How to Reactivate Your Dormant Post Office Savings Account

Post office savings accounts offer a secure and convenient solution for individuals seeking to save money while earning interest, without the worry of excessive fees or minimum balance requirements. However, it’s important to understand the concept of dormant or silent accounts in the post office.

What is a Silent Account in the Post Office? A post office account is considered silent or dormant if there is no activity, such as deposits or withdrawals, for a continuous period of three financial years.

Reviving a Silent Account: To revive a silent account, individuals can submit an application along with updated KYC documents and the passbook to the concerned post office.

Key Features of Post Office Savings Account:

• Minimum opening amount: Rs 500/-
• Interest rate (as of November 30, 2023): 4.0% per annum for individual/joint accounts

Who Can Open a Post Office Savings Account? Post office savings accounts can be opened by:

• Single adults
• Two adults (Joint A or Joint B)
• A guardian on behalf of a minor
• A guardian on behalf of a person of unsound mind
• Minors above 10 years in their own name

Deposit and Withdrawal Guidelines:

• All deposits and withdrawals are to be made in whole rupees.
• Minimum deposit amount: Rs. 500 (subsequent deposits not less than Rs. 10)
• Minimum withdrawal amount: Rs. 50
• No maximum deposit limit
• No withdrawals that reduce the balance below Rs. 500; otherwise, a Rs. 50 Account Maintenance Fee is deducted at the end of the financial year.

Interest Rules:

• Interest is calculated based on the minimum balance between the 10th of the month and the end of the month, credited in whole rupees.
• No interest is allowed if the balance falls below Rs. 500 between the 10th and the last day of the month.
• Interest is credited at the end of each financial year, following the Ministry of Finance’s prescribed interest rate.
• Upon closure, interest is paid up to the preceding month in which the account is closed.

Tax Rules:

• Under Section 80TTA of the Income Tax Act, interest earned up to Rs. 10,000 in a financial year from all savings bank accounts is exempted from taxable income