A Post Office Savings Account is among the most popular and convenient savings accounts in India. The balance that can be retained can range from Rs. 500 to Rs. One account may only be opened by the individual. An unlimited amount may be deposited into a post office savings account.
In many aspects, the Post Office Savings Account is similar to a conventional savings account. It is thought of as a very safe place to deposit money and offers the capacity to quickly and completely liquidate funds if required. Because they often offer a guaranteed return on investment, these accounts are ideal for senior citizens and anyone wishing to generate a constant income without taking on any risk.
A Post Office Savings Account can only be opened by adult Indian citizens. A minor must be 10 years old or older to start a Post Office Savings Account. A combined post office savings account must be opened by two or three people.
Steps to Open an Account at the Post Office for Savings
Step 1: Get the application form by going to the India Post website or your local post office.
Step 2: Complete the form with the necessary data.
Step 3: Provide the necessary paperwork and a passport-size photo.
Step 4: Make a deposit that must be at least Rs. 20.
Step 5: You must make a deposit of at least Rs. 50 to open a post office savings account without a checkbook.
Deposits from single account holders and joint account holders have been limited to Rs. 1 lakh and Rs. 2 lakh, respectively. One of the primary features of a Post Office savings account is that there is no lock-in or maturity period. Opening an account of this type is very easy because one can walk into any post office, complete the necessary paperwork with the clerk, and create an account straight immediately.
New Service Fees for Savings at the Post Office
You should be aware of the following service fees if you want to open a post office savings scheme:
- Duplicate checkbook: 50 rupees
- Deposit receipt issuance: Rs. 20 per receipt
- Account statement issuance: Rs. 20 per statement
- Nomination cancellation or change fee: Rs.
- In case of a lost or damaged certificate, a passbook will be issued for Rs. 10 per registration.
How to make a savings account checkbook: A financial year’s worth of up to 10 leaves is exempt from fees. After that, each check leaf will cost 2 rupees.
Regarding account transfers and account pledges: Rs.100
Fee for returned checks: Rs. 100
A Post Office Savings Account Must Meet Certain Requirements
A Post Office savings account may be opened by the following people:
minors whose minimum age is 10
A guardian acting on behalf of a minor A mentally unstable individual
You can open a joint account with two or three adults.
Group, institutional, and other types of accounts, including security deposit and official capacity accounts, are prohibited.
Interest Rate for Post Office Savings Accounts
The interest rate for Post Office savings accounts is normally set by the Central Government on a recurring basis and ranges between 3% and 4%. Interest is calculated on monthly amounts and is credited annually.
A fixed rate of interest is paid on Post Office Savings Accounts throughout the year, subject to occasionally changing as announced. The current interest rate of post office is as follows:
| Details Percentage (p.a) (p.a.) |
| Interest Rates 4% |
Account withdrawals at the post office
The amount put in a Post Office savings account may be withdrawn whenever it is necessary, depending on the circumstances of the depositor. However, in order to withdraw money from a cheque-enabled account, you must keep a minimum balance of Rs. 500 or Rs. 50 in a simple account.
- Post Office Savings Account Features
- An account with the Post Office primarily has these characteristics:
- You are free to terminate the account at any time.
- Users under the age of 10 are permitted to access their accounts.
- To keep the account active, at least one deposit or withdrawal must be made every three years.
- To open the account, only cash may be utilized.
- There is a nomination facility available both when opening the account and thereafter.
- Taxes on interest earned are waived up to Rs 10,000 each year. The amount of interest is subject to an income tax reduction under the terms of section 80L of the Income Tax Act.
- The account may be moved from one post office to another.
- Accounts can be changed from single to joint and vice versa.
- In CBS Post offices, deposits and withdrawals may be made using any electronic method.
- ATMs can be used to conduct transactions.
Benefits of Post Office Savings Accounts
Customers can use ATMs and check facilities to open these accounts. Below are a few alluring advantages of Post Office Savings Accounts:
Check facility: Check facilities are offered and can be requested for both new and existing accounts.
ATM/Debit cards can be issued by CBS Post Offices to account holders who have the required minimum balance on the day the debit card was issued.
Accounts for minors: Minors may open Post Office Savings Accounts. Accounts can be opened in the names of youngsters under the age of 10; however, the parent or legal guardian will have the authority to manage the account on their behalf. Children who are 10 years old and older can manage their accounts independently.
Portability: You can move your Post Office Savings Account to a branch of your choice if you move, are dissatisfied with the services provided by the local post office, or for any other reason. In a single post office, only one account may be opened.
Nomination: When an account is opened, the opportunity to nominate someone is made available. The beneficiary who will receive the account’s proceeds in the event of the account holder’s death can be chosen at any time.
Joint Holdings: Two or three persons may jointly hold an account under the joint account facility. A single account or a joint account can both be changed.
Tax Exemptions: Under the joint account facility, two or three persons may jointly hold an account. Both a single account and a joint account may be transformed.
Electronic Facilities: Customers can use any electronic method to withdraw money from or deposit money at CBS Post offices.
A long time of inactivity: To keep the account active, just perform one deposit or withdrawal every three fiscal years. The account will not be regarded as dormant until there have been no transactions for three fiscal years.
