Post Office Savings Account 2024

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.

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rating
6.7 Crore
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3.4 Crore
Policies Sold

What is a Post Office Savings Account?

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.

Basic Details of Post Office Savings Account

Scheme Name Post Office Savings Account
Rate of Interest 4% per annum
Minimum Investment Amount
  • Rs. 500 
  • Rs. 10 for subsequent deposits
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

Tax Benefits of Post Office Savings Account

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.

Comparison Between
Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund
Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund
Guaranteed Return Plans
Returns Before Tax
7.5% (TAX-FREE)
Returns After Tax
7.5%
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
awards
Still Better than FD’s and Debt Mutual Fund
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
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*For annual premium upto ₹5 Lacs

How to Open a Post Office Savings Account Online?

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.

Eligibility to Open Post Office Savings Account

  • 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.

Documents Required for Post Office Savings 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

Aadhaar and PAN Mandatory for Post Office Savings Account

  1. New Accounts:

    • 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.

  2. Existing Accounts:

    • 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.

  3. Consequence of Non-Submission:

    • Accounts will become inoperational if Aadhaar and/or PAN are not submitted within the specified period.

Post Office Savings Account Interest Rates:

  • 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.

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:

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

Post Office Savings Account Withdrawals & Deposits

  • 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.

Other Post Office Savings Schemes in 2024

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

Post Office Internet Banking Savings Account Login

  • 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.

Post Office Savings Account Balance Check

There are a few ways you can check your Post Office Savings Account balance:

  1. Missed Call

    Purpose Number
    Register for Missed Call Service 8424054994
    Balance Enquiry 8424046556
    Mini Statement 8424026886
  2. Post Office SMS Banking 

    Purpose Code Send To
    SMS Banking Registration REGISTER 7738062873
    For Balance Enquiry BAL
    For Mini Statement MINI
  3. Phone Banking:

    Dial the toll-free number 155299 from your registered mobile number. Choose your preferred language and follow the IVRS instructions to check your balance.

  4. Internet Banking:

    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.

Benefits of Post Office Savings Account

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.

What Does a Silent Account Mean?

  • 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.

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 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

Sum It Up

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.

FAQs

  • What is the interest rate for post office savings accounts in 2024?

    The interest rate for a Post Office Savings Account in 2024 is 4% per annum. It is important to note that this interest is taxable.
  • Who can open a post office savings account?

    Anyone can open a post office savings account, including individuals, minors (above 10 years old with a guardian), and even joint accounts.
  • What is the minimum amount required to open a post office savings account?

    The minimum deposit to open a post office savings account is typically ₹500.
  • How often is interest credited to my post office savings account?

    Interest is credited to your account at the end of each financial year (March 31st).
  • What documents do I need to open a post office savings account?

    You will typically need identity proof (e.g., Aadhaar card, PAN card) and address proof (e.g., utility bill) to open a post office savings account. Requirements may vary slightly, so check with your local branch for specifics.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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