Post Office Savings Account is a deposit scheme under the government of India. This Account is similar in many ways to a regular savings account. It is considered to be a highly secure scheme to deposit funds. The Post Office Savings Account is also beneficial to the remote parts of the country where banking services are limited. Post office Savings rates are also customer friendly.



  1. A Post Office Savings Account can be opened only by cash. You have to deposit a minimum of Rs.20 while opening the account.
  2. Maximum one account is allowed at a Post Office branch.
  3. Account can be held singly or jointly. A joint account can have a maximum of three account holders.
  4. Nomination facility is available.
  5. Interest earned is tax free which is upto Rs.10,000 per annum
  6. Income tax relief is available on the amount of interest.
  7. Atleast a single deposit or withdrawal must be done in every three year to keep the account active.


  1. It is easy to open a Post Office Savings Account. You can do it in your nearest Post Office and it requires only Rs.20.
  2.  It requires limited documents and proper procedure to open an account.
  3. It is one of the safest deposit scheme as they are backed by government.
  4. An adult as well as a minor (aged 10 and above) can open a Post Office Savings Account.
  5. Nomination facility is available at the time of opening the account and also after opening the account.
  6. ATM facility is available.
  7. Electronic deposit or withdrawal is possible at CBS enabled Post Office.
  8. Single account can be converted to joint account and vice-versa.
  9. The account can be transferred from one Post Office to another.
  10. The account can be closed at any time of his or her choice.


  1. You must be an Indian citizen and have completed the age of 18 to open a Post Office Savings Account.
  2. Minor who is atleast 10 years of age can also open an account.
  3. A guardian can also open an account on the behalf of minor.
  4. A maximum of three people can open a joint Post Office Savings Account.
  5. A person who is not of sound mind can also open an account.


The Interest rate of Post Office Savings Account range from 4% to 9% per annum on an individual or a joint account. Interest is tax-free up to Rs.10000 per year from the financial year 2012 to 2013.


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