Opening a post office account is easier than before, with digital services making savings more convenient. The India Post Payments Bank (IPPB) redefined the process online and manages your money through IPPB mobile banking.
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under
10(10D))
Post offices offer a mix of savings and financial products for individuals and businesses. Below are the main types of accounts you can choose from.
Post Office Savings Account (POSA)
A Post Office Savings Account works like a regular bank savings account. You can deposit and withdraw money with ease. It comes with a passbook and a chequebook for tracking transactions. Backed by the Government of India, saving is a safe way. The minimum deposit is ₹500, and there is no maximum limit.
Post Office Current Account
The Post Office Current Account is meant for businesses, traders, and institutions that need frequent transactions. It has no limit on deposits or withdrawals and does not earn interest. The account can be opened with zero balance; the maximum end-of-day balance allowed is ₹2,00,000.
India Post Payments Bank (IPPB) Account
The IPPB Account offers simple digital banking through the post office network. You can start opening an IPPB account online using the IPPB mobile app. It lets you send and receive money through UPI, NEFT, and IMPS. You can also link your POSA for easy fund transfers.
How to Open a Post Office Account Online?
You can now open an India Post Payment Bank account online from your phone. Below are the simple steps to follow.
Download the IPPB Mobile App: Get the India Post Payments Bank app from the Google Play Store or Apple App Store.
Register with Your Mobile Number: Enter your Aadhaar-linked mobile number to start the registration.
Provide Aadhaar and PAN Details: Complete digital KYC using Aadhaar OTP. PAN may be required for higher transaction limits.
Select the Account You Want: Within the app, choose whether to open an IPPB account or begin the process for a Post Office Savings Account (POSA) or Current Account.
Create Your Account: Your India Post Payments Bank account will be created digitally in minutes.
Additional Verification (If Needed): For some services or to fully activate POSA or current accounts, you may need to visit the post office once for final KYC.
Activate Digital Services: Use the IPPB app to enable UPI, QR payments, fund transfers, and doorstep banking.
Note: Opening of current accounts has been restricted since December 1, 2021, and will recommence once notified by the postal department.
Post Office Account TDS Implication
Interest earned on a Post Office Savings Account (POSA) is tax-free up to ₹3,500 for a single account and ₹7,000 for a joint account under Section 10(15)(i) of the Income Tax Act. However, if the total interest from your account, including all Post Office schemes, exceeds ₹50,000 for regular individuals or ₹1,00,000 for senior citizens in a financial year, Tax Deducted at Source (TDS) may apply. Additionally, under Section 80TTA, you can claim a deduction of up to ₹10,000 on the total interest earned from all savings accounts, including POSA, and no Tax Deducted at Source (TDS) will be deducted on this amount.
Key Takeaways
Post office accounts combine traditional services with digital convenience through IPPB mobile banking. You can open an IPPB account online and manage it through mobile banking for transfers and payments. In some cases, additional verification may require an offline visit, but most steps can be started and completed digitally, making the process much faster.
FAQs
Can I open a post office account online?
Yes, you can open an IPPB account online through IPPB mobile banking. Most steps are completed digitally, but some may still need an offline visit for final verification.
How do I start the IPPB account opening online?
You can download the IPPB mobile app, register with your Aadhaar-linked number, complete eKYC, and create your account digitally in minutes.
Is KYC needed to open a post office account online?
Basic KYC is done digitally through Aadhaar OTP, but some services may still need a one-time visit for full verification.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-10-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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