Post Office Savings Account: Features, Benefits and Interest Rates

India Post offers a range of savings schemes like Post Office Savings Account, Kisan Vikas Patra, Public Provident Fund, Sukanya Samriddhi Account, etc., for investors. Each scheme features some exceptional benefits.

You can choose to easily invest your money in a post office savings account. Here you can deposit and withdraw money in a hassle-free way and earn reasonable interest. It functions in the same as any other retail bank savings account. One can start investing in PO savings account with a minimum of ₹500 at a 4% interest rate.

Features and Benefits of Post Office Savings Account 

Opening a post office savings account can be beneficial, considering the following exceptional features:

  • You can close your account conveniently at any time you decide
  • You can carry out account transactions at least once in three years to keep your savings account active
  • Minors above 10 years can open and operate their savings account in a post office
  • To open an account, you can only opt for a cash payment mode
  • Under section 80L of the Income Tax Act, you can get income tax relief on the interest amount received
  • You can choose a nominee while opening the savings account or after opening the account
  • ATM transaction is allowed for savings account
  • You can transfer your savings account from one post office to the other
  • If you have a single account, you can convert it to a joint account and vice versa
  • You can deposit and withdraw through electronic mode in CBS Post offices

Post Office Savings Account Interest Rate

The post office savings account interest rate is 4% per annum for both individual and joint account and may change depending on the instructions provided by the Central Government. However, the interest rate for the PO savings account is calculated based on the monthly account balance and is credited to the respective account at the end of the financial year. 

If you fail to maintain an account balance of a minimum of ₹500 between the 10th and the last date of the month, you are not eligible to receive any interest. You can receive an interest amount determined by the Ministry of Finance after every financial year. If you want to close the savings account, you will receive interest for up to the preceding month only. Besides, you can avail of a tax exemption of up to ₹ 10,000 on the interest received in a financial year under Section 80TTA of the Income Tax Act. 

Steps to Open a Post Office Savings Account

You can follow these easy steps for opening a post office savings account via offline mode:

  1. Collect the application form from your nearest post office 
  2. Fill up the form with the required details
  3. Attach the required documents and a passport-size photo along with the application form
  4. Deposit an initial investment which should be more than ₹20
  5. Your account will be opened instantly

PO savings account does not come with a maturity time or lock-in period, so you can withdraw your invested amount anytime you want. You can withdraw any amount that can drop the minimum balance below ₹500. However, you cannot withdraw less than ₹50. 

If you cannot visit the post office, you can open an online savings account as well. Here are the steps to follow for opening a post office savings account online:

  1. You need to get approval for internet banking from the nearest post office
  2. Log in to the post office’s official Internet Banking portal or IPPB application
  3. After selecting your preferable Savings Account from the product page, click on 'Apply Now.'
  4. Enter the required details such as name, birth date, address, contact number, etc.
  5. Scan and upload the necessary documents for verification
  6. Click on ‘Submit’ after scrutinising your application form
  7. Once your account is created, you can enter your password for the India Post savings account log in from your mobile phone

Documents Required to Open a Post Office Savings Account

You can easily open a post office savings account by online or offline mode with the following necessary documents:

  • Proper savings account opening application form
  • KYC registration form
  • Your identity proof is needed. It can be your driving license, Voter ID card, PAN card or Aadhaar card.
  • Employment proof or a job card should be provided if applicable
  • Deposit amount

Eligibility Criteria for a Post Office Savings Account

Anyone can open a savings account from the post office. Here are some essential criteria one needs to fulfill:

  • Any adult who is a citizen of India can open a post office savings account. Minor needs to be at least 10 years old to open a PO savings account
  • Citizens with mental or physical disabilities can also open a savings account at the post office
  • You can open an account on behalf of your minor child
  • Joint account options are also available for two or three persons

Other Post Office Saving Schemes with their Interest Rates

India Post has launched several other savings schemes other than savings accounts. Here are some of them with their respective interest rates:


A post office savings account is similar to a regular one from a bank and it is secure offering stable and guaranteed returns. With this savings account, you can withdraw your funds whenever an emergency arises without paying any penalty. Besides, you can earn a guaranteed interest on the investment depending on the amount invested.

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