Central GovernmentVerified

Post Office Savings Account(SB)

Ministry: Ministry Of Communication

Department: Department of Posts

The objective of the Post Office Savings Account (SB) scheme is to encourage people to save money safely with the government. It offers easy access, a low minimum balance of ₹500, and steady interest, helping individuals build regular saving habits.

Last verifiedToday

About This Scheme

The Post Office Savings Account (SB) scheme, operated by the Department of Posts under the Ministry of Communications, Government of India, offers an interest rate of 4% per annum with interest paid periodically. It can be opened with a minimum amount of ₹500, and the account holder must be a resident citizen of India. Deposit and Withdrawal 1. All deposits/ withdrawals shall be made in whole rupees only. 1. Minimum deposit amount: - ₹500 (subsequent deposit not less than- ₹10) 1. Minimum withdrawal amount: - ₹50 1. Maximum deposit:- No maximum limit 1. No withdrawal will be permitted which has effect of reducing minimum balance under ₹500 1. Note: In case account balance not raised to ₹500 at the end of financial year, ₹50 will be deducted as Account Maintenance Fee and if account balance becomes Nil, the account shall stand automatically closed. Nomination [Please refer Rule-14 of GSPGR 2018](https://www.indiapost.gov.in/documents/offerings/schemesandservices/posb/GSPREnglish2018.pdf) 1. A Depositor in a Single Account, or the depositors in a joint account, as the case may be, shall nominate one or more individuals as nominee but not exceeding four individuals, who in the event of the death of the depositor in a Single Account or all the depositors in a joint account, shall be entitled to receive the eligible balance. 1. Such nomination shall be made at the time of opening of the account by furnishing the following information in Form 10: (a) Name(s) of the nominee(s); (b) Percentage of share each nominee shall be entitled to; (c) Whether the nominee shall receive the amount as a beneficiary with absolute and exclusive right of ownership, or as a trustee for the benefit of the legal heirs of depositor.

Benefits

1. Safe place to keep money with 4% interest.

₹500

1. Easy to open with just ₹500 minimum balance.

Interest on deposits

1. Interest will be calculated based on minimum balance between 10th of the month and end of the month and allowed in whole rupees only.

₹500

1. No interest will be allowed in a month if balance at any time between 10th and last day of the month falls below ₹ 500/-.

1. Interest shall be credited in account at the end of each Financial Year at the interest rate prescribed by Ministry of Finance from time to time.

1. At the time of closure of account, interest will be paid up to the preceding month in which account is closed.

₹10.0K

1. u/s 80TTA of the Income Tax Act, from all Savings Bank Accounts, interest up to ₹10,000 earned in a Financial Year is exempted from taxable Income.

Silent Account

[(Please refer Rule-8 of Post Office Savings Account Rules 2019)](https://www.indiapost.gov.in/documents/offerings/schemesandservices/posb/PostOfficeSavingsAccountScheme2019English.pdf)

1. If no deposit/withdrawal takes place in an account during continuous three financial years, the account shall be treated as silent.

1. To revive a silent account, simply apply at your Post Office, along with updated [KYC ](https://www.indiapost.gov.in/documents/posb/KYC_SB_order_08_2023.pdf)documents and passbook, this revival process is free of charge.

Required Documents

  • PAN Card
  • Aadhaar Card / Valid ID Proof
  • Date of Birth Proof (for minor)
  • Joint holders’ KYC (if applicable)
  • Guardian KYC (for minor account)

✦ Required ◦ Optional

How to Apply

IIn-person

Quick Info

Level
Central Government
Max benefit
₹10.0K