How to Open a Post Office Savings Account?

Post office savings accounts are deposit accounts offered by the government of India. These types of savings accounts operate just like any normal savings account. Post office savings bank accounts can be opened at a post office and are transferable from one post office to another.

These savings accounts offer similar interest yields and benefits as normal savings accounts, sometimes even more. This article will extensively discuss everything you need to know about post office bank accounts.

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What Is a Post Office Savings Bank Account?

A post office savings account is a type of financial instrument that post offices offer. The post office savings bank accounts offer fixed interest rates on the balance of bank accounts. These savings accounts are best suited for account holders who want to invest their money and earn a fixed-interest return.

How Does a Post Savings Bank Account Work?

Post office savings accounts are a popular choice of Indians for investments. You can open a savings account in the post office with a minimum of ₹20. They offer an interest rate of 4% per annum on savings accounts. These savings accounts also provide tax benefits per the Income Tax Act of 1961 provisions.

For example, if you earn less than ₹50000 as interest per annum, you do not have to pay taxes.

Moreover, this type of savings account is as liquid as a normal savings account. It means you can deposit or withdraw funds at any time you want. However, just like a regular savings account, you must maintain a minimum balance.

In the case of a generic amount, the minimum balance requirement is ₹50, and if the account has a cheque facility, the amount is ₹500.

How to Open a Post Office Savings Bank Account?

There are two ways in which you can open a savings account, online and offline. If you want to know how to open a post office savings account, follow these steps:

Online Process

The following is the process of opening a post office savings account online:

Step 1: Download the official mobile app of the India Post Payments Bank.

Step 2: Click on ‘’Open Your Account Now!”.

Step 3: Add your mobile phone number and Permanent Account Number (PAN).

Step 4: Enter the OTP you received via SMS.

Step 5: Enter your Aadhaar number.

Step 6: Confirm your Aadhaar number by entering the OTP received on your Aadhaar registered mobile number.

Step 7: Add all the necessary personal information required.

Step 8: Add your address details.

Step 9: Fill up the nominee's details.

Step 10: Check all the details properly and click on confirm.

After completing the process, your savings account will be created.

Offline Process

Here is a detailed step-by-step guide for post office savings account offline opening:

Step 1: Visit your nearest post office.

Step 2: Download the savings account opening application form or collect it from the post office.

Step 3: Download or collect the KYC form from the post office.

Step 4: Fill in the application and KYC form correctly with all the necessary details.

Step 5: Attach recent passport-size photographs to the application form and KYC form.

Step 6: Submit all documents, such as identity proofs and address proofs, with self-attestation, along with the two forms.

After completing this process, your account will be opened within a week.

What Are the Documents Needed to Open a Post Office Savings Bank Account?

Here are all the documents you need to submit to open a post office savings bank account:

Application Form
KYC (Know Your Customer) Form
PAN (Permanent Account Number) Card
Voter ID Card
Aadhaar Card
Driving Licence
Date of Birth Proof
Employment Proof

What Are the Benefits of Opening a Post Office Savings Bank Account?

Here are all the benefits you can avail by opening a post office savings bank account:

Anyone above the age of 10 years can open and operate these savings accounts.
You can add a nominee to your post office savings account.
You can open an account individually or have a joint account with anyone.
An individual account can be converted to a joint account, and you can do vice versa with the joint accounts as well.
They provide cheque books, debit cards and passbooks with the savings account.
The minimum deposit amount to open the account is only ₹500.
Offer liquidity better than any other financial instrument.
You will earn interest on your account balance periodically, such as monthly, quarterly and yearly.
You can transfer a savings account from one post office to another.

Post office savings bank accounts offer all the necessary benefits you can get from a savings account. It is one of the best savings accounts as they offer services to all the people who live within the vicinity of a post office. Keep the above-mentioned information in mind if you want to open a savings account in the post office.

FAQs About Post Office Savings Bank Accounts

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How to check the post office savings bank account balance online?

To check the post office savings bank account balance online, you must install the official mobile application of Indian Post Payments Bank and log in with your credentials.

How to withdraw money from a post office savings account?

You can withdraw money from a post office savings account with debit cards via ATM or visit the post office and withdraw funds with self-cheques.

Why must the KYC process be completed to open a savings account in the post office?

According to the regulations of the RBI, customers must complete the KYC process before opening a savings account. If your KYC process is completed, you can make unlimited transactions. Without the KYC, the deposit limit for savings accounts is ₹1 lakh.