Here's how you can open a post office savings account

Postal services in India enjoy strong access in terms of geography. Their banking services have helped deepen their influence in many remote regions. This led to an upsurge in financial inclusion and empowerment of rural Indian families.

Every post office across India has a savings/deposit scheme run by the central government. This is known as Post Office Savings Account. It provides returns on investment based on interest rates prescribed by the Ministry of Finance. Currently, the interest rate for individual/joint savings account is 4 percent per annum. Interest shall be credited in the account at the end of every Financial Year.

Post Office Savings Account are ideal for risk-averse investors who want assured returns with minimum investment.

How do you open an account here?

Follow the below steps to open a Post Office Savings Account:

• Download the application form online from indiapost.gov.in or visit the nearest post office to get a hard copy. Fill it and submit at the nearest post office branch with necessary KYC documents and passport size photographs
• Pay minimum deposit of ₹500 to open a savings account with cheque facility
• The account shall open within next two working days

To activate internet banking services with India Post, follow the steps given below:

• Visit indiapost.gov.in and click on ‘New User Activation’ button
• Enter Customer ID and Account ID
• User ID will be generated

Some key features of Post Office Savings Account are listed below:

• One transaction in three fiscal years is necessary to keep the account active
• Interest received up to ₹10,000 in a financial year is exempted from tax
• No lock-in or maturity period
• Account can be opened individually or jointly by 2-3 adults

Post Office has given an opportunity to every citizen of this country to reap the benefits of banking services irrespective of their geographical limitations. It has greatly helped rural families to become a part of the financial sector and let their money grow. In a small way, this has bridged the gap between urban and rural India.