Opening of Account:
A depositor may operate more than one account under these rules subject to the condition that deposits in all accounts taken together shall not exceed Rs. 3 lakh (Rupees two lakh and four thousand till March 31, 2000) in single account and Rs. 6 lakh (Rupees four lakh and eight thousand till March 31, 2000) in joint account.

Deposits and Withdrawals:
i.There shall be only one deposit in the account of Rs 1,000 or multiples thereof, not exceeding Rs 3 lakh in single account and Rs 6 lakh in case of joint account.
ii. Except as provided under the heading premature withdrawal, no withdrawal shall be permitted under these rules before the expiry of a period of six years from the date of opening of an account.

Mode of Deposit:
i.The deposit under these rules may be made
a. in cash, or
b. by cheque or demand draft drawn in favour of depositor or the post-master of the post office and endorsed in favour of the post-master
ii. Where deposit is made by cheque or demand draft, the date of deposit under these rules shall be the date of encashment of the cheque or the demand draft

Nomination:
i.The depositor may, at the time of opening the account under these rules, nominate a person or persons who, in the event of death of the depositor, shall become entitled to payment due on the account.
ii. If such nomination is not made at the time of opening the account, it may be made by the depositor at any time after the opening the account, but before its closure by means of an application, accompanied by the pass book, to the post-master of the post office.

Interest on Deposit:
i.The deposit made under these rules shall bear interest at the rate of 9.5 per cent, per annum w.e.f. 15th January, 2000. Previously, the interest rate was 11%.
ii. The interest shall be payable monthly to the depositor on completion of a month from the date of deposit.
iii. If so authorised, interest payable, monthly, shall be deposited by the post office in the savings account of the depositor held at the post office where the deposit is held, subject to the condition that by so depositing the interest, the maximum limit on balances in savings account is not exceeded.
iv. If the interest payable every month is not claimed by a depositor, such interest will not earn any additional interest.

Closure of Account:
i.The deposit made at the time of opening of account shall be paid by the post office at which the account stands, to the depositor on, or after, the expiry of 6 years from the date of opening the account, alongwith bonus equal to 10 per cent of the amount deposited, on production of the pass book accompanied by a written application.
ii. In case of death of a depositor before maturity, account may be closed and deposit refunded along with interest upto the month preceding the month in which refund is made.

Premature Closure of Account:
An account-holder may be permitted to withdraw the deposit and close the account any time after expiry of a period of one year from the date of opening such account, subject to the condition that an amount equal to 5 per cent of the deposit shall be deducted and the remainder paid to him. Provided that no such deduction shall be made if the account is closed after expiry of 3 years from the date of opening of such account.

Pass Book:
i.On opening an account, the depositor shall be given a pass book bearing the date of opening of account, the number of his account, his name and address and the amount deposited, and also the monthly interest payable along with the date on which the deposit will be due for final payment.
ii. The pass book shall be presented to the post office at the time of collecting interest every month and also at the time of closing the account.
iii. The depositor availing facility of interest in his savings account shall present the pass book to the post office atleast once in six months for completion of entries.