About this banking scheme
The objective of the Post Office Savings Account (SB) scheme is to encourage people to save money safely with the government. It offers easy access, a low minimum balance of Rs. 500, and steady interest, helping individuals build regular saving habits.
The Post Office Savings Account (SB) scheme, operated by the Department of Posts under the Ministry of Communications, Government of India, offers an interest rate of 4% per annum with interest paid periodically. It can be opened with a minimum amount of Rs. 500, and the account holder must be a resident citizen of India.
Deposit and Withdrawal
- All deposits/ withdrawals shall be made in whole rupees only.
- Minimum deposit amount: – Rs. 500 (subsequent deposit not less than- Rs. 10)
- Minimum withdrawal amount: – Rs. 50
- Maximum deposit:- No maximum limit
- No withdrawal will be permitted which has effect of reducing minimum balance under Rs. 500
- Note: In case account balance not raised to Rs. 500 at the end of financial year, Rs. 50 will be deducted as Account Maintenance Fee and if account balance becomes Nil, the account shall stand automatically closed.
Nomination
Please refer Rule-14 of GSPGR 2018
- A Depositor in a Single Account, or the depositors in a joint account, as the case may be, shall nominate one or more individuals as nominee but not exceeding four individuals, who in the event of the death of the depositor in a Single Account or all the depositors in a joint account, shall be entitled to receive the eligible balance.
- Such nomination shall be made at the time of opening of the account by furnishing the following information in Form 10:
(a) Name(s) of the nominee(s);
(b) Percentage of share each nominee shall be entitled to;
(c) Whether the nominee shall receive the amount as a beneficiary with absolute and exclusive right of ownership, or as a trustee for the benefit of the legal heirs of depositor.
Benefits at a glance
| Scheme name | Post Office Savings Account(SB) (POSA) |
|---|---|
| Launched by | Ministry Of Communication |
| Department | Department of Posts |
| Benefit type | Cash (money paid to your bank account) |
| Category | Banking |
| Level / State | Central · All India |
| Official portal | indiapost.gov.in (link at the end of this page) |
Key facts
| Scheme type | Centrally Sponsored Scheme |
|---|---|
| Scheme for | Individual |
| Application mode | Offline |
| Last date | Ongoing (no last date notified) |
| Age | 10+ years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 10+ years
- 📝Offline
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
- Safe place to keep money with 4% interest.
- Easy to open with just Rs. 500 minimum balance.
Interest on deposits
- Interest will be calculated based on minimum balance between 10th of the month and end of the month and allowed in whole rupees only.
- No interest will be allowed in a month if balance at any time between 10th and last day of the month falls below Rs. 500/-.
- Interest shall be credited in account at the end of each Financial Year at the interest rate prescribed by Ministry of Finance from time to time.
- At the time of closure of account, interest will be paid up to the preceding month in which account is closed.
- 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.
Silent Account
(Please refer Rule-8 of Post Office Savings Account Rules 2019)
- If no deposit/withdrawal takes place in an account during continuous three financial years, the account shall be treated as silent.
- To revive a silent account, simply apply at your Post Office, along with updated KYC documents and passbook, this revival process is free of charge.
Who qualifies
- The applicant must be a resident citizen of India.
- The applicant can be a single adult opening an individual account.
- The applicant can open a joint account with up to three adults.
- The applicant can choose Joint ‘A’ type (operated jointly) or Joint ‘B’ type (operated by any holder).
- The applicant can be a guardian opening an account on behalf of a minor.
- The applicant can be a guardian opening an account for a person of unsound mind (Authorised Account).
- The applicant can be a minor above 10 years who can open and operate the account.
- The applicant can have only one single account in their name.
- The applicant cannot convert a single account into a joint account or vice versa.
- The applicant (in joint account) becomes the sole owner if other holders pass away, subject to rules.
Note: Upon reaching the age of 18 years, account holders must submit a new Account Opening Form (AOF) and fresh KYC documents at their Post Office to convert their minor account into an adult account.
Who is not eligible
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Papers to keep ready
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Registration walkthrough
Offline
Step 1: Visit the nearest Post Office and collect the Account Opening Form and KYC Form.
Step 2: Fill out the forms carefully and attach required documents (PAN, Aadhaar or valid ID proof, etc.).
Step 3: Submit the completed forms along with documents at the Post Office counter.
Step 4: Deposit the minimum amount (Rs. 500) through cheque.
Step 5: After verification, the account will be opened and details will be provided.
Frequently asked questions
What is the Post Office Savings Account (SB)?
The Post Office Savings Account is a government-backed savings scheme that allows individuals to deposit money safely and earn interest at 4% per annum.
Who is eligible to open this account?
Any resident citizen of India can open this account, including single adults, joint account holders (up to three), minors above 10 years, and guardians on behalf of minors or persons of unsound mind.
What is the minimum amount required to open the account?
The account can be opened with a minimum deposit of Rs. 500, making it easily accessible for all individuals.
Is there any maximum limit for deposits?
No, there is no maximum limit for deposits in this account, allowing flexible savings.
What is the minimum balance that must be maintained?
A minimum balance of Rs. 500 must be maintained in the account to keep it active.
What are the minimum deposit and withdrawal rules?
The minimum deposit allowed is Rs. 10, and the minimum withdrawal amount is Rs. 50. All transactions must be in whole rupees only.
How is interest calculated in this scheme?
Interest is calculated on the minimum balance available between the 10th and the last day of every month.
When is the interest credited to the account?
The interest is credited to the account at the end of each financial year as per government rates.
What happens if the balance falls below Rs. 500?
If the balance falls below Rs. 500, no interest is paid, and a maintenance fee of Rs. 50 may be charged.
Is the interest earned taxable?
Yes, but interest up to Rs. 10,000 per financial year from all savings accounts is exempt under Section 80TTA of the Income Tax Act.
Can nomination be done in this account?
Yes, the account holder can nominate up to four individuals and specify their share and entitlement.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
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