Key Features: Post Office Savings Account
You need at least ₹500 to open the account and maintain that amount as a minimum balance.
- Interest Rate: Earn 4% per year, calculated monthly and paid once a year.
- Deposit Limits: Start with at least ₹500. There is no maximum limit on how much you can deposit.
- Minimum Balance: Keep at least ₹500 in your account (or ₹50 if you do not have a chequebook). A ₹50 fee applies if your balance drops below this limit during the financial year.
- Tax Benefit: Interest earned up to ₹10,000 each financial year is tax-free under Section 80TTA.
Documents Required For Post Office Savings Account
The following documents are for the opening of the Post Office Savings Account:
- Duly filled Account Opening Form and KYC Form
- PAN Card
- Aadhaar Card or original identity/address proof like Passport, Voter ID, or Driving License if Aadhaar is not available
Post Office Savings Account Interest Rate
The Post Office Savings Account Interest Rate stands at 4% per annum. That rate has held steady for a long stretch, though the Ministry of Finance revises small savings rates once a quarter:
| Feature |
Details |
| Interest Rate |
4% per year (calculated monthly, paid yearly) |
| Minimum Balance |
₹500 for accounts with a cheque facility
₹50 for accounts without a cheque facility |
| Taxation & Deduction |
Interest is taxable under your income tax slab (no TDS deducted by the post office).
You can claim up to ₹10,000 deduction per year under Section 80TTA.
|
| IPPB Account Difference |
India Post Payments Bank (IPPB) linked digital accounts earn 2% per year for balances up to ₹1 lakh. |
Benefits of Post Office Savings Account
Some of the benefits of a Post Office Savings Account:
- Low Entry Barrier: Open an account with just ₹500 and enjoy no maximum deposit ceiling.
- Full Liquidity: No lock-in period or maturity date; withdraw your money whenever needed.
- Digital & Everyday Banking: Access passbooks, cheque books, ATM cards, mobile banking, and UPI.
- Unrivalled Access: Available across 1.5+ lakh post offices, bringing banking to remote and rural areas.
- Decent Yield: Earns a stable 4.0% p.a. interest rate, calculated monthly and credited annually.
- Tax Relief: Interest is tax-free up to ₹3,500/year (individual) and ₹7,000/year (joint) under Section 10(15)(i).
- Flexible Ownership: Open individual, joint, or minor accounts, complete with an easy nomination facility.
- Investment Hub: Seamlessly links with government schemes (PPF, SCSS, RD, NSC) for direct payout credits.
- Sovereign Safety: Backed 100% by the Government of India with no cap on guaranteed funds.
Who Can Open a Post Office Savings Account
The eligibility rules are simple:
- Resident Indian adults (Single account or Joint account up to 3 adults).
- Joint Account Types:
- Joint A: All account holders must sign and operate the account together.
- Joint B: Any one account holder can operate the account independently.
- Minors:
- Aged 10 and above: Can open and manage an account independently in their own name.
- Under 10: Must be opened by a parent or legal guardian on behalf of the minor.
- Persons with mental illness: A legal guardian can open an account on their behalf (termed an Authorised Account).
Key Rules For Post Office Savings Account
- One Account Limit: You can open only one account per person.
- No Conversion: A single account cannot be converted into a joint account (and vice versa).
- In Case of Death: If a joint account holder passes away, the surviving holder becomes the sole owner. If the survivor already has a single account, the joint account must be closed.
- Minor to Adult Conversion: When a minor turns 18, they must submit a new Account Opening Form (AOF) and fresh KYC documents at their post office branch to update their account status.
How to Open a Post Office Savings Account
You can open a post office account in two ways: walk into a branch, or do it online through IPPB.
Offline, at the branch
- Visit your nearest post office and ask for the savings account opening form (Form-1).
- Fill in your details, the type of account and your nominee's information.
- Attach your KYC documents and photographs.
- Deposit at least ₹500 to fund the account.
- Once the staff verify your papers, they hand you the passbook, and the account is live.
Online, through IPPB
If you would rather open a post office bank account online, the India Post Payments Bank app is the route:
- Download the IPPB app from the Play Store or App Store.
- Choose to open a savings account and enter your Aadhaar and PAN.
- Complete e-KYC using Aadhaar OTP.
- Set your details and confirm.
Note: Opening an account through the IPPB app gives you an IPPB digital savings account, which you can then link to a full Post Office Savings Account. To open the traditional POSB account itself, a one-time visit to the branch for biometric verification is usually needed. So the honest answer to "how to open a post office savings account online" is that you can start it online and finish the KYC in person. Anyone who tells you it is 100% online is glossing over that step.
Steps to Open the Post Office Savings Account
- Visit your local post office and ask for the Savings Bank Account Opening Form.
- Fill out the form in block letters and attach your photographs.
- Attach self-attested copies of your Aadhaar and PAN card.
- Submit the paperwork along with a minimum cash deposit of ₹500 to open the account on the spot.
- Nominate a beneficiary, as nomination is mandatory at account opening.
Aadhaar and PAN Mandatory For Post Office Savings Account
Aadhaar is mandatory for opening an account with India Post Payments Bank (IPPB), while a PAN card can often be substituted with Form 60 depending on the type of account. Under Government of India rules, both Aadhaar and PAN details are mandatory for opening any post office savings scheme or account.
Aadhaar Requirements:
- Mandatory Submission: You must provide your Aadhaar details during account setup. If you have applied for Aadhaar but haven't received it yet, you can show your enrollment proof, but you must submit the verified details within six months.
- Mobile Linking: Your mobile number must be linked to your Aadhaar to complete authentication and receive OTPs.
PAN Card Requirements:
- PAN or Form 60: For standard accounts, you can submit a PAN card, or use Form 60 if you do not have a PAN.
- Strictly Mandatory for Digital Accounts: Opening app-based digital accounts directly requires an active PAN card alongside Aadhaar.
- Transaction Limits for PAN: If you do not give your PAN at account opening, you must provide it within two months if your account crosses any of these limits:
- Account balance reaches ₹50,000
- Total deposits in a financial year hit ₹1,00,000
- Total withdrawals or transfers in a single month hit ₹10,000
What Happens If You Miss the Deadline:
- If you fail to submit these required documents within the set timeframes, your account will be frozen, blocking all deposits and withdrawals until your details are updated.
Post Office Savings Account Minimum Balance and Charges
Aadhaar is mandatory for opening an account with India Post Payments Bank (IPPB), while a PAN card can often be substituted with Form 60 depending on the type of account.
Minimum Balance Rules
- Zero Minimum Balance: You do not need to keep any minimum monthly balance in IPPB savings accounts.
- No Penalty: There are no extra charges or fines for keeping a zero balance.
- Opening Deposit: You can open Regular and Basic accounts with zero money, while Premium and DigiSmart accounts require a starting deposit of ₹200.
Common Service Fees (Regular Account)
- SMS Messages: Costs ₹0.25 plus tax per SMS, capped at a maximum of ₹100 plus tax every 3 months.
- Bank Statements: Online monthly email statements are free if you register your email ID. A printed statement costs ₹50 plus tax for up to 1 year of history, and ₹100 plus tax for statements older than 1 year.
- QR Card: Provided for free when you get your first card.
- Adding Cash: Free to deposit up to ₹10,000 every month. Above this limit, a fee of 0.50% of the amount (minimum ₹25) applies per deposit.
- Withdrawing Cash: Free to withdraw up to ₹25,000 every month. Above this limit, a fee of 0.50% of the amount (minimum ₹25) applies per withdrawal.
- Online Debit Card: Costs ₹25 total for getting the card, replacing it, or paying the yearly card fee.
Note: Premium accounts charge an initial signup fee of ₹149 plus tax and a yearly fee of ₹99 plus tax, but they offer free cash deposits, free cash withdrawals, and free banking at your doorstep.
How to Check Your Post Office Savings Account Balance
Once your account is linked to IPPB, you have several ways to check the balance without going to the branch:
Missed Call and SMS:
- Missed Call: Call 9910223398 or 7799022509 from your registered mobile number. The call will disconnect automatically, and you will receive your account balance via SMS.
- SMS Service: Send BAL to 7738062873. If using the service for the first time, send REGISTER to the same number to set it up.
- Phone Call (IVRS): Call the toll-free number 155299 from your registered phone and follow the spoken voice prompts to hear your balance.
Mobile Apps and Online Banking:
- IPPB App: Download the official India Post Payments Bank app to log in and instantly view your account balance, transaction history, and bank statements.
- Internet Banking: Log in to the India Post e-Banking Portal using your User ID and password to check balances across your savings account, PPF, and other post office investment schemes.
- UPI Apps: Link your IPPB account to any UPI application (such as Google Pay, PhonePe, or Paytm), select the "Check Balance" option, and enter your 4-digit or 6-digit UPI PIN.
Offline Options
- ATM Withdrawal & Inquiry: Insert your Post Office RuPay ATM card at any compatible ATM, enter your PIN, and choose "Balance Inquiry" on the screen.
- Branch Visit: Visit your nearest post office branch with your physical passbook and a valid ID to have the counter operator update your transactions and print your current balance.
Taxation on Post Office Savings Account Interest
Interest earned on Post Office Savings Account (4% p.a.) is taxable under "Income from Other Sources" and must be declared in your ITR, but it offers notable tax relief: Section 10(15)(i) provides a standalone exemption of up to ₹3,500 (individual) or ₹7,000 (joint accounts), while Section 80TTA allows regular taxpayers to deduct up to ₹10,000 across all savings account interest, and resident senior citizens can claim up to ₹50,000 across all deposit interest under Section 80TTB.
Note: No TDS is deducted at source, these deductions apply under the old tax regime.
FAQs
-
Which savings account is best in the post office?
A ₹50,000 deposit in a 5-year Post Office Time Deposit (FD) at the current rate of 7.50% p.a. (compounded quarterly) grows to approximately ₹72,665 at maturity.
-
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.
-
What are the disadvantages of a Post Office Savings Account?
While POSA offers complete government safety, it has a lower interest rate of 4% p.a. compared to many bank
FD rates. It also lacks modern digital banking features, relies heavily on branch visits for updates, and offers no direct credit products like loans or credit cards.
-
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.
-
Is Aadhaar compulsory for a post office savings account?
Yes. Aadhaar and PAN are now mandatory for all new post office accounts, with fixed timelines to submit them if you don't have them at the time of opening.
-
How much interest does a post office savings account pay in 2026?
4% per annum for FY 2026-27. The rate is reviewed by the government every quarter.
-
How do I check my post office account balance?
Through the IPPB app, internet banking, a missed call to your registered number, SMS banking, or by updating your passbook at the branch.
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