Open Post Office Account in only Rs 20/-

Dr. Sangeeta Soi
Dr. Sangeeta Soi

Opening an account in post office has now been made simpler and many people don’t know about it. It has been made possible due to the activities of government to make activities for population more simpler and easier. Post Offices now are offering savings account schemes at attractive interest rates. Catering to different sections of the population, Post Offices have rolled out savings accounts and schemes- from a regular post office savings account, to a senior citizen savings account, etc. Customers holding a savings account with a post office can subscribe to various savings schemes through their account. 

Types of Accounts in Post Office Savings Schemes 

Post offices across our country provides following saving schemes; 

  • Post Office regular savings account

  • Post Office time deposit account (TD)

  • Post Office recurring deposit account (RD)

  • Post Office monthly income deposit account (MIS)

  • Public Provident Fund account (PPF)

  • Sukanya SamriddhiYojana Account (SSY)

  • KisanVikas Patra (KVP) account

  • National Savings Certificate (NSC)

  • Senior Citizen savings scheme


Features and Benefits of Post Office Savings Account 

Listed below are few features and benefits of Post Office savings account below: 

  • An initial deposit in cash is fist required from the customers’ side in order to open the account. 

  • The depositor can nominate someone for the account as nominee who can operate the account  o behalf of the account holder. 

  • As per the wish of the account holder, the savings account can be transferred from one Post office to another - in case the account holder has shifted his/her house. 

  • Customers can open only one savings account in a post office. 

  • Saving account for minors can be opened by parents and guardians 

  • Children above age of 10 years can open and operate the account independently. 

A post office savings account can be opened either by an individual or joint. 

For the savings account to be deemed operational, account holders will have to make at least one transaction in three years, for the savings account to be deemed operational 

While opening the account customers are offered a debit card  Individual savings accounts can be converted to a joint account on provision of KYC documents of the second party. 

Following a transfer, customers can transfer the balance in their account from one post office to another. 

Depending on the type of savings account a customer opts for, he/she will be required to maintain a minimum balance. 

Using the debit card that is offered when opening the account, account holders can make withdrawals from any ATM across the country, using the debit card that is offered while opening the account. 

Savings up to Rs.10, 000 inclusive of the interest are exempt for tax under section 80L of the Income Tax  

Steps to Open Post Office Savings Account 

Below are mentioned few steps to open a Post Office savings account: 

  • Visit any Post office closest to you. 

  • Request for the savings account application form at that post office 

  • Fill in the post office savings account application form. 

  • Submit the required KYC documents - identity and address proof. 

  • Submit recent passport size photographs. 

Once the form, documents and photographs have been submitted, make the initial deposit towards the account. The deposit has to be made in cash. 

Documents Required to Open Post Office Savings Account 

Customers will have to submit the following documents along with the application form for a savings account: 

Address proof - Driver’s license, Voter ID card, Aadhaar card, telephone or electricity bill, etc. 

Identity proof - Passport, Aadhaar card, Driver’s license, Voter ID, etc. 

2 recent passport size photographs. 

Post office savings account application form. 

Minimum balance required to open a savings account - in cash. 

 Eligibility Criteria for Post Office Savings Account 

Listed below is the eligibility criterion that has to be met for one to hold a post office savings account: 

Should be a resident of India. 

Any minor above the age of 10 years can open a post office savings account independently. 

Should have valid KYC documents. 

How to open Post office account in only  Rs 20/- 

 Name of scheme 

Post Office Savings Account 

Interest Payable, Rates, Periodicity etc 

4% per annum on individual/ joint accounts. 

Investment limits and denominations 

Minimum Rs 20/- for opening. 

Salient features including Tax Rebate 

Invest minimum INR 20/- for opening.  

 Account can be opened by cash only. 

  • Minimum balance to be maintained in a non-cheque facility account is INR 50/-.

  • Cheque facility available if an account is opened with INR 500/- and for this purpose minimum balance of INR 500/-in an account is to be maintained.

  • Cheque facility can be taken in an existing account also.

  • Interest earned is Tax Free up to INR 10,000/-  per year from financial  year 2012-13.

  • Nomination facility is available at the time of opening and also after opening of account.  

  • Account can be transferred from one post office to another. 

  • One account can be opened in one post office

  • Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.

  • Joint account can be opened by two or three adults.

  • At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.

  • Single account can be converted into Joint and Vice Versa.


Minor after attaining majority has to apply for conversion of the account in his name.  

Deposits and withdrawals can be done through any electronic mode in CBS Post offices. 

 *Inter Post office transactions can be done between CBS post offices  

* ATM/Debit Cards can be issued to Savings Account holders (having prescribed minimum balance on the day of issue of card) of CBS Post offices. 

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