Post Office Savings Account is similar to a savings account in a bank. It is specifically designed to keep your liquid cash in a safe place while earning some interest on it. You can liquidate your money anytime (fully or partially) as per your need. The savings account is a good option for people living in rural and semi-rural areas where the reach of banks is somehow limited.
Many tax-free post office deposits are available, that you can choose to suit your need. And for all of them, you need to have a savings account there to operate your accounts smoothly. Also, it will give you a decent interest rate of 4% which is similar to a bank savings account.
In this article, I will discuss everything about Post Office Savings Account like:
- Post Office Account Interest Rate
- Where Can You Open an Account
- How to Open FD in Post Office
- Important Features
- Online Payment Rules
- Minimum and Maximum Deposit Limit
Post Office Savings Account Interest Rate 2021
Your savings account in the post office will fetch you an interest rate of 4.0% per annum.
The interest rates are fixed periodically. Therefore, it is advised that you check the current interest rate before opening an account.
Where Can You Open an Account?
You can open the account in any of your nearest/ preferred post office.
Documents Required for Post Office Savings Account
The needed documents for opening an account are:
- An account opening form from your nearest post office
- Two passport size photographs
- Address and identity proof such as the Aadhaar card, passport, driving license, voter ID card, ration card, PAN card, or declaration in Form 60 or 61 as per the Income Tax Act, 1961
How to Open an Account in Post Office?
First of all, collect all the documents mentioned above.
Provide the nominee details and fill-up the form carefully. Also, carry the original identity proof along with you for verification purposes. Finally, get the signature of one witness and complete the formalities.
Post Office Savings Account Features
- You need to open an account by cash only.
- You can opt for a checkbook facility at the time of opening the account or later on.
- Nomination facility is available while opening and also after opening of the account.
- You can transfer the account from one post office to another.
- At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.
- Only one account can be opened in one post office.
- An account can be opened in the name of a minor. Also, a minor of 10 years and above age can open and operate the account.
- After attaining a majority he/ she has to apply for conversion of the account in his/ her name.
- A single account can be converted into a Joint and Vice Versa.
- A joint account can be opened by two or three adults.
- Deposits and withdrawals can be done through any electronic mode in CBS Post offices.
- You can get the ATM/Debit Card provided, you have the minimum balance kept on the day of issue of the card.
Post Office Savings Account Tax Benefit
From the financial year 2012-13, interest earned is tax-free (up to Rs 10,000/- per year).
Minimum and Maximum Deposit in Post Office Savings Deposit
The minimum amount for opening an account is Rs. 20. The maximum limit is Rs. one lakh for a single account holder and Rs. two lakhs for joint account holders.
Post Office Savings Account Form
You can download post office account opening form from here.
Post Office Savings Account Online Payment Facility
This facility is currently available for Post Office RD through Electronic Clearing Service (ECS). Also, if you have an agent, he or she can use the post office agent portal and do the online payment for you. Information on Post office Savings Account online payment is not yet clear. However, you can ask your post office branch for exact details on this. Furthermore, you may also ask your agent for the availability of an online payment mode.
FAQs on Post Office SA
Can I open post office savings account online?
No, this facility is not yet available. However, after opening the account you can opt for the ebanking facility of India Post.
What are the post office savings account withdrawal rules?
You can withdraw the amount anytime while keeping a minimum balance of Rs. 50 in simple account and Rs. 500 for cheque facility accounts.
Is Check Facility available?
Yes, you can either open a simple savings account with no cheque book facility or one with this facility. Check out the below rules regarding this facility.
|Cheque facility available if an account is opened with||INR 500/-|
|For Cheque facility minimum balance in an account is to be maintained||INR 500/-|
|Minimum balance to be maintained in a non-cheque facility account||INR 50/-|
What is post office silent account?
If you do not use your account for a continuous period of three years, it will be considered a silent account. This account can be reactivated by making any transaction. A service charge of Rs. 20 per year will be charged on the last day of each year until the account is reactivated.
Hope you will find the article useful. Please feel free to share your queries and experiences, if any. Also, don’t forget to share this article with your friends who might want to open a Post Office Savings Account in near future.