In lieu of demographic, the postal services in India have the highest scope. Their significant influence in even the most isolated rural areas, through their savings schemes, leads to the financial empowerment of each family. A Post Office Savings Account is a deposit scheme run by the Government of India at all post offices. It generates returns at a defined interest rate that is determined by the Reserve Bank of India on your investment. The fixed interest rate presently stands at 4 percent. For people who want to receive assured returns on their investment with minimum risk, the Post Office Savings Account and other small savings schemes of the post office are widely considered.
Key takeaways of post office saving account
- The account can be opened by depositing cash only and on behalf of a minor and the account can be opened and managed by minors over 10 years of age.
- With a nomination facility, the account can also be opened individually or jointly by 2 or 3 adults.
- The minimum balance required without the cheque facility to open an account is Rs. 50. This amount is Rs. 500 for accounts with a cheque facility.
- To keep the account active, a minimum of one transaction in 3 fiscal years is necessary.
- Tax benefits on interest earned by the Post Office Savings Account can also be claimed by individuals. Interest received up to Rs. 10,000 in a given financial year is exempted from tax.
- Unlike Fixed Deposit Schemes, no lock-in or maturity period exists.
- Led to the massive reach of post offices in India, individuals from rural areas can also reap the advantages of banking services.
- It is also possible to transfer an account from one post office branch to another across the country.
Post Office Savings Account Interest Rate
Interest rates are calculated by the Reserve Bank of India for Post Office Savings Accounts. It has fluctuated around 3-4 percent over the years. An individual currently receives interest on their account balance at the rate of 4 percent. The interest is determined on a monthly basis and paid into the account per year.
Eligibility required to open a post office savings account
In order to open an account, one must meet the below-given eligibility criteria:
- You can open a Post Office Savings Account for any Indian citizen above the age of 10 years.
- A Guardian can open an account on behalf of a minor, and when the minor meets the age of 18 years, he or she can manage the account.
- Only one single and one joint account at a specific post office can be maintained by a person.
Post Office Savings Account Form
One can get the application form for a Post Office Savings account by visiting the nearest post offices or accessing the portal of India Post. The form must be properly filled and submitted at the post office by all applicants, since the applicant is eligible to successfully open a post office account with this form and to reap advantage from other banking services.
How to open a post office savings account?
Opening a Post Office Savings Account is a pretty straightforward operation, follow the below-listed steps for the same:
- After filling the application form completely, visit your nearest post office branch and submit the duly filled form along with the necessary KYC documents and passport size photographs.
- To open an account without the cheque facility, pay the minimum deposit amount of Rs. 20 or a deposit amount of Rs. 500 to open an account with cheque facility.
- Once the above steps have been successfully completed, the savings account will open within 2 working days.
Post office savings account login
Indian Post has now provided the service to access its savings account online to its customers. To reap benefit from the service, new users must create a user ID for internet banking.
- Visit India Post eBanking website and sign in to your account by entering the 'User ID'
- Now you can access your savings account and conduct a range of banking services as well check your balance.
Steps to activate India post internet banking service
By following the below-mentioned steps, you can activate India post net banking service successfully:
- Visit India Post eBanking website and click on the 'New User Activation' option.
- Now enter the required credentials i.e. Customer ID and Account ID
- Once your activation process is completed, you will get a 'User ID' instantly.
Post office savings account balance check
You can conveniently check the balance of your post office savings account by:
Missed call service: For IPPB's missed call banking service, you need to register your mobile number. Give a missed call to 8424054994 from the mobile number linked to your savings/current account in order to register your number for this service.
Give a missed call on 8424046556 to know your account balance.
Give a missed call on 8424026886 to get a minimum statement.
Via SMS: To use this service, your mobile number must be linked with your savings account.
Type "BAL" with the last four digits of your account number and send it to 32302. (Charges applied: 1 SMS = Rs.1.00 only).
Post office savings account - withdrawal rules
Investors can withdraw funds from the Post Office Savings Account as per their requirements, much like a savings account in any scheduled bank. No lock-in or maturity period exists. That being said, with an account with a cheque facility, a depositor needs to ensure that a minimum balance of Rs. 50 is kept in an account without a cheque facility and Rs. 500 for an account with a cheque facility.
Post Office Savings Account App
By launching a mobile application in 2019, 'IPPB Mobile App', the Indian Posts Payments Bank has rendered it easy for depositors to access their post office savings accounts. This app is accessible on both the Android and IOS devices and can be downloaded to activate the post office's mobile banking services. Only those customers who have an account in the core banking allowed post office can use this application. The account must be successfully completed in full through KYC. The account must have authorized internet banking and mobile banking services. If not, to have them enabled, the customer is required to fill out a form and submit it to the post office.
How to access the app?
For an existing customer: An existing customer can use this mobile banking app to access his or her account online using his login credentials, once the mobile and Internet based services have been activated. The customer will be able to configure a four digit MPIN upon authorization to login to the application and manage accounts.
For a new customer: Using the app, a new customer can even open a post office savings bank account. You need to tap the tab 'Open your account now' and enter the PAN and mobile number. For authentication, an OTP will be sent to the registered mobile number. The customer will have to enter the Aadhaar number after verifying the OTP and acknowledge the Aadhaar authentication terms. To be able to access the account, he or she can then proceed on with the further on-screen instructions.
Available services: By using the app, one can monitor account balances, statements, apply for a cheque book, prevent payment on a cheque, transfer money inside the bank or to other accounts, reimburse utility bills and avail sweep-in sweep-out facilities.