The Post Office Savings Account (POSA) is a government-backed savings scheme that offers a safe place to deposit money while earning 4% annual interest. It functions like a regular bank account with facilities like a passbook, ATM card, and nomination.
Read more
loading...
loading...
loading...
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))
A Post Office Savings Account (POSA) is one of the most popular Post Office Savings Schemes offered by India Post under the Department of Posts. Deposits can be made in multiples of ₹10. Withdrawals are permitted provided the minimum fund balance of ₹500 is maintained.
Here are the savings account options offered by the Post Office:
Post office premium aarogya savings account
Post office premium savings account
Post office regular savings account
Post office digismart savings account
Post office basic savings account
Key Benefits of Post Office Savings Account
Opening a Post Office Savings Account comes with several advantages. Some of these include:
Government-backed security: Deposits are fully protected by the Government of India.
Nationwide reach: With more than ₹1.5 lakh post offices, even rural residents can open and operate accounts easily.
Nomination & joint holding options: These are useful for family planning and inheritance security.
ATM and cheque facilities: These are available at CBS-enabled post offices, adding banking convenience.
Tax savings: Interest from a Post Office Savings Account (POSA) is exempt up to ₹3,500 for a single account and ₹7,000 for a joint account. Additionally, a deduction of up to ₹10,000 per year on all savings accounts (including POSA) is available under Section 80TTA of the Income Tax Act.
How to Open a Post Office Savings Account?
Indian post payment bank account opening is simple and can be done in two ways: offline by visiting your nearest post office or online via India Post Payments Bank (IPPB) services.
Offline Method
You can open India Post Payment Bank account by visiting your nearest branch as follows:
Collect the Form: Visit your nearest post office branch and collect the Account Opening Form.
Fill in Details: Complete the form with personal information like your name, address, type of account (single/joint), and nominee details.
Attach Documents: Submit proof of identity (Aadhaar/PAN), address proof, passport-size photographs, and PAN or Form 60.
Make the Initial Deposit: Deposit ₹500 or more as the opening balance to activate the account.
Receive Passbook: The post office will issue a passbook as confirmation, and the account becomes operational immediately.
Online Method
You can also open a post office savings account digitally using the IPPB Mobile Banking app or the India Post website. Here is the step-wise procedure for the same:
Visit the Official Portal: Go to the India Post website and select the “Open Savings Account” option.
Fill in Application: Enter Aadhaar, PAN, contact details, and choose account preferences online.
Complete e-KYC: Use Aadhaar-based biometric or OTP verification for instant KYC approval.
Deposit the Opening Balance: Transfer ₹500 digitally to meet the minimum deposit requirement.
Account Activation: Once processed, you’ll receive account details digitally, and services like internet banking and mobile banking can be activated.
Eligibility to Open a Post Office Savings Account
Anyone who meets the following eligibility requirements set by India Post can open a Post Office Savings Account:
Residents of India: Any resident adult can open a single or joint account.
Minors aged 10 years and above: Children who are 10 or older can manage their own accounts.
For children below 10 years: Parents or guardians can open and operate the account on their behalf.
For persons of unsound mind: A legal guardian can open and manage the account for them.
Account limit per person: Only one single and one joint account is allowed per person in each post office.
Key Takeaways
Post Office Savings Account is one of India's safest and easiest ways to save money. It is simple to use, backed by the government, and available even in remote areas. The Post Office Savings Account interest rates are set at 4% per annum with tax-free interest up to ₹10,000, making it a reliable choice for everyday savings.
FAQs
What is the minimum balance required for a Post Office Savings Account?
You must maintain a minimum balance of ₹500 in the Post Office Savings Account.
Is there a maximum deposit limit in a Post Office Savings Account?
No, there is no upper limit on the amount you can deposit, whether it is a single or joint account.
What happens if the account balance falls below ₹500?
If the balance is not restored to ₹500 by the end of the financial year, a ₹50 maintenance fee is charged. If the balance reaches zero, the account will be closed automatically.
What is a Post Office Premium Savings Account?
The Post Office Premium Savings Account is a subscription-based savings account offered by India Post Payments Bank (IPPB). It provides premium benefits like doorstep banking, higher daily cash limits, and cashback rewards for a nominal annual fee. Customers can also benefit from IPPB FD rates and other options.
What is a Post Office Premium Arogya Savings Account?
The Post Office Premium Arogya Savings Account combines banking with wellness benefits. It offers features like unlimited telehealth consultations, discounts on medicines and lab tests, and a virtual debit card, among other benefits.
˜Top 5 plans based on annualized premium, for bookings made through https://www.policybazaar.com in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India 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 01-08-2025
^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))
Compare & Choose 30+ Plans and 150+ Fund options
