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What Is Post Office Savings?

One of the allied services offered by the Department of Posts is the Post Office Savings Bank.

It is one of the largest and oldest banking service institutions in the country. The Department of Posts operates the Post Office Savings Scheme function on behalf of the Ministry of Finance and under this scheme, more than 20.5 crore savings account are serviced.

These accounts are operated and managed through the network of post offices across the country.

Following are some of the saving schemes provided by the post office

  • Savings Account Schemes
  • Recurring Deposit Schemes
  • Time Deposit Schemes
 
  • Public Provident Fund Schemes
  • Monthly Income Schemes
  • National Savings Certificates
 
  • Kisan Vikas Patras
  • Senior Citizens Savings Scheme

Details of the same can be found here

How Do POS Work?

  • A Post office savings account can be opened with a minimum of Rs. 20 and a further deposit into the account may be as low as Rs. 5.
  • All such accounts will be opened after proper introduction of the depositor through an introducer known to the Post Office who has an account (with cheque facility) in the same post office.
  • Accounts can be opened by an individual, or jointly by 2 or 3 adults.
  • Maximum ceiling of deposits in a single account is Rs.1, 00,000 and Rs.2, 00,000 for joint accounts.
  • Cheque Book facility is available at all the Post Offices subject to a minimum balance of Rs.250/- in the concerned account.
  • No commission is charged for realization of cheque anywhere in India if the cheque is presented for deposit at any post office.
  • The rate of interest is 3.50% per annum in case of single and joint accounts.
  • The instruments are transferable to any post office in India
  • No Tax Deduction at Source (TDS)

The POS schemes find appeal among various sections of the society, as they enable regular and long-term investments without risk. It also provides security of capital and interest and is best suited for conservative investors.

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