Interest payable, Rates, Periodicity
4.0% per annum on individual / joint accounts
Minimum Amount for opening of account and maximum balance that can be retained
Minimum INR 500/- for opening
Salient features
(a) Who Can Open:-
(i)a single adult
(ii)two adults only (Joint A or Joint B)
(iii)a guardian on behalf of minor
(iv)a guardian on behalf of person of unsound mind
(iv)a minor above 10 years in his own name
- Only one account can be opened by an individual as a single account
- Only one account can be opened in the name of minor/above 10 years of age (self)/person of unsound mind
- In case of death of a Joint holder, the surviving holder will be the sole holder, if surviving holder already has single account in his/her name, Joint account have to be closed
- Conversion of single to joint account or vice versa is not allowed
- Nomination is mandatory at the time of opening of account
- Minor after attaining majority has to submit fresh account opening form and KYC documents of his/her name at concerned Post Office for conversion of the in his/her name
(b) Deposit and Withdrawal
All deposits/ withdrawals shall be in whole rupees only.
(i) Minimum deposit amount: – Rs. 500 (subsequent deposit not less than 10 rupees)
(ii) Minimum withdrawal amount: – Rs. 50
(ii)Maximum deposit: – No maximum limit
(iii)No withdrawal will be permitted which effect reducing of minimum balance Rs. 500
(iv) 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 became Nil the account shall stands automatically closed
(C) Interest
(i)Interest will be calculated on the basis of minimum balance between 10th of the month and end of the month and allowed in whole rupees only
(ii)No interest will be allowed in a month if balance between 10th and last day of the month falls below Rs. 500
(iii)Interest shall be credited in account at the end of each Financial Year at the interest rate prescribed by Ministry of Finance
(iv)At the time of closure of account, interest will be paid up to the preceding month in which account is closed
(iv)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
(d) Silent Account
(i)If no deposit/withdrawal takes place in an account during continuous three financial years, the account shall be treated as silent/dormant
(ii)Revival of such account can be done by submitting application along with fresh KYC documents and passbook at concerned Post Office
(e) Additional Facilities available on PO Savings Account
- To avail below facilities on your PO Savings Account, kindly download and submit respective form at concerned Post Office
- Cheque Book.
- ATM Card.
- ebanking/Mobile Banking.
- Adhaar Seeding.
- Ataal Pension Yojana (APY).
- Pardhan Mantri Suraksha Bima Yojana (PMJJBY).
Post Office Savings Account Rules 2019
G.S.R. 921(E).—In exercise of the powers conferred by section 3A of the Government Savings
Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme, namely:-
- Short title and commencement.-(1) This Scheme may be called the Post Office Savings Account Scheme,
2019.
(2) It shall come into force on the date of its publication in the Official Gazette. - Definitions.- (1) In this Scheme, unless the context otherwise requires,-
(a) “account” means an account opened under this Scheme;
(b) “account holder” means an individual in whose name the Account is held;
(c) “Act” means the Government Savings Promotion Act, 1873 (5 of 1873);
(d) “Form” means forms appended to this Scheme;
(e) “General Rules” means the Government Savings Promotion General Rules, 2018;
(f) “year” means a period of twelve months commencing on the 1st day of April.
(2) Words and expressions used herein but not defined shall have the meanings assigned to them in the
Act and in the General Rules. - Type of Account.- (1) An account may be opened by making an application in Form-1 by the following:-
(a) a single adult;
(b) two adults jointly;
(c) a guardian on behalf of a minor;
(d) a guardian on behalf of a person of unsound mind;
(e) a minor who has attained the age of ten years, in his own name:
Provided that only one account can be opened by an individual as a single account:
Provided further that an account under clause (e) can only be opened if an account under clause (c)
does not exist in the name of the minor or vice versa.
(2) The share of an individual in the balance in a joint account shall be in equal proportion. On the death
of one of the account holder in a joint account, the surviving account holder shall be treated as the sole owner
of the account and he may continue the account in accordance with the provisions of this Scheme provided
another single account is not held in his name. In case a single account exists in the name of the surviving
holder, the account shall have to be closed. - Deposits and withdrawals.- (1) The account may be opened with a minimum deposit of five hundred
rupees and no subsequent deposit shall be accepted for an amount less than ten rupees.
(2) There shall be no maximum limit of deposit in an account.
152 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(3) Withdrawals from the account for not less than fifty rupees may be made by presenting pass book
alongwith Form-2 duly filled in and signed. Withdrawals from the account may also be made subject to the
availability of balance above minimum prescribed limit by way of cheque or electronic means.
(4) No withdrawal shall be permitted which has the effect of reducing the balance to less than five
hundred rupees.
(5) In case of an account having a balance of less than five hundred rupees immediately before the
commencement of this Scheme, the account holder shall deposit the difference amount within a period of one
year from the date of commencement of this Scheme, so as to bring the balance in the account to a minimum
of five hundred rupees and the accounts office shall be responsible for advising the account holder through
appropriate mode to make the required deposits within the specified date.
(6) If the account holder fails to make such deposit within the specified period, an account maintenance
fee of one hundred rupees shall be deducted from the account on the last working day of each financial year
and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account
shall stand automatically closed and the account holder shall be notified accordingly. This provision shall be
applicable to all accounts including Silent Account.
(7) All deposits and withdrawals shall be made in whole rupees only. - Interest on deposits in an account.- (1) The interest at the rate of four per cent per annum shall be
allowed for a calendar month on the lowest balance at the credit of an account between the close of the tenth
day and the end of the month, and such interest shall be calculated and credited in the account at the end of
each year.
(2) The interest shall be allowed only on sums of whole rupees and shall be rounded off to the nearest
rupee and for this purpose any amount of fifty paisa or more shall be treated as one rupee and any amount less
than fifty paisa shall be ignored.
(3) No interest shall be allowed on an account for any month in which the balance at credit is below five
hundred rupees at any time between the tenth and the last day of the month.
(4) If an account is closed during a year, interest shall be allowed upto the end of the month preceding the
month in which the account is closed.
(5) In the event of death of an account holder, the interest in his account shall be paid only in the end of
the month preceeding the month in which the account is closed. - Confirmation of balance.- A pass book or statement of account of the account holder shall be issued by
the accounts office. The account holder may confirm balance in his account by presenting his pass book
during office hours. - Issue of cheque book.- A cheque book containing ten leaves may be issued to the account holder on an
application, free of charge in a year. Subsequent issue of cheque book shall be charged at two rupees per
cheque. - Silent Account.- (1) An account in which a deposit or a withdrawal has not taken place for three complete
years, shall be treated as a Silent Account and credit of interest in a Silent Account shall not be treated as a
transaction.
(2) Transaction in a Silent Account shall be allowed only after revival of account. The account can be
revived through an application by the account holder and after completion of the due process by the accounts
office. - Final withdrawal on closure.- The account may be closed at any time by the account holder by
surrendering the pass book, unused or partially used cheque book, if any, etc. to the accounts office, along
with the application in Form-2 for closure of the account. - Application of General Rules.- The provisions of the General Rules shall, so far as may be, apply in
relation to the matters for which no provision has been made in this Scheme. - Power to relax.- Where the Central Government is satisfied that the operation of any of the provision of
this Scheme causes undue hardship to an account holder, it may, by order for reasons to be recorded in
writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.
