HomeSavingsPost Office Account Rules 2021 that You Should Know

    Post Office Account Rules 2021 that You Should Know

    The new rules for post office accounts are coming in effect from 1st April 2021. Under this rule, there are various charges applicable for deposits and withdrawal of the amount based on the type of the account. Let’s check new Post Office Account Rules 2021.

    Post Office Account Rules 2021 that You Should Know

    There are different rules applicable for different types of account. So let’s check them one by one.

    Post Office Basic Saving Account Charges

    • Free withdrawal of cash allowed 4 times in a month
    • From 5th withdrawal onwards, there will be a charges of ₹ 25 or 0.50% of the withdrawn amount.
    • There are no charges applicable for cash deposits.

    Post Office Saving & Current Account Charges

    • Withdrawal upto ₹ 25000 / month is free.
    • Any additional amount withdrawal, there will be minimum ₹ 25 or 0.50% of the total withdrawn amount.
    • Cash deposits upto ₹ 10000 is free of cost.
    • Any cash deposit over ₹ 10000 attracts ₹ 25 on every transaction.

    Post Office AePS account Charges

    • There are no charges on India Post Payment Bank account transactions.
    • For non-IPPB network, the free transactions are capped at 3/month.
    • Transactions like, cash withdrawal and deposits and mini statement will be counted under this limit.
    • After the free limit, there will be a charge of ₹ 20 for cash deposits.
    • ₹ 5 is the charge for mini statement.
    • If the funds are transferred after the limit is over, then 1% of the transaction amount will be charged. (Minimum of ₹ 1 and maximum of ₹. 20)
    • Applicable GST and cess will be additional on these charges.

    Post Office Saving Account – Withdrawal Limits

    To provide ease to the rural post office saving account holder there is a limit hike for withdrawal specifically for the rural post office accounts. The limit is now hiked from ₹ 5000 to ₹ 20000 per customer.

    This will help to increase the post office deposits over the long period. Also, there is a change in minimum account balance maintenance. Now the minimum account balance that needs to be maintained is ₹ 500. If the minimum account balance is not maintained, then there will be a penalty of ₹. 100 as an account maintenance charges.

    If there is No. balance in the account then that account will automatically be terminated.

    How to open Post Office Account?

    • Visit India Post website or visit the nearest post office and get a form.
    • Fill in the form along with the necessary KYC documents and passport size photo of the applicant.
    • Deposit the amount you wish to have in your saving account. Minimum deposit amount is ₹ 500.
    • Separate forms are available for senior citizens.
    • Once you deposit the amount, your saving account will be generated.

    Benefits of Post Office Account

    • Minimum balance of ₹ 500 required for opening an account.
    • The cash can be withdrawn partly or completely if need be.
    • Account can be transfer from one post office to another post office.
    • Care banking post offices also provides ATM/debit cards.
    • Assured return on the deposits.
    • Higher returns on the deposits as compared to bank fixed deposit interest.
    • The account can be open for minor who is below 10 years of age. The account will be managed by the parents.
    • Quick and hassle free account opening process.
    • An individual account can be converted to joint account and vice-versa.
    • Offers mobile app for transactions and balance check.

    Download the Post Office Account Opening Form.

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    Vishal Jhaveri
    Vishal Jhaveri
    Vishal Jhaveri is an experienced finance blogger with expertise in financial markets such as Stocks, Mutual Funds, Insurance, and Personal Finance. He stresses the importance of acquiring financial knowledge, a subject not typically taught in schools, to create genuine wealth and ensure a stable life for oneself and one's family. It is vital to note that all content on his website is solely for educational and informational purposes and should not be interpreted as trade or investment advice.


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    Tuesday, March 21, 2023

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