What is the Post Office Savings Account Minimum Balance

You can open Post Office Savings Accounts easily in India. It is a regular savings account like a bank account and you can earn interest on funds parked in it. 

This article will discuss the minimum balance in post office savings accounts.

Post Office Savings Account Minimum Balance

The ‘minimum balance in post office savings account’ is Rs.500. You need to deposit this amount while opening the account and need to maintain this balance to hold the account. There is no limit on the maximum amount that can be held in a post office savings account.

Some other rules and regulations related to a post office savings account are -

• The minimum withdrawal that is allowed is Rs.50

• You can earn an interest of 4% per annum

• The interest is calculated based on the minimum amount from the 10th of a month to the end of the month

• If the balance falls below Rs.500, no interest will be paid for that month

• If the minimum balance is not raised to Rs.500 at the end of the financial year, Rs.50 will be deducted as a maintenance fee

• If an account has no activity for three consecutive financial years, it will be treated as a Silent or Dormant Account

Can a Zero Minimum Balance Account be Opened in the Post Office?

No, a zero minimum balance account cannot be opened in a Post Office. You need to deposit Rs.500 while opening the account and need to maintain that amount.

If your balance becomes zero at any point, your account will be automatically closed.

Who can Open a Post Office Savings Account?

The following parties can open a Post Office Savings Account - 

• a single adult

• two adults only (Joint A or Joint B)

• a guardian on behalf of a minor

• a guardian on behalf of a person of unsound mind ​

• a minor above 10 years in their name

Please note that a joint account cannot be converted to a single account or vice versa.

Conclusion