What is a Balance Sheet?
November 12, 2018
Small Industries Development Bank of India
November 15, 2018

What is a Post Office Savings Scheme?

Last Update Date : April 30, 2019
Estimated Read Time: 5 min

post office savings scheme

Post Office Savings Account (POSA) scheme is just like any other regular savings account. However, this account can be opened only in a post office. A large number of post offices are located across the country which gives rural population access to banking facilities. This comprehensive guide by H&R Block India will help you understand all about Post Office Savings Account scheme.

Benefits and Features of Post Office Savings Scheme

Along with the accessibility to rural citizens, opening a Savings Account in the Post Office can be beneficial in many other ways.

  • The Savings account can be opened at Post Office with the minimum balance of Rs 20 (without cheque facility) or Rs 500 (with cheque facility), paid in cash.
  • ATM facility is available for all the account holders. This debit card could be used in any ATM across India.
  • A savings account could be opened by a minor above 10 years of age for his individual usage whereas, for children below 10 years of age, the account has to be operated by the parent or guardian.
  • The maximum of three people can operate an account under the joint account facility.
  • At the time of opening the account, you can choose to nominate someone for receiving the proceeds of the account in case of death.
  • A post office savings account can be transferred to any other branch without any hassle. It lies completely at the choice of the account holder to do so.
  • Under section 80L of Income Tax Act, the interest earned over the account savings are tax-free up to Rs 10,000 per year.
  • The account goes under ‘Silent’ stage when no withdrawal has been made for three years. At this stage, no transaction can be made through the account unless it is revived.
  • Only one savings account can be opened by a person.
  • The Savings account has no maturity period. You can close the account whenever you wish.


  • Any citizen of India above 10 years of age can open a Post Office Savings Account.
  • For minors under 10 years of age, an account can be opened under the operation and management of a guardian/ parent.
  • Two to three people can open a joint account by submitting their required documents. For knowing more about the required documents, scroll down.

Documents Required to open Post Office Savings Account

For Transfer of Account

An application could be made through the prescribed form SB10(b) or manually. This application has to be submitted at the transferring post office or the current one.

For Transfer of Certificate

You would have to submit the application by filling the NC32 form in the current post office or the transferring one.

For Revival of account

By visiting your post office branch, you would have to fill an application and submit it to them. If the minimum balance required is not maintained, the service charge will be deducted.

For Duplicate Certificate

For stolen or lost certificates, you must fill the NC29 form and submit it in your nearest Post office along with a statement in which all the particulars of the certificate are mentioned. An indemnity bond with a bank guarantee is essential. For defaced or mutilated certificates, NC29 form along with the above-mentioned statement has to be submitted in the nearest Post Office.

To open a Savings Account

Fill the application form provided by the post office along with 2 passport size photographs and KYC documents – identity and address proof like Aadhar card, PAN or Electricity bill.

Steps to open Account under Post Office Savings Scheme

The procedure to open a Savings account at Post office is painless and clear.

  • Step 1: Visit your nearest Post office and ask for an application form for opening of a Savings account
  • Step 2: Fill up the form and submit it with all the required KYC documents and passport size photograph
  • Step 3: Deposit at least Rs 20 which is the minimum balance required in the account or Rs 50 if you want to open the account without cheque book

That’s all. Your account will be activated soon after the completion of these steps.

Withdrawal Process

You are free to withdraw from your savings account as per needs. However, the minimum balance should be maintained, failing which, you will not be able to access the required amount from your account.

Facilities and Charges under Post Office Savings Scheme

Minimum balance for Savings AccountWith cheque facility – Rs 500

Without cheque facility – Rs 50

Maximum balance for Savings AccountRs 1,00,000
Maintenance Charge for a yearRs 100
PIN Regeneration ChargeRs 50
Withdrawal from other bank ATMsFREE

Metro – For first 3 transactions

Non-metro – For first 5 transactions

One day spending limit (Online/POS terminal)Rs 65,000
IMPSRs 4 per transaction
NEFTRs 2.5 per transaction
AEPSFREE up to Rs 10,000
UPIRs 4 per transaction

Difference between POSA and India Post Payments Bank Savings Account

You might know that both Post Office Savings Account and India Post Payments Bank Account offer an interest of 4% per quarter. But if we dive deeper into the topic, lots of dissimilarities unfold.

FactorsPost Office Savings AccountIndia Post Payments Bank Account
Number of Branches1,54,882650
Minimum deposit requiredRs 20Rs 0
Minimum balanceRs 50Rs 0
Maximum LimitRs 1,00,000None

Interest Rate

The interest rates are calculated every month and the Central Government decides them for the post office account. Currently, the rate of interest is 4 percent per annum.

People also ask

Q. What are the steps for issuing duplicate certificates?

A. After submitting the required documents (see above) a duplicate certificate will be issued as soon as possible.

Q. How can I issue a cheque book?

A. You would have to ensure that the minimum balance in your account is Rs.500 following which, ask for the cheque book by visiting your nearest branch.

Q. What are the cheque realization charges for outstation cheques?

A. If the cheque bounces, Rs.50 is deducted as the service charge. For the first thousand rupees, Rs.30 will be deducted. Following which Rs.31 for additional thousands will be reduced from the account.

Q. What will happen to the SB account if depositor passes away?

A. In case of account holder’s death, the Savings account gets claimed by the nominee of the account. If no nominee is mentioned by the account holder, the legal heir could provide legal evidence for the same and claim the amount.

Q. On losing my current passbook can I apply for a duplicate?

A. Manuscript application could be provided by attaching postage stamps of the prescribed fees and submitting it to the post office.

How can H&R Block help you?

Saving taxes and filing income tax return accurately becomes very easy when you have professional help. This is where we come into the picture. You can either use our intuitive tax filing platform to easily file your tax return or let our tax experts file it for you. We have a team of in-house tax experts who can file your tax returns accurately while giving you maximum tax benefits.

Leave a Rating!
5.0 (3 Votes)
CA Madhuri Marne
Madhuri is a tax expert at H&R Block (India) with over a decade of professional experience. Having co-authored a book on economics for the ICAI exam, she now enjoys writing about tax-related topics in a simple and easy manner. Outside of work, Madhuri is passionate about teaching students who are appearing for professional exams.

Still Have Questions?