Post Office Savings Account: ​Everything You Need to Know

The Post Office Savings Account is a popular and accessible savings option offered by Postal Departments in many countries, including India. It is a basic savings account that allows individuals to securely deposit and save their money while earning a modest rate of interest.

Key Features of the Post Office Savings Account

1. Accessibility: Post Office Savings Account is available to both individuals and joint account holders. They can be opened with a minimum initial deposit, which may vary based on the country and specific Postal department.
2. Interest Rates: The interest rate on Post Office Savings Account is set by the respective Postal departments and are subject to change. The rates tend to be competitive and may vary depending on the prevailing market conditions. In India, it is 4% per annum.
   (i) Interest will be calculated on the basis of a minimum balance between the 10th of the month and the end of the month and allowed in whole rupees only 
   (ii) No interest will be allowed in a month if the balance between the 10th and last day of the month falls below Rs. 500 
   (iii) Interest shall be credited to the account at the end of each Financial Year at the interest rate prescribed by the Ministry of Finance 
   (iv) At the time of closure of an account, interest will be paid up to the preceding month in which the account is closed 
   (iv) u/s 80TTA of the Income Tax Act, from all Savings Bank Accounts, interest up to Rs. 10,000 earned in a Financial Year is exempted from taxable Income
3. Minimum Balance: Post Office Savings Account may require a minimum balance to be maintained in the account. If the balance falls below the specified minimum, there may be penalties or charges levied.
4. Withdrawals and Deposits: Account holders can make deposits and withdrawals at their convenience, subject to any limitations or restrictions set by the postal department. The withdrawal process typically involves submitting a withdrawal form or using a passbook for transactions.
5. Safety and Security: Post Office Savings Account is considered safe and secure as they are backed by the government. They provide depositor protection and are often insured, offering peace of mind to account holders.
6. Accessibility to Services: Post Office Savings Account often provides additional services such as fund transfers, bill payments, and access to other financial products offered by the Postal Department.
7. Who can open Post Office Savings Account: i)a single adult,
   (ii) two adults only (Joint A or Joint B) 
   (iii) a guardian on behalf of a minor 
   (iv) a guardian on behalf of a person of unsound mind ​ 
   (iv) a minor above 10 years in his own name
8. Only one account can be opened by an individual as a single account.
9. Only one account can be opened in the name of a minor/above 10 years of age (self)/person of unsound mind.
10. In case of the death of a Joint holder, the surviving holder will be the sole holder, if surviving holder already has a single account in his/her name, the Joint account has to be closed.
11. Conversion of a single to a joint account or vice versa is not allowed.
12. Nomination is mandatory at the time of opening of account.
13. Minor after attaining majority has to submit a fresh account opening form and KYC documents of his/her name at the concerned Post Office for conversion the in his/her name.
14. Deposit and Withdrawal​ in Post Office Savings Account: – All deposits/ withdrawals shall be in whole rupees only. 
    (i) Minimum deposit amount: – Rs. 500 (subsequent deposit not less than 10 rupees) 
    (ii) Minimum withdrawal amount: – Rs. 50 
    (iii) Maximum deposit: – No maximum limit 
    (iv)No withdrawal will be permitted which effect reducing of minimum balance of Rs. 500 
    (v) In case the account balance is not raised to Rs. 500 at the end of the financial year Rs. 50 will be deducted as Account Maintenance Fee and if the account balance became Nil the account shall stands automatically closed.
15. Documents required:-
    (i) Account opening form
    (ii) PAN (Permanent Account Number)
    (iii) Aadhaar Card

To open a Post Office Savings Account, you will generally need to visit your nearest post office branch and provide the required identification and address verification documents as per the regulations of the specific country. The postal department staff will guide you through the account opening process and provide you with the necessary forms and information.

It’s important to note that the specific features and terms of Post Office Savings Accounts may vary depending on the country and postal department. Therefore, it is recommended to contact your local postal department or visit their official website for detailed and up-to-date information about the Post Office Savings Account in your region.