The government has changed the rules of the Post Office Savings Account Scheme to enable some citizens to open zero balance simple savings accounts at the post office. Currently, post office savings accounts have a minimum balance requirement that must be met on a regular basis. The government provides sovereign guarantees on its deposits, which means that if the post office fails to refund account holders' money, the government will cover the investors' losses.
The withdrawal limit per person has been increased to Rs 20,000 from Rs 5,000, according to last month announcement. The increased withdrawal cap is expected to help Post Office Savings Schemes compete with banks and, in the long run, raise post office deposits.
Who is eligible for Zero Balance Post Office Savings Account?
Post office zero balance account can be opened by a person, according to a Ministry of Finance notification dated April 9, 2021;
(a) who is a registered adult member of any government welfare scheme
(b) by the guardian of a minor whose name is registered for any government benefit.
These individuals will open a zero balance savings account as their primary savings account. The number of accounts that can be opened, however, is limited to one. This account can accept money from government welfare deposits as well as every other form of deposit. You can open a zero-balance account with the post office if you receive a government benefit such as a pension, scholarship, or LPG subsidy and do not want to hold the minimum balance in your savings account.
How to open Post Office Savings Accounts Offline?
Step 1: Visit your nearest post office branch.
Step 2: Fill the form and submit
Carry necessary KYC documents and passport size photographs.
Step 3: Pay required amount in cash
The savings account will be opened2 -3 working days.
How to open Post Office Savings Accounts online?
Step 1: Visit the official website of India Post
Step 2: Select section 'Savings Account'
Step 3: Click on Apply Now
Step 4: enter the required/mandated details
Step 5: Click on 'Submit' and verify all the entered details with your KYC documents.
After the post office has checked all of your KYC documents, you will receive a welcome kit that includes a chequebook, ATM card, banking, and mobile banking credentials, among other things.
As of now it pays 4% interest each year and is based on the minimum balance maintained between the 10th and the end of the month.
Under the Jan-Dhan Yojana scheme/Basic Savings Bank Deposit Account, the Reserve Bank of India (RBI) has permitted banks to open zero balance accounts (BSBDA).