How To Open Post Office Savings Account: Know Details

A Post Office Savings Account (POSA) is a deposit scheme offered by post offices throughout India, backed by the Government of India. POSA is a secure and reliable way to save money in India, providing a secure and accessible way to save money and earn interest. With low initial deposit requirements and a widespread network of post offices, POSAs are an accessible option for many, especially in rural India. Similar to savings accounts offered by banks, POSAs are popular due to their ease of use, accessibility, and reasonable interest rates. Currently, the interest rate in POAS is 4% per annum on individual and joint accounts. The interest is calculated monthly.

Key Benefits of a Post Office Savings Account (POAS)

Accessibility: Post offices have a widespread network, especially in rural areas.
Security: Your deposits with the Post Office in POAS are secure and backed by the government.
Fixed Interest Rate: POSAs offer a fixed interest rate, providing a predictable return on your savings.
Interest Rate: Earn a fixed interest of 4% on both single and joint accounts.
Tax Benefits: Interest earned up to Rs. 10,000 per year is tax-free, according to income tax regulations.
Flexibility: There is no lock-in period, and accounts can be transferred to any branch in India.
Withdrawal Flexibility: Depositors can withdraw money from their POSA whenever needed.

Opening and Maintaining a POSA

Opening a Post Office Savings Account is a straightforward process. The minimum balance required to maintain an account is Rs. 50 for a generic account and Rs. 500 if you require chequebook facility.

Eligibility and Required Documents:

To open a POSA, you must meet the following criteria:

Be an Indian citizen
Be above 18 years of age (or at least 10 years old if you are a minor)

You’ll also need the following documents:

Duly filled application form
Duly filled KYC form
PAN Card
Aadhaar Card/Passport/Driving License/Voter’s Card/MNREGA job card/letter issued by National Population Register

How to Open a Post Office Savings Account: A Simple Guide

While you cannot currently open a POSA fully online, here is a simple guide on how to get started:

Step 01: Visit the official India Post Website at https://www.indiapost.gov.in/

Step 02: Scroll down and click on the “Post Office Savings Bank” icon.

Step 03: Click on “Post Office Savings Account” to view interest rates, minimum balance requirements, and features.

Step 04: Scroll to the end of the section and click on “Forms Available.” Download and print the “Application Form Opening of Account.”

Step 05: Fill out the application form in block letters, attach passport-sized photographs, and prepare your KYC documents.

Step 06: Take the filled-out form and required documents to your nearest post office to complete the process.

Step 07: Once your KYC is verified and your account is opened, you will receive a kit containing your passbook, checkbook (if applicable), and ATM card (if requested).

Note: You can also visit your nearest post office and collect the “Application Form for Opening of Account” form.

Important Points to Note

Only one account can be opened per person.
In the event of the death of one account holder (in case of Joint Account), the other becomes the sole owner.
Joint accounts cannot be converted to single accounts and vice versa.
Accounts must have at least one transaction in 3 financial years to remain active.
A POSA can only be opened by paying cash.

Conclusion

A POAS is one of the great options for individuals looking for a secure, accessible, and reliable savings scheme in India. A POAS is a safe and reliable option for individuals. It is particularly beneficial for those in rural areas and those who prefer a fixed interest rate on their savings. With its accessibility, low deposit requirements, and government backing, a POSA is a great starting point for building a savings habit. With its ease of opening, withdrawal flexibility, and tax benefits, a POSA can be a valuable component of your financial portfolio. While the online account opening is not yet available, the process is still relatively straightforward and accessible through your local post office.

Disclaimer: The information is based on the latest research and development available. However, it may not fully reflect all the current aspects of the subject matter. Moneydaily.in advises readers to visit the IndiaPost’s website for further information.