Benefits of Having POST OFFICE SAVINGS BANK (SB) ACCOUNT

I also thought for once that it is like going back to history or primitive era if I am writing about Post Office Savings Bank Account, but when I saw the offering, it is as good as normal savings account which is offered by banks.

The Post Office Savings Bank account is very convenient if you have a post office near your residence or office. You must have noticed how post offices have reformed recently and they are now better placed in terms of building amenities & technology.

Post Office Savings Bank Account offers many facilities which are at par with banks. it is connected to CBS system so can transfer your balance to Recurring Deposit RD or even SIP by giving a one-time standing instruction. Too much for a post office, I thought, but this is functional.

Post Office is the largest banking network in India. With more than 25,000 branches in city and town you find it after every 5-10 kms. Minimum one office for one pin code policy makes the number around 1.3 lakh post office for villages.

The Basic Features are:

Now the details:

For Post Office Savings Bank Account (PO SB) you just need to maintain a minimum balance of Rs 50/- only. So if you want to maintain an account besides your main bank account for putting your savings or investing for small tenor goals like LI premium you can open this accounts without worrying penalties arising due to low balance.

Minimum balance to maintain for cheque account is Rs. 500/- and cheque facility can be taken in an existing account also. This is lower than banks which have a minimum of Rs 1000/- for Public Sector Banks & Rs 5000 or more for Private Sector Banks.

No need to pay yearly charges or hidden fees.

You can avail ATM facility. All city major post offices have the ATM machines and in future Post office Department is focusing on opening more ATMs. The Rupay card can be used at other banks ATMs too subject to usage limits.

SMS Alert is available. This can be set while opening the account for all debits, credits, and banking transactions.

No charges for deposit/withdrawal and ATM transactions (any number of deposit and withdrawal in Post office ATM). Deposit and withdrawal can be done in any 25,000 branches.

Centralized banking system hence you can use this account to open SIPs and give standing instructions for monthly debits like utilities etc..

Deposits and withdrawals can be done through any electronic mode in CBS Post offices. Inter Post office transactions can be done between CBS post offices.

For opening and closing other post office accounts like RD/MIS-1,2,3-TD/KVP/5-TD/SSA/PPF/NSC,  post office SB account will be very helpful. The interest or maturity can be transferred to SB account and can be reinvested.

Internet banking and mobile banking implemented. Much more friendly environment and easy accessibility than other banks. Working all Saturdays.

Nomination facility is available at the time of opening and also after the opening of the account.

The account can be transferred from one post office to another. Only one account can be opened in one post office.

The account can be opened in the name of the minor and a minor of 10 years and above age can open and operate the account. Minor after attaining majority has to apply for conversion of the account in his name.

A joint account can be opened by two or three adults. A single account can be converted into Joint and Vice Versa.

At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.

Opening a Post Office Savings Bank Account is very simple

• Procure a form from the post office or online.
• Submit the duly filled and signed form along with the required KYC documents and a photograph.
• Pay the amount you would like to deposit subject to a minimum of Rs.20.
• Your deposit will be opened for you.
• For senior citizens, there are separate forms available.

Normal KYC is applicable:

Generally, to open a savings account at the post office, you need to submit the following:

• ID Proof such as Electoral Photo Identity card, Aadhaar or the letter issued by the Unique Identification Authority of India (UIDAI), Ration Card with photograph, Passport, Driving License, Photo Identity Card issued by recognized, University/ Education Board/ /College/School, Identity card from Central/State Government or PSU.
• Address Proof such as Bank or Post Office Passbook/Statement with current address Passport, Ration Card with current Address, Electricity Bill, Telephone Bill of not more than three months old, Salary Slip of reputed Employer with current address, Aadhaar or the letter issued by the Unique Identification Authority of India (UIDAI).
• One recent Passport Size Photographs are to be given. In the case of Joint Account, a photograph of all joint holders should be given.

Department of Post is now a getting professional and it is on the same track what has happened with State Bank of India and other PSUs. It is really going to give a tough competition ahead as its manpower goes young and it installs technology.

Hey, what do you think, is Post Office Savings Bank Account is beneficial as it is reinventing itself?

Share your views in the comments section below.

Share the article if you liked it and want to help others in your network. We get benefitted too when you share and talk about us.