Post Office Savings Account (SB): Features, Interest Rates, Eligibility & FAQs

Looking for a secure and accessible way to grow your savings? The India Post Office Savings Account is one of the most trusted small savings schemes in the country, backed by the Government of India.

With a competitive interest rate, minimal deposit requirement, and wide reach across urban and rural areas, it’s ideal for both new savers and seasoned investors.

This guide covers everything you need to know — features, eligibility, interest calculation, account rules, and answers to the most common questions.

Key Features of Post Office Savings Account (SB)

• Interest Rate: 4.0% per annum (calculated on monthly minimum balance, credited annually)

• Minimum Opening Balance: ₹500

• Minimum Withdrawal: ₹50

• Maximum Balance: No upper limit

• Account Type: Individual or joint (only up to two adults)

• Nomination: Mandatory at the time of account opening

• Account Maintenance Fee: ₹50/year if balance is below ₹500 at year-end

• Auto Closure: If balance hits zero, the account will be closed automatically

Eligibility to Open an Post Office Savings Account

Anyone can open a Post Office Savings Account, including:

• A single adult

• Two adults jointly (Joint A or Joint B)

• A guardian on behalf of:

  • A minor

  • A person of unsound mind

• A minor above 10 years in their own name

Important Notes:

• Only one single account can be opened per individual.

• One joint account allowed (2 adults only).

• Conversion from single to joint or vice versa is not allowed.

• After attaining majority, the minor must submit a fresh account opening form and KYC.

Post Office Savings Account Deposit and Withdrawal Rules

• Deposits: Must be in whole rupees

  • Minimum deposit: ₹10 after opening

• Withdrawals:

  • Minimum: ₹50

  • Must maintain ₹500 minimum balance

• Penalty:

  • If balance < ₹500 at fiscal year-end: ₹50 fee

  • If balance becomes zero: Account is auto-closed

Post Office Savings Account Interest Calculation

• Calculated on the minimum balance between the 10th and the last day of each month

• No interest if balance falls below ₹500 during that period

• Credited annually at the end of the financial year

• Tax Benefits: Interest up to ₹10,000/year exempt under Section 80TTA of the Income Tax Act

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Post Office Savings Account Interest Rate & Tax Benefits (2025)

• Interest is calculated based on the minimum balance between the 10th and last day of each month

• Credited annually at financial year-end

• No interest if balance dips below ₹500 during the month

• Tax Exemption:

  • Under Section 80TTA, interest up to ₹10,000 per year is tax-free for individuals

Dormant or Silent Accounts

• If there’s no deposit/withdrawal for 3 consecutive financial years, account becomes dormant

• To reactivate:

  • Submit an application with fresh KYC documents and passbook at your Post Office

Additional Facilities Available

To avail of the below, submit the respective form at your Post Office:

• Cheque Book

• ATM/Debit Card

• eBanking and Mobile Banking

• Aadhaar Seeding

• Insurance Schemes:

  • Pradhan Mantri Suraksha Bima Yojana (PMSBY)

  • Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

• Pension Scheme:

  • Atal Pension Yojana (APY)

Documents Required to open Post Office Savings Account

• Duly filled Account Opening Form

• KYC Documents (Aadhaar, PAN, or other valid ID)

• Passport-size photograph

• Proof of Address

• Nominee details (mandatory)

If you’re wondering how to withdraw money from your EPF (Employees’ Provident Fund) account whether due to retirement, a job change, or financial emergency you can check this here.

Your Complete Guide to the Employee Provident Fund

Frequently Asked Questions (FAQs)

What is the interest rate for Post Office SB Account in 2025?

4.0% per annum, credited annually, calculated on the minimum monthly balance between the 10th and the month’s end.

Can I open more than one Post Office Savings account?

No. Only one single or joint account is allowed per individual.

Is there a penalty if I don’t maintain ₹500 balance?

Yes. ₹50 is deducted as a maintenance fee if your year-end balance is below ₹500.

How do I revive a dormant account?

Submit a written application along with your updated KYC and passbook at the Post Office.

Can I get a cheque book and ATM card with Post Office Savings Account?

Yes, you can request these by submitting the appropriate form at the Post Office.

Is my interest income taxable?

Interest up to ₹10,000/year is exempt under Section 80TTA of the Income Tax Act.

Can I convert my joint account to a single account?

No. Conversion from single to joint or vice versa is not permitted.

Can a minor open the account?

Yes, a minor above 10 years can operate the account independently. Guardians can open on behalf of younger children.

Post Office Saving Schemes Comparison Table (Updated for 2025)

Notes:

• Interest rates are subject to quarterly revision by the Ministry of Finance.

• PPF, SSY, and SCSS offer E-E-E tax benefits (Exempt on investment, interest, and maturity).

• You can hold many of these accounts jointly or individually depending on the scheme.

• Schemes like NSC, PPF, and TD can be pledged as collateral for loans.

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Conclusion

The Post Office Savings Account offers a reliable, low-risk savings solution with minimal barriers to entry. With its wide reach, tax benefits, insurance add-ons, and easy banking features, it remains a favorite for millions of Indians.

If you’re looking for a government-backed savings option with decent returns and low maintenance requirements, opening a Post Office Savings Account is a smart choice. Visit India Post for Official Details

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Disclaimer:

The information provided in this blog post is for general informational purposes only and is based on publicly available data as of the date of publication. While we strive for accuracy, interest rates and features are subject to change by India Post or the Ministry of Finance. Please verify the latest details from the official India Post website or consult your nearest Post Office before making any financial decisions.