
Post Office Savings Account
The Post Office Savings Account scheme was initiated with a focus on the rural population who have minimal access to banks and banking facilities. As post offices are established extensively at every remote location in India, these offices are used as banking portals. With more than 25,000 branches in cities and towns, post offices are found within a radius of every 5-10 Kms. Through the post office savings account scheme, post offices function as banks benefiting the rural population, while the urban population can also avail this facility.India Post Savings Account
The India Post savings account scheme offers a wide range of features that can be availed by the people who are looking for a better and hassle-free banking experience. Some of the features are listed below:Easy Account Opening
The Post Office Savings Bank Account (POSB) can be opened with a minimum balance of Rs.50 only. This account is transparent and issue-free as there are no penalties. One can always open an account with the minimum balance and also use it as a savings account for personal use. Minimum balance for maintaining a cheque account is Rs. 500 and cheque facility can be taken in an existing account also. This is lower than the Public Sector and Private Sector Banks which mandates a minimum balance of Rs.1000 to Rs.5000 or more.ATM Facilities
Post office savings account holders can avail the ATM facility that comes as an add-on to the account. The India Post ATM’s have been opened nationwide for facilitating the account holders.SMS Alerts
Account holder can avail SMS alerts for his/her bank account for easy banking. The details on transaction and banking updates are sent through SMS to the registered mobile number.Minimal Charges
There are no charges for the transactions made through or from the POSB account. Deposits can be done through any branches in India without any charges.Interest Rates
The rate of interest provided on post office savings account is 4% and subject to change from time to time. In case of savings for a girl child, parents can open a Sukanya Samriddhi Yojana account in a Post Office, which would provide about 8.5% interest per annum.Opening a Post Office Savings Account
Post office savings account can be opened by adults, minors over the age of ten years, a guardian on behalf of an adult or a group of adult. Post offfice savings account cannot be opened by companies or business for transacting business. Following are the steps to open an account under the Post Office Savings Account:- Procure a form from the post office or online.
- Submit the duly filled and signed form along with the required KYC documents and a photograph.
- Pay the amount you would like to deposit subject to a minimum of Rs.20.
- Your deposit will be opened for you.
- For senior citizens, there are separate forms available.
- ID Proofs like Aadhar Car, Voter ID, Driving License, Ration Card etc.
- Address proofs like Electricity Bill, Ration Card, Bank Passbook, Telephone bill and Ration Card.
- Passport Sized Photographs.
Related Guides
Popular Post

Starting a small business can be a transformative venture, offering the exciting opportunity...

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Goods & Services Tax Certificate is issued to people who are registered under GST...

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

A trademark search is simply checking if another person or organization does not already own the...

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Internal audit applicability is a critical concept for companies in India, impacting various...

In the business world, two main types of companies exist: private company and public company...

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...