The Post Office Premium Savings Account, or Premium Khata, is offered by India Post Payments Bank (IPPB). It is a zero-balance account with benefits like free doorstep banking. The minimum deposit to open the account is ₹200. You can earn 2% interest per year on balances up to ₹1 lakh and 2.25% per year on balances between ₹1 lakh and ₹2 lakh.
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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))
The Post Office Premium Savings Account is a subscription-based Post Office Savings Account offered under the SBPRM scheme of IPPB. Post Office Interest Rate is calculated daily and paid every quarter. There is no requirement to maintain a minimum balance. You can operate the account freely without penalty. If your balance goes above ₹2 lakh, the extra amount can automatically move into a linked Post Office Savings Account (POSA), helping you manage higher savings better.
Key Features of the Post Office Premium Savings Account
The Post Office Premium Savings Account is a distinguished Post Office Savings Scheme. Here are its main features:
Free Utility Payments: Bill and mobile recharges are free through the Post Office Premium Savings Account.
Virtual Debit Card: With this facility, you get a debit card issued at ₹25. Reissuance and annual maintenance are free of charge.
Nomination Facility: You can add a nominee at the time of account opening or any time later for easy fund transfer in case of need.
Account Closure Charges: If you close the account after three months of opening or upgrading, a fee of ₹50 plus GST will apply.
SMS Alerts: SMS alerts are charged at ₹0.25 plus GST per message, with a maximum of ₹100 per quarter.
QR Card and Standing Instructions: You can set up standing instructions and receive a QR card at no extra cost.
Cashback Benefits:
₹10 cashback on your first Virtual Debit Card payment within 90 days of account opening
₹5 cashback every month on electricity bill payments
₹35 cashback once a year when you generate a Digital Life Certificate
How to Open a Post Office Premium Savings Account?
You can open a Post Office Premium Savings Account (SBPRM Account) by visiting your nearest IPPB access point, Post Office branch, or requesting doorstep banking. Here's how:
Visit the Post Office or Request Doorstep Service: Go to any IPPB-enabled Post Office branch or use the IPPB mobile app to schedule a doorstep banking visit.
Fill the Account Opening Form: Ask for the SBPRM account opening form and select the Premium Savings Account option.
Submit KYC Documents: Provide Aadhaar and PAN cards (or Form 60 if PAN is unavailable). Carry a passport-sized photograph. Additional proof may be required if your current address differs from your Aadhaar.
Pay the Subscription Fee and Initial Deposit: Pay a one-time account opening charge of ₹149 + GST and make a minimum deposit of ₹200 to activate your account.
Eligibility to Open Post Office Premium Savings Account
Opening a Post Office Premium Savings Account is simple and accessible to most individuals who meet the basic requirements. Below are the key eligibility criteria:
Age Requirement: Any Indian resident aged 10 years or above is eligible to open this account.
Residency Status: Only resident Indian citizens can open this account. Non-Resident Indians (NRIs) are not eligible.
KYC Compliance: Submission of valid KYC documents is mandatory. This includes Aadhaar, PAN card or Form 60, and biometric or e‑KYC verification.
Deposit Requirement: An initial deposit of ₹200 is required at the time of account opening.
Account Holding Rule: Only one SBPRM (Premium Savings Account) is allowed per individual. Joint holding is not permitted.
Key Takeaways
The Post Office Premium Savings Account is ideal for individuals looking for a simple and rewarding banking experience. It provides regular interest, premium services, doorstep cash deposits, and withdrawals without paying extra charges. You can manage higher funds more efficiently by linking them with your Post Office Savings Account. Customers can also get higher Post Office FD rates by booking time deposits.
FAQs
How much money is required to open a post office savings account?
To open a Post Office Savings Account, you need a minimum deposit of ₹500, which must also be maintained as the minimum balance. There is no maximum limit on the amount you can hold in the account. The minimum deposit for a Post Office Premium Savings Account is ₹200.
SBPRM stands for Savings Bank Premium, a premium savings account by IPPB.
Can I link my POSA with an IPPB account for online access?
Yes, linking POSA with your IPPB account allows you to use mobile banking, doorstep services, QR payments, and bill payments through the IPPB app.
What differentiates a POSA from a regular post office savings account?
POSA offers priority service, a personalised passbook, SMS alerts, and IPPB integration. A regular savings account provides basic services without these added features or fees.
˜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))
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