List of Topic Covered
What is Post Office Savings Account? Summary of POSA
- Post Office Savings Account is a normal deposit plan which gives you a fixed rate of interest. As Government schemes are always popular in India.
- People always look for Securing their money (safe option) rather than getting good return.
- Post office Saving Scheme is an amazing option through which they can safeguard their hard earned money and at the same time can get a good return on it.
- The minimum amount to open an account is rupees 500 with cheque book. Post office Saving Scheme can earn you 4% annual return on your savings. Account holder has to maintain a minimum balance of rupees 500.
- There is no upper limit to deposit an amount in post office Saving Scheme.
- Interest earned is tax free up to rupees 10000 per year under Tax Act of 80TTA of Income Tax Act 1961
| Account name | Post office savings account |
| Interest rate | 4 % |
| Type of account | Savings account |
| Start Year | 2019 |
Features in Post Office Savings Account
- Post office Saving Scheme protects your money and at the same time provides you guaranteed return on it.
- Any single adult to adults for 3 adults jointly can open post office savings account.
- Only one account can be opened by an individual on his or her name.
- You can avail cheque book, ATM card, e-banking and mobile banking services.
- Parents or Guardian can open an account on behalf of a minor .
- Minors above the age of 10 years or more can operate their accounts.
- To keep your post office savings account active you have to do transactions (Deposite Or withdraw) in your account once in every three years
- Interest earned is tax free up to rupees 10,000 per year under Tax Act of 80TTA of Income Tax Act 1961
- You can choose to close post office savings account anytime you want.
Benefits of Post Office Savings Account
- Wealth protection with benefit – post office savings account keep your money entirely safe and provides you a decent return on it.
- Check and ATM debit card – check facility is available in this account and with maintaining the minimum balance you also get the facility of using ATM/debit cards
- Account transfer portability – account holder Can transfer his or her account from one post office branch to another post office branch .
- Nominee update – at the time of opening an account or after opening an account you can choose your nomination details .
- Joint Account – Single Adult, two adult or 3 adult jointly can open an account. Account holders can anytime convert their single account to joint accounts and vice versa.
- Minor account – Minors above the age of 10 can operate their account but if the policyholder is below 10 years then parents or guardians on their behalf will operate the account .
- Tax Benefit : Interest earned up to 10,000 in a financial year across all savings account is exempted from taxable income under section 80TTA of Income Tax Act 1961
Eligibility Conditions and Other Restrictions in Post Office Savings Account
| Minimum Age to Open an Account | 10 Years |
| Maximum People in Join Account | 3 People |
| Minimum Deposit | Rs. 20 |
| Minimum Balance (Without Checkbook) | Rs. 50 |
| Minimum Balance or Deposit (With Checkbook) | Rs. 500 |
| Maximum Deposit | No Limit |
| Minimum Withdrawal | Rs. 50 |
Post Office Savings Accounts Interest Rates History
| Date (From) | To (Date) | Interest Rate |
| 01-04-1981 | 31-12-1998 | 5.50 |
| 01-01-1999 | 28-02-2001 | 4.50 |
| 01-03-2001 | 30-11-2011 | 3.50 % |
| 01-12-2011 | 30-09-2020 | 4.0% |
Post Office Savings Account Withdrawals
Account holder can withdraw the deposited amount at any time as per his needs. However he has to maintain the minimum balance of Rs. 50 (Normal Account) and Rs. 500 (Account with Checkbook).
Click here to Read about Post Office Monthly Income Scheme Account
How to Open Post Office Savings Account
- To open a savings account in the post office Saving Scheme you just have to follow some simple steps given below.
- Visit your nearest post office and collect the application form.
- You can also download the application form from the official website of India Post.
- Fill up the form with accurate information.
- Attach all the necessary documents with form which includes your passport size photograph as well.
- Then go to the post office and deposit the initial amount which is not lower than rupees 20.
- If you want a post office savings account without a cheque book then you have to maintain a minimum balance of 50 rupees.
- If you want a post office savings scheme with a cheque book then you will have to maintain a minimum balance of 500 rupees.
- And that’s all. your account will get opened immediately.
- Deposited amounts neither have a locking period nor they have any maturity period.
- This is the reason people love this account because you can withdraw money anytime you want.
Documents Required to Open Account in Post Office Savings Account
You will need to have below documents to open your post office savings account.
ID Proof
- Electoral card
- Aadhar card
- ration card
- Passport
- driving license
- Identity Card from University / Education board / College / School identity
- Identity Card from Central or State Government
- Identity Card from PSU
Address Proof
- Bank or post office passbook statement with current address
- Passport
- Ration card with current address
- Electricity bill
- Telephone bill not more than 3 months old
- Salary slip with current address
- Aadhar card
Two recent passport size photo. If your account is a joint account then photographs of all joint account holders is to be provided.
I hope this helps you to understand POSA really well. If you have any question about this account, please comment below and we will get back to you immediately.
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