What is a Post Office Savings Account?
Often shortened to Post Office Savings Account or Post Office Savings Bank, this is a basic deposit account offered at post offices across the country. You put money in, take it out when you need it, and the balance earns interest that the government fixes and reviews every three months.
The account can be held by one person or jointly by up to three. There is no lock-in and no fixed tenure, so your money stays fully liquid. Because the Department of Posts runs it, your deposit is backed by a sovereign guarantee rather than the limited insurance cover that applies to bank deposits. That single point is why a lot of safety-first savers still keep a post office account going alongside their regular bank.
Post Office Savings Account Interest Rate 2026
For the financial year 2026-27, 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, so it can change in a future review.
Here is the part most people miss. Interest is calculated on the lowest balance in your account between the 10th and the last day of each month, and it is credited to the account once a year. Keep your balance up through that window and you earn the full month's interest. Let it dip, and the interest for that month drops with it. If you tend to move money in and out, timing your withdrawals after the 10th can make a small but real difference over a year.
Features and Benefits of Post Office Savings Account
- Government backing: The deposit is guaranteed by the Government of India, not by a bank's deposit insurance.
- Low entry point: ₹500 opens the account, and there is no cap on how much you can hold.
- Full liquidity: no lock-in, no maturity date. Withdraw whenever you like.
- Everyday banking tools: passbook, cheque book, ATM/debit card, internet banking and UPI once the account is linked to India Post Payments Bank (IPPB).
- Nationwide reach: India Post runs one of the largest branch networks in the world, with a strong presence in rural areas where private banks are thin on the ground.
- Nomination: You can name a nominee so the balance is settled smoothly if something happens to the account holder.
Who Can Open a Post Office Savings Account
The eligibility rules are simple:
- Resident Indian individuals can open a single or joint account.
- A joint account can be held by up to three adults.
- A minor aged 10 or above can open and operate the account on their own.
- For a child under 10, a parent or guardian opens and runs the account, and it is handed over to the child once they turn 18.
- A post office savings scheme can also be opened for a person of unsound mind through a guardian.
Documents Required for Post Office Savings Account
Keep these ready before you visit the post office or start online:
- Identity proof: Aadhaar card, and PAN card
- Address proof: Aadhaar, passport, voter ID or a utility bill
- Two passport-size photographs
- PAN or Form 60, where PAN is not available
- Date of birth proof in the case of a minor account
How to Open a Post Office Savings Account
You can go about the post office account opening 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 the 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.
A quick note here. 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.
Aadhaar and PAN Are Now Mandatory
This is the rule most older articles still get wrong, so it is worth spelling out. Following a Ministry of Finance notification, Aadhaar and PAN are now required for every new post office scheme, not just the savings account.
- To open any new post office account, you must give your Aadhaar number and PAN. If you have applied for Aadhaar but don't have the number yet, you can submit proof of enrolment and provide the Aadhaar within six months of opening.
- If you hold an existing account and haven't submitted Aadhaar, you were required to do so within six months, with effect from 1 April 2023.
- PAN has to be submitted within two months from whichever of these happens first: the balance crosses ₹50,000, total credits in a financial year cross ₹1 lakh, or total withdrawals and transfers in a month cross ₹10,000.
Miss these windows, and the account is frozen and treated as inoperative until you submit the missing Aadhaar or PAN. It is a small piece of paperwork, but skipping it locks up your money, so get it done at the time of opening.
Minimum Balance and Charges
The minimum balance is ₹500. If your balance slips below that at the end of a financial year, the post office deducts a ₹100 maintenance fee. If the balance then reads zero after that deduction, the account is closed automatically. Any deposit after opening has to be at least ₹10, and there is no upper limit on the amount you can keep.
One more thing to watch: if there is no deposit or withdrawal for three straight years, the account is marked silent, and you have to get it reactivated at the branch before using it again.
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 banking: register your linked number by giving a missed call to 8424054994. After that, dial 7799022509 for the balance and 7799022708 for a mini statement. The call cuts off on its own and you get the details by SMS.
- SMS banking: send REGISTER to 7738062873 from your linked number, then send BAL for the balance or MINI for a mini statement to the same number.
- IPPB mobile app: log in and the balance shows on the home screen.
- Internet banking: through the IPPB or India Post e-banking portal.
- Passbook: update it at any post office branch, which also gives you a full transaction record.
All of these need the mobile number registered against your account, so link your number first if you haven't.
Tax on the Interest for Post Office Savings Account
Interest earned on a Post Office Savings Account qualifies for a deduction of up to ₹10,000 in a financial year under Section 80TTA of the Income Tax Act, for those filing under the old tax regime. Interest above that is added to your income and taxed at your slab rate. Since the account pays 4%, most small savers stay well within the exempt limit, but it is worth keeping in mind if you hold a large balance.
Should You Open a Post Office Savings Account?
A Post Office Savings Account is not the place to chase returns. At 4%, it barely keeps pace with a decent bank savings account, and it trails post office schemes like the MIS, SCSS or SSY by a wide margin. What it does offer is a sovereign guarantee on every rupee, easy access, and a branch within reach almost anywhere in the country. If you want a safe, no-frills account for day-to-day savings, or a backup to your bank account, it does the job. For money you are actually trying to grow, the higher-yielding post office schemes are the better home.
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.
-
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.
Generate wealths 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
