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Know All About Post Office Banking Services


India Post offers a range of banking and remittance services to the public, including savings bank accounts (Post Office Savings Account) and fixed deposits (under the Post Office Time Deposit Savings Scheme). One can access nine types of government-sponsored investment/deposit options in the form of small savings schemes at designated post offices. India Post, which operates a network of more than 1.5 lakh post offices across the country, pays interest up to 8.7 per cent per annum on investment in the nine small savings schemes, according to its website - indiapost.gov.in. India Post office also provides National Pension System (NPS) (all citizens model) accounts. NPS is a voluntary pension scheme managed by the Pension Fund Regulatory and Development Authority (PFRDA). 

Post office savings account investment/balance requirements
A Post Office Savings Account can be opened against a minimum deposit of Rs. 20. For a savings account without subscription to the post office's cheque book facility, a minimum balance of Rs. 50 to ensure operability. For subscription to the cheque book facility, the savings account is to be opened with a minimum deposit of Rs. 500, and for this purpose, minimum balance of Rs. 500 is required to be maintained, according to the post office portal. India Post also provides internet banking services for its savings bank accounts.

India Post Payments Bank savings accounts, current account
India Post Payments Bank (IPPB), which is also operated under the Department of Posts, offers savings and current accounts, money transfer and direct benefit transfer services as well as bill/utility payments. The India Post payments bank offers three types of savings bank accounts: regular, digital and basic. Among other features, all three types of IPPB savings bank accounts do not require the account holder to maintain any particular balance, meaning the account can be operated with zero balance.

Post office certificate-based investment schemes
One can set up a variety of bank accounts at the post office. Out of the nine small savings schemes, Kisan Vikas Patra and National Savings Certificate (NSC) are certificate-based investment schemes. 

Post office savings schemes income tax benefits
Investment in three of these small savings schemes offered by the post office is eligible for a deduction in taxable individual income up to Rs. 1.5 lakh in a financial year under Section 80C of the Income Tax Act. These post office schemes are: National Savings Time Deposit (five years), Public Provident Fund (15-year) and Senior Citizen Savings Scheme.


Type of accountInterest rateMinimum amount for opening accountMaximum balance allowed
Post Office Savings Account4% per annumRs. 20-
IPPB Regular Savings Account4% per annumNilRs. 1 lakh (end of day balance)
IPPB Digital Savings Account4% per annumNilRs. 1 lakh (end of day balance)
IPPB Basic Savings Account4% per annumNilRs. 1 lakh (end of day balance)
IPPB Current AccountNANilRs. 1 lakh (end of day balance)
(Source: India Post, India Post Payments Bank websites)
IPPB, however, requires its current account holders to maintain a monthly average balance - the average of daily balances in a month - of Rs. 1,000, according to the bank's website.

Interest rates applicable to other small savings scheme in a post office

The nine savings schemes at the post office offer interest rates in the range of 7 per cent to 8.7 per cent.
Small savings schemeInterest rate
Post Office Savings Account4%
National Savings Recurring Deposit Account7.3%
National Savings Time Deposit Account7-7.8%
National Savings Monthly Income Account7.3%
Senior Citizens Savings Scheme8.7%
Public Provident Fund8%
National Savings Certificates8%
Kisan Vikas Patra7.7%
Sukanya Samriddhi8.5%
(Source: India Post website)

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