Post Office Savings Account 2024

What is a Post Office Savings Account?

The Post Office Savings Account is an investment option provided by the India Post throughout the country. You get a Post Office savings account interest rate on the accumulated balance in the account.

This scheme is beneficial for any individual investor who is looking forward to earning interest by simply investing a portion of the financial assets. This Post Office Savings Account remains popular amongst the rural part of India. The reach of the India Post is greater compared to any bank. The underprivileged people have easy access to a savings account via the post offices.

Basic Details of Post Office Savings Account

Tax Benefits of Post Office Savings Account

Post office savings accounts in India do offer some tax benefits on the interest income you earn:

• For all account holders: Deduct up to Rs. 10,000 on interest under Section 80 TTA.

• For senior citizens (above 60 years old): Deduct up to Rs. 50,000 on interest under Section 80 TTB.

NOTE:

• These deductions apply only to the interest income, not the principal amount you deposit.

• If the interest amount in your post office savings account exceeds Rs. 40,000 in a financial year, the bank will deduct tax at source (TDS) on the exceeding amount.

Comparison Between

Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.5% ^(TAX-FREE)

Returns After Tax

7.5%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

Still Better than FD’s and Debt Mutual Fund

Fixed Deposits

Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

Yes

Life Cover

No

Tax on Profit

Taxable

Risk

Low Risk

Debt Mutual Fund

Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

No

Life Cover

No

Tax on Profit

Taxable

Risk

High Risk

VIEW PLANS

*For annual premium upto ₹5 Lacs

How to Open a Post Office Savings Account Online?

You can open the Post Office Savings Account by following the steps mentioned below:

• Step 1: You can get the form online as well as by visiting the nearby post office.

Note: Separate forms are available for senior citizens.

• Step 2: Once the application form is generated, fill in all the required details.

• Step 3: Submit the form with all the required documents and a passport-size photograph.

• Step 4: Pay the initial minimum deposit amount, that is, Rs. 500 in general. 

• Step 5: After the completion of the above steps, the Post Office Savings Account Online will be opened in 2-3 business days.

Eligibility to Open Post Office Savings Account

• A single adult.

• Two adults jointly (Joint A or Joint B).

• A guardian on behalf of a minor.

• A guardian on behalf of a person of unsound mind.

• A minor above 10 years in their own name.

Rules:

• An individual can open only one single account.

• Only one account can be opened for a minor, a person above 10 years of age (in their own name), or a person of unsound mind.

• If a joint account holder dies, the surviving holder becomes the sole holder. If the surviving holder already has a single account, the joint account must be closed.

• Conversion between single and joint accounts is not allowed.

• Nomination is mandatory when opening an account.

Documents Required for Post Office Savings Account

• Post Office Savings Account Opening Application Form

• KYC Form

• PAN Card

• Aadhaar Card/Passport/Driving License/Voter’s Card/MNREGA job card/letter issued by National Population Register

Aadhaar and PAN Mandatory for Post Office Savings Account

1. New Accounts:

   • Required: Aadhaar number and PAN.

   • If Aadhaar is not available: Provide proof of Aadhaar's application or enrollment ID when opening the account. Submit your Aadhaar number within 6 months.

2. Existing Accounts:

   • Submit Aadhaar: Within 6 months from April 1, 2023.

   • Submit PAN: Within 2 months if any of the following occur:

     • Balance exceeds Rs. 50,000.

     • Total credits in a financial year exceed Rs. 1 lakh.

     • Total withdrawals and transfers in a month exceed Rs. 10,000.

3. Consequence of Non-Submission:

   • Accounts will become inoperational if Aadhaar and/or PAN are not submitted within the specified period.

Post Office Savings Account Interest Rates:

• Interest is credited annually at the end of each financial year.

• Interest is based on the lowest balance between the 10th and month-end, rounded to the nearest rupee.

• No interest if the balance is below Rs. 500 between the 10th and month-end.

• Interest is credited annually at the Ministry of Finance's rate.

• On account closure, interest is paid up to the previous month.

• If there are no transactions for 3 consecutive financial years, the account becomes dormant.

Additional Charges Applicable On Post Office Savings Account

If an individual wish to open a Post Office Savings Account, then the following charges will be applicable and should be taken into consideration:

Post Office Savings Account Withdrawals & Deposits

• All deposits and withdrawals must be made in whole rupees only.

• The minimum withdrawal amount is Rs. 50.

• Withdrawals that reduce the balance below Rs. 500 are not permitted.

• If the account balance is not raised to Rs. 500 by the end of the financial year, a Rs. 50 Account Maintenance Fee will be deducted. 

• If the balance becomes zero, the account will be automatically closed.

Other Post Office Savings Schemes in 2024

Post Office Internet Banking Savings Account Login

• Visit the India Post eBanking website.

• Enter your User ID and the captcha code, then click on "Log In".

• Once logged in, you can access your savings account.

• From there, you can perform various banking activities, including checking your balance and more.

Post Office Savings Account Balance Check

There are a few ways you can check your Post Office Savings Account balance:

1. Missed Call

   Purpose	Number
   Register for Missed Call Service	8424054994
   Balance Enquiry	8424046556
   Mini Statement	8424026886

2. Post Office SMS Banking 

   Purpose	Code	Send To
   SMS Banking Registration	REGISTER	7738062873
   For Balance Enquiry	BAL
   For Mini Statement	MINI

3. Phone Banking:

   Dial the toll-free number 155299 from your registered mobile number. Choose your preferred language and follow the IVRS instructions to check your balance.

4. Internet Banking:

   If you have internet banking activated for your Post Office Savings Account, you can log in to the Department of Post's website and check your balance online. However, internet banking is currently only available for accounts at CBS-enabled branch offices.

Benefits of Post Office Savings Account

The following are the key benefits of opening an account online:

• Hassle-free Account Opening: Opening a Post Office Savings Account is quick and effortless.

• Tax Benefits on Interest: Enjoy tax benefits on the interest earned. The interest remains tax-exempted according to prevailing laws.

• No Lock-in Period: Unlike FD schemes, this account has no lock-in or maturity period.

• Flexibility in Account Type: Convert your single account to a joint one, and vice versa, as per your convenience.

• Easy Branch Transfer: Transfer your account seamlessly from one post office branch to another without any hassle.

What Does a Silent Account Mean?

• Dormant Account Status: If there is no deposit or withdrawal in a Post Office Savings Account for three consecutive financial years, the account becomes dormant or silent.

• Account Revival Process: To revive a dormant account, simply submit an application along with KYC documents and the passbook at the respective post office.

Additional Benefits Post Office Savings Account

The following are facilities on the Post Office Savings Account that can be availed upon submitting the respective form at your post office:

• Mobile banking/ e-banking

• ATM Card

• Aadhar Seeding

• Cheque Book

• Pradhan Mantri Jeevan Jyoti Bima Yojana

• Pradhan Mantri Suraksha Bima Yojana

• Atal Pension Yojana

Sum It Up

The post office savings account offers a reliable and accessible option for you to save money with minimal hassle. With its widespread availability, attractive interest rates, and government backing, it remains a popular choice for those seeking a secure place to grow their savings.