To open a post office saving account, Procedures to open Saving Account online and offline.
Post Office Online Saving Account
In this post, we are going to discuss the Post office Savings Account (SB). The post office savings account is similar to the bank savings account. The Post office Savings Account is provided with Pass Book, ATM card, and Cheque Book. This account can be created at any of the Post offices in India. The amount can be credited or debited in any Indian Post Office.
The major benefit of the Post office Savings Account is the Post office won’t debit any extra hidden charges for account maintenance or SMS.
The drawback of Post office Savings Account is net banking, mobile banking, fund transfer, AEPS (Aadhaar Enabled Payment System), and Loan facilities are not available.
To enable net banking and mobile banking an IPPB (India Post Payment Bank) account should be created along with a Post office Savings Account. The Post office Savings Account is linked with IPPB, through which mobile banking can be used and funds can be transferred from the post office account to other bank accounts.
Eligibility criteria to open a Post office Savings Account
- An individual above 18 years of age and he or she should be an Indian.
- More than 1 individual can open a Joint account.
- In the case of minors below 10 years, a guardian can open an account.
- In the case of a mentally challenged person, a guardian can open an account.
- In the case of a minor above 10 years account, can be opened with his own name.
Documents needed to open an account
- Passport size photocopies – 2.
- Aadhaar Card Xerox.
- Pan Card Xerox.
- Guardian Aadhar Card Xerox (in case of a minor).
- Guardian Photocopy (in case of a minor).
For transactions below Rs. 50,000 Pan Card is not necessary for KYC. For depositing or withdrawing Rs. 50,000 or above Pan Card is compulsory. Nominees can also be mentioned for your account.
How to open a Post Office Savings Account
To open a Post office Savings Account (SB), the steps are given below:
Step 1: Visit the nearest post office and get an application form.
Step 2: Fill out the form with appropriate details.
Step 3: Submit the relevant documents and photos.
Step 4: Pay the deposit amount which cannot be lower than Rs. 500.
|Interest||4.0% per annum.|
|Minimum Deposit Amount||Rs. 500|
|Maximum Deposit Amount||No Limit|
|Minimum Withdrawal Amount||Rs. 50|
|No Withdrawal is Permitted if the account balance is||Below Rs. 500|
Post Office Savings account online opening
The form can also be downloaded by using the following steps.
Step 1: Visit the India post’s official website indiapost.gov.in
Step 2: In the Menu select “Banking & Remittance“.
Step 3: Then select “Post Office Savings Scheme“.
Step 4: Click on “Post Office Savings Account (SB)“.
Step 5: At the bottom, click on “Forms available” and download “Application Form For Opening of Account“.
Deposits and withdrawals from the Post office savings account
At the end of the financial year if an account’s balance is lower than Rs. 500, Account Maintenance Charge Rs. 100 will be deducted.
How Interest is calculated in Post Office Savings Account
- Interest will be calculated on the basis of the minimum balance available in the account between the 10th of the month and the end of the month.
- If the account balance between the 10th and last day of the month is below Rs. 500 then no Interest will be allowed.
- Based on the interest rate prescribed by the Ministry of Finance, interest will be credited at the end of the financial year.
- If the account is closed, then the interest is paid up to the previous month.
- According to u/s 80TTA of the Income Tax Act, from all Savings Bank Accounts, interest up to Rs. 10,000 earned in a Financial Year is exempted from taxable income.
Facilities Available on Post Office Savings Account
Apart from depositing and withdrawing amounts through challans, there are additional facilities available in the post office savings account, they are as follows:
- Cheque book.
- ATM Card.
- Banking / mobile banking.
- Aadhaar Seeding.
- Atal Pension Yojana (APY).
- Pradhan Mantri Suraksha Bima Yojana (PMSBY).
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).