The post office savings account is a deposit scheme provided by post offices across the country. This type of savings account provides a fixed interest on the balance. As the nationwide reach of post offices is much greater than banks, a large number of people can easily get access to savings accounts through post offices. Currently, post office savings accounts have a minimum balance requirement of Rs. 500. If the minimum balance is not maintained, then the account maintenance fee is deducted from the individual’s account.
However, the government has recently amended the post office savings account scheme rules to allow certain people to open zero balance basic savings accounts with the post office.
Who can open a post office savings account with zero balance?
- According to the notification issued by the Ministry of Finance on April 9, 2021, a zero-balance savings account with the post office can be opened by registered adult members of any government welfare scheme.
- Moreover, the guardian of a minor whose name is registered for any government benefit can also open a zero-balance savings account with the post office.
- It must be noted that these individuals cannot open more than one zero-balance savings account.
Mentioned below are some of the important benefits of a post office savings account and steps to open the same:
Benefits of post office savings account
- You can easily open a post office savings account with a nominal fee.
- The amount in the post office savings account be withdrawn either partly or completely, if needed.
- As post office savings accounts offer fixed interest rates, account-holders can avail an assured return on their investments.
- The post office savings account can be easily transferred from one post office to another.
- People residing in rural areas with no access to banks can open a savings account with the post-office.
- Some post offices also offer the facility of ATM/Debit Cards.
- For children below 10 years of age, the post office savings account can be opened and managed by parents or a guardian.
- Since post office savings accounts don’t have any maturity period, the account opening process is hassle-free and quick.
- An individual post office savings account can be converted into joint account and vice-versa.
You can open a post office savings account by following the steps mentioned below:
How to open a post office savings account?
Step 1: Visit the nearest post office and get an account-opening form. There are separate forms available for senior citizens.
Step 2: Fill-in the form accurately and submit it along with the necessary KYC documents and photographs.
Step 3: Pay the amount that you wish to deposit
Step 4: Once you pay the amount, your post office savings account will be opened.
Now that you are aware of the zero balance account opening at the post office, ensure to make the most of it to earn assured returns and grow your savings.