How To Open Post Office Savings Account

Post Office Savings Account is one of the most popular savings account in India. Till today there are many villages or areas in India where there is not a single bank to open SB account. In such areas post office plays a crucial part as they have the highest reach / network in India. So, opening a Post Office Savings Account is a good idea in such places so that your idle money can earn some interest. In this article I will share various details about Post Office Savings Account, step by step account opening process, Post Office Savings Account interest rates and many more.

Eligibility Criteria & Interest Rate of Post Office Savings Account

Rate of interest 4% per annum
Minimum Amount for Opening INR 20/-
Interest earned is Tax Free up to INR 10,000/- per year from financial year 2012-13
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/-

Key Features of Post Office Savings Account

As the name said, it is a typical savings account in post office with comparatively less features than bank accounts.
One can open this account by depositing cash only. You should check the latest deposit rules as there is certain cash deposit restrictions applied after demonetization drive.

The minimum amount require to open savings account in post office is Rs 20 only.

Cheque facility can be taken in an existing account also.

You can provide nominee details at the time of opening the account or even after opening SB account in post office.

You can easily transfer your savings account to another post by writing a request letter.

You can open a single savings account in one post office in your area. Right now savings account opening process has been done online for all core banking branches. That means you can’t open multiple post office savings account in different branches. But make sure you clarify the same.

Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.

You can also open joint account in post office. You can even convert your single account into joint account by providing a letter & filling the respected joint account application form.

To keep the account active, you should do a transaction in your account once in 3 financial year.

If you have applied for account in the name of minor, you have to convert the account in his/her name when he/she will become major.

Deposits and withdrawals can be done through any electronic mode in CBS Post offices.

Inter Post office transactions can be done between CBS post offices.

ATM/Debit Cards can be issued to Savings Account holders( having prescribed minimum balance on the day of issue of card) of CBS Post offices.

Steps To open Savings account in Post Office

First of all you have to find out the nearest post office in your area. Now a days one can open ePost ofifce account in all core banking branches in your area. In all other branches you can open typical savings account in post office.

You can download the post office savings account application form online and then fill up the same.

Visit the link to download forms:

Provide the necessary document like address proof, identity proof, PAN card and also fill up the KYC form.

After that deposit the minimum Rs 20 and open your account.

On successful verification, you will be provided a passbook.

Should I Open Post Office Savings Account?

Well, the answer of this question is not same for everyone. For them who are living in villages and don’t have access to bank accounts with good interest rate or features, they can go for such accounts. Its always good to put your money in a savings account to get some interest. But if you have better alternative like highest interest rate on savings account, online banking facilities etc then there is no point to open SB account in post office. But if you have invested in NSC certificates or KVP them you might need an SB account to get the maturity value deposited. Just ask your nearest post office for various online facilities available, in case that is having a core banking service activated.


I am a passionate blogger and personal finance enthusiast. Mostly share about investment tips, insurance guide, banking how to guides and various personal finance hacks through my blog. Checkout my first YouTube Channel on Personal Finance Guide.

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