If you are looking for a very safe investment option, with good liquidity and guaranteed returns, you should open a Post Office Savings Account. It is also ideal for people living in rural or semi-rural areas with limited access to banks.
Who can open a Post Office Savings Account?
The following people can open a savings account at the post office:
- Minors of age 10 or above
- A guardian on behalf of a minor
- A person of unsound mind
- You can either open a single account, or two or three adults can open a joint account.
- You can only open one single account and one joint account at one post office.
Post Office Savings Account opening documents required are as follows:
- ID Proof
Any of the following – Election Card, Ration Card, Passport, Driving License, Aadhaar Card or letter issued by Unique Identification Authority of India (UIDAI), photo ID card issued by recognized University/Education Board/College/School/Central or State Government/PSU
- Address Proof
Any of the following – Electricity Bill, Telephone Bill (not more than three months old), Passport, Ration Card, Aadhaar Card or letter issued by UIDAI, Bank or Post Office Passbook/Statement
- Two recent passport size photographs. In case of a joint account, you need to give photos of all the account holders.
How to open a Post Office Savings Account?
Opening a savings account in the post office is very easy. Just follow the steps given below:
- Go to your nearest or preferred post office. A savings account can be opened in any post office. (You can later transfer the account from one post office to another if required.)
- Get the account opening form from the post office. You can also download the form online from here.
- Separate forms are available for senior citizens.
- Submit the duly filled form and required documents (as mentioned above) at the post office.
- Pay the initial amount that you want to deposit in cash.
- The minimum amount of initial deposit required is Rs.20. The maximum is Rs.1,00,000 for single accounts, and Rs.2,00,000 for joint accounts.
- That’s all! Your account will be opened.
- You can later make deposits and withdrawals in cash, or through any electronic mode in CBS Post offices.
- At least one transaction in three years is required to keep the account active.
Can you open a Post Office Savings Account online?
As of now, you cannot open it online. You can only download the account opening form online.
Is there a cheque book facility available?
- Yes, cheque book facility is available.
- You can apply for it while opening the account by making an initial deposit of minimum Rs.500.
- For accounts with cheque book facility, the minimum balance to be maintained in the account is Rs.500. (For accounts without cheque book facility, the minimum balance requirement is Rs.50.)
- You can also apply for a chequebook after opening the account, provided the balance in your account is Rs.500 or more.)
Do you get an ATM/Debit Card?
Yes. You can get an ATM/Debit Card if you have the prescribed minimum balance on the day of issue of the card of CBS post offices.
Is nomination facility available?
Yes. It is available at the time of opening the account, and also after opening the account.
Interest Rate and Maturity
The current rate of interest offered on Post Office Savings Accounts is 4% per annum. The rate of interest is updated by the government regularly. Interest earned is tax-free up to Rs.10,000 per year.
There is no lock-in or maturity period. You can close the account whenever you want.
Hopefully, this article has given you the required information to open a savings account in the post office.
Many other investment schemes are also available at the post office. To read about the Monthly Income Scheme, please click here.
November 3, 2017 7:28 pm
I am have all document but I am not have any Minor .
May 16, 2020 8:10 am
post office accont
February 5, 2019 11:50 am
Is Aadhar Card compulsory for opening any of Post Account ?