Post Office Savings Account: Minimum Balance, Interest Rate and Other Details

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Highlights

  • Post Office Savings Account Customers Will Now Enjoy Digital Banking Service
  • Savings Bank Accounts at Post Offices Will be Linked to IPPB Accounts

Post Office Savings Account Holders Will Now Enjoy Full Digital Banking Service

Here comes the good news for all the 34 crore Post Office Savings Account Holders as very soon they can avail the full-fledged digital banking service. Yes, the Government has decided to link the post office savings account with India Post Payments Bank (IPPB), which will be operational in May, 2018. An official source said ‘’The Finance Ministry has approved linking of savings bank accounts at post offices with IPPB accounts. This will enable post office account holders to transfer money from their accounts to any bank accounts”.

If we talk more about the savings accounts in the post office, out of the 34 crore accounts, 17 crore are listed as savings accounts and the rest fall under monthly income schemes, recurring deposits, etc. Well, if experts are to be believed, this initiative of India Post will establish country’s largest banking network by linking all its 1.55 lakh branches with IPPB. Moreover, the India Post has started its core banking service but currently, it only offers the fund transfer service within the post office savings bank accounts. But now, with this move, the account holders can instantly transfer funds to any bank accounts without any hassle. However, this digital banking service is optional for the post office savings account holders, which means if the account holders choose this service, only their accounts will be linked to the IPPB account.

According to an official statement issued earlier, India Post willing to start the operations of its 650 IPPB branches from this month onwards and the same will be linked to the smaller post offices in the districts. Not only this, the Government is also working on the second phase of planning, which will be operational in the month of September this year. Under the second phase of planning, the post office account holders will have an option to pay for the post office products such as depositing money for Sukanya Samridhi Yojana, Recurring Deposits, Speed Post and many more from their IPPB accounts. The India Post Payment Bank is governed by the Reserve Bank of India and the banking service of post offices come under the Finance Ministry.

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Just like any other banking customer, the IPPB customers can also enjoy plenty of benefits by using NEFT, RTGS and other fund transfer services. Not only this, IPPB is also going to launch its app and will start registering various merchants such as grocery stores, tickets etc who will accept from the customers. So, which means, soon after the linking of post office savings accounts with India post payments bank, the customers cannot only do the third party transactions but can also make payments to various merchants with the help of using an app of IPPB.

Everything You Need to Know about Post Office Savings Account

India Post, apart from delivering the mails, is also best known for offering a wide range of financial and retail services under the Department of Posts (DoP). Yes, these include Small Savings Schemes such as Public Provident Fund (PPF) and National Savings Scheme Certificate (NSC) to name a few. Moreover, India Post under plenty of savings schemes also offer Post Office Savings Account-with or without cheque book facility.

If we look at the figures, currently 37 crore of the pollution is having the savings bank account in the post office, which means savings accounts are among the most popular of its products. Post Office Savings Account can easily be opened by cash only. But what is the Interest Rate offered? What is the minimum balance to be maintained in the account? What are the other services and salient features offered by this type of savings account? Curious to know the answers of all the questions above? All you need to do is just read the blog post below.

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Post Office Savings Account Interest Rate

India Post currently offers an interest rate of 4% per annum on an individual account or joint accounts, held in the post office savings account. Not only this, the interest earned is tax-free up to ₹10,000 in a financial year.

Post Office Savings Account Minimum Balance

The minimum balance required in a non-cheque facility account is ₹50. Whereas, for savings accounts with a cheque-book facility, the minimum balance to be maintained is ₹500.

Post Office Savings Account Minimum Opening Balance

The minimum amount required to open a post office savings account is ₹20. The account can be opened by cash only.

How to Open the Post Office Savings Account?

Opening a post office savings account is really simple.

  • Visit 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)
  • Ask for savings account opening form or you can download the same online.
  • Submit the duly filled and signed application form along with the required KYC documents and 2 recent photographs
  • Pay the minimum account amount of ₹20 to open your account. The maximum amount of initial deposit is ₹1,00,000(single account) and ₹2,00,000 (joint account)
  • That’s All! Your account will be opened

Note:

  • 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 Post Office Saving Account be Opened Online?

A post office savings account cannot be opened online as of now. You can only download the account opening form online

Who Can Open a Post Office Savings Account?

  • The person should be an adult
  • An individual with an Indian Nationality
  • Minors with a minimum age of 10
  • A Guardian on Behalf of a Minor
  • 2 or 3 Individuals (Joint Account)
  • A person of unsound mind

Note:

  • 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.
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Documents Required to Open Post Office Savings Account

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 proofs and photos of all the account holders.

Salient Features of Post Office Savings Account

  • The account can be opened by cash only
  • Minimum balance to be maintained in a non-Cheque facility account is ₹50
  • Cheque facility available if an account is opened with ₹500 and for this purpose minimum balance of ₹500 in an account is to be maintained
  • Cheque facility can be taken in an existing account also
  • Interest earned is Tax-Free up to ₹10,000 per year from the financial year 2012-13
  • Nomination facility is available at the time of opening and also after the opening of an account
  • The account can be transferred from one post office to another
  • One account can be opened in one post office
  • An account can be opened in the name of the minor and a minor of 10 years and above age can open and operate the account
  • A joint account can be opened by two or three adults
  • At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active
  • A single account can be converted into Joint and Vice Versa
  • Minor after attaining majority has to apply for conversion of the account in his name
  • Deposits and withdrawals can be done through any electronic mode in CBS Post offices
  • ATM facility is available

Personal Loan Interest Rates April 2018
Bajaj Finserv 10.99% - 16.00%
Fullerton India 14.00% - 33.00%
HDFC Bank 10.99% - 20.99%
ICICI Bank 10.99% - 18.40%
IndusInd Bank 10.99% - 16.00%
Kotak Bank 10.99% - 20.99%
RBL 13.00% - 18.00%
Standard Chartered Bank 11.49% - 14.49%
Tata Capital 10.99% - 18.00%
Home Loan Interest Rates April 2018
State Bank of India/SBI 8.35% - 8.90%
HDFC 8.40% - 9.10%
Bank of Baroda 8.30% - 9.30%
LIC Housing 8.45% - 8.90%
PNB Housing Finance 8.40% - 8.99%
ICICI Bank 8.35% - 8.85%
Axis Bank 8.40% - 8.75%
Citibank 8.40% - 9.25%
Indiabulls Housing Finance Limited 8.45% - 9.75%
Kotak Bank 8.35% - 8.50%
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