Post Office Savings Account (SB) gives a safe government-backed way to save money with a fixed 4% annual interest. The account needs a minimum balance of ₹500 and is open to Indian citizens through the wide network of the Department of Posts, Ministry of Communications.
The scheme continues for the financial year 2026-27 with the same rate. The Ministry of Finance kept small savings rates unchanged for the April to June 2026 quarter, so the savings account still earns 4% per annum. Any resident citizen can open an account with as little as ₹500.
Post Office Savings Account (SB) - Introduction
Post Office Savings Account (SB) encourages citizens to save money safely through the vast network of the Department of Posts. The scheme offers an interest rate of 4% per annum and lets you open an account with a minimum of ₹500. Deposits and withdrawals are done only in whole rupees.
Deposit and Withdrawal Rules
- Minimum deposit is ₹500, and every later deposit must be at least ₹10.
- Minimum withdrawal is ₹50, while there is no upper limit on the amount you can deposit.
- Keep the balance above ₹500. If the balance stays below ₹500 at the end of the financial year, the Post Office deducts ₹50 as an Account Maintenance Fee. If the balance becomes zero, the account closes on its own.
Nomination
You can name up to four nominees per account at the time of opening using Form 10. You must state the share percentage for each nominee and whether they act as a beneficiary or a trustee for legal heirs. For detailed rules, refer to Rule 14 of GSPGR 2018.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Post Office Savings Account (SB) |
| Level | Central |
| Target Beneficiary | Individual |
| Ministry | Ministry of Communications |
| Department | Department of Posts |
| Interest Rate | 4% per annum |
| Benefit Type | Cash |
Benefits
This account offers a secure method to grow savings with a guaranteed rate of interest. The main benefits are listed below.
- Interest at 4% per annum on the balance in the account.
- Easy entry with a ₹500 minimum balance requirement.
- Interest earned up to ₹10,000 per financial year is exempt from tax under Section 80TTA of the Income Tax Act.
Interest Calculation
Interest is calculated on the lowest balance between the 10th and the last day of each month. The system credits the interest at the end of each financial year. No interest is earned in a month if the balance falls below ₹500 between the 10th and the last day.
Silent Accounts
An account becomes silent when no deposits or withdrawals happen for three consecutive financial years. You can revive a silent account for free at your Post Office by submitting updated KYC documents and your passbook, as per Rule 8 of Post Office Savings Account Rules 2019.
Eligibility
Any resident citizen of India can open this account. One individual can open a single account in their own name, and up to three adults may open a joint account. Guardians may open accounts on behalf of minors or persons of unsound mind, and minors above 10 years of age may open and operate their own accounts.
When a minor turns 18, they must submit a new Account Opening Form and fresh KYC to convert the account to an adult status.
Application Process
Post Office Savings Account (SB) can be opened offline at any post office. The steps are simple and are given below.
STEP 1 - Visit your nearest Post Office and collect the Account Opening Form along with the KYC form.
STEP 2 - Fill in the required information carefully and attach copies of your PAN card, Aadhaar card, or other valid identity and address proof.
STEP 3 - Deposit the initial amount of at least ₹500 through cash or cheque.
STEP 4 - The Post Office will check your documents and activate the account.
Documents
Keep the following documents ready when you apply for the account.
- Valid PAN card.
- Aadhaar card or other government-approved identity proof.
- Proof of Date of Birth for minor accounts.
- KYC documents for all joint holders and for the guardian where applicable.
References
FAQ's
What is the Post Office Savings Account (SB)?
It is a government-backed savings scheme offering 4% annual interest with a minimum balance requirement of ₹500.
Who can open this account?
Any resident Indian citizen, including single adults, guardians for minors, and joint account holders of up to three people, can open the account.
Is there a maximum deposit limit?
No, there is no maximum limit for deposits in this account.
What happens if my balance falls below ₹500?
If the balance falls below ₹500, no interest is credited for that month, and a ₹50 maintenance fee may be deducted at the end of the financial year.
Is the interest earned taxable?
Interest up to ₹10,000 per financial year is exempt from tax under Section 80TTA of the Income Tax Act.
How do I become a nominee?
You can nominate up to four individuals at the time of account opening by filling out Form 10.