not eligible for Post Office Savings Account.

Interest Rate for Post Office Savings Account:

Take a look below to understand the interest rate:

• The interest rate is 4% per annum on both individual and joint accounts.

• The interest is calculated upon the minimum balance between the tenth and end of the month. This is permitted in whole rupees only.

• No interest is permitted in a month when the balance between a tenth and the last day of a month is below Rs. 500.

• The interest will be credited to the account towards the financial year-end at the interest rate that is prescribed by the Ministry of Finance.

• During the closure of the account, interest will be paid to the month preceding in, which the account is closed.

• Under Section 80TTA of the IT Act, from all of the savings bank accounts, the interest up to Rs 10,000 earned in the Financial Year remains tax exempted.

Other Post Office Investment Options

Post Office Savings Account Withdrawals & Deposits

All the deposits or withdrawals for the Post Office Savings Account will be only for whole rupees. Take a look below, to understand the deposits and withdrawals:

Besides, no withdrawal will be allowed that affects reducing the minimum sum of Rs 500. At the end of the financial year, if the account balance is not raised to the sum of Rs 500 then Rs 100 is going to be deducted as the charge for the maintenance of the account. Also, when the balance in the account is nil thereafter the account will automatically stand closed.

Benefits of Post Office Savings Account

The following are the key benefits of opening an account online:

• The account opening process of the Post Office Savings Account is hassle-free and swift.

• The individuals can easily avail themselves of the tax benefits on the earned interest. The earned interest remains tax exempted; however, the tax benefits are as per the prevailing laws.

• The account does not offer any lock-in or a maturity period, unlike any FD scheme.

• The single account can be converted to a joint account and vice versa.

• The Post Office Savings Account remains transferable from one branch of the post office to another.

What Does a Silent Account Mean?

When in the Post Office Savings Account neither any deposit nor withdrawal takes place for continuous three financial years, the account will be treated dormant or silent.

The revival of such an account will be done by simply submitting an application with the KYC documents along with a passbook at the respective post office.

Additional Benefits Post Office Savings Account

The following are facilities on the Post Office Savings Account that can be availed upon submitting the respective form at the respective 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

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