For the past few years, the interest rates on savings accounts of banks have been decreasing continuously. If you are considering investing in the future, then you can do it with Post Office Savings Account Scheme. You will definitely get good returns in these Post Office Savings Account. Also, the money invested in it is also totally safe.
If the bank defaults, then you get back the amount of only Rs. 5 lakh, but this is not the case in the post office. Separated from this, investment in Post Office Savings Account schemes can be started with a very small amount. SBI’s savings account interest has come down to 2.70%. In such a situation, the savings account of the post office gives some hope. In this, you still get 4% interest. In this article, we are giving all the necessary information about Post Office Savings Account.
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Post Office Savings Account Scheme
A post office savings account is similar to a regular savings bank account. Post Office Savings Account is a deposit scheme supported by the Government of India which is available at post office branches across the country. It provides returns on deposits made by individuals at a fixed rate of interest set up by the Ministry of Finance, Government of India. Presently the interest rate offered on PO Savings Account is 4% per annum which is compounded annually.
If you are considering investing in the coming days, then you can do it in the Post Office Savings Account. You surely get good returns in these schemes. Also, the money invested in it is also totally safe. If the bank defaults, then you get back only five lakh rupees, but this is not the case in the post office. Apart from this, investing in Post Office Savings Account schemes can be begun with a very little amount.
To open a savings account in a post office, it is mandatory to deposit at least Rs 500. There is no maximum deposit limit, but the amount should be in multiples of 10. You should always have a minimum balance of Rs 500 in your account. If the average balance in a year is less than Rs 500, Rs 100 will be deducted as a penalty. The account will be closed automatically when the balance becomes zero (0).
Post Office Savings Account Scheme | Eligibility Criteria
The eligibility criteria prescribed for Post Office Savings Account are as follows:-
- A Post Office Savings Account can be opened by any Indian resident adult.
- A joint account can be opened with a maximum of 2 adults. Joint conversion is not allowed in a single account and vice versa.
- A guardian can open an account on behalf of a minor or a disabled person. In the case of minors, when they attain the age of 18 years, the account has to be converted by submitting their account in the new account opening form.
- A minor above the age of 10 years are also eligible to open an account in his own name.
- A person is allowed to open only one account and a joint account in a post office branch.
Also Read: बालिका समृद्धि योजना
Post Office Savings Account Scheme | Important Document
To open an account, you have to provide KYC documents along with the account opening form. KYC documents are your identity and address proof. You can submit the following documents:-
- Aadhar Card
- Voter card
- PAN number
Who Can Open Post Office Savings Account?
You definitely get good returns in these Post Office Savings Account schemes. Also, the money invested in it is also completely safe. One adult, two adults or guardian on behalf of a minor, guardian on behalf of an individual of weak mind can open a savings account in the post office. Separated from this, a minor above the age of 10 years can even open a savings account in his own name.
Post Office Savings Account Scheme | Interest Rate
Presently, a 4% interest rate is applicable on Post Office Savings Account. It is also worth noting that the interest rate of a post office savings account is higher than the interest rate of any government bank savings account. Interest is calculated on the minimum balance in your account between the 10th of a month and the last date of the month.
But if this minimum balance is less than Rs. 500 then no interest will be available. But, its interest is not credited to your account every month. Rather, the entire interest for the year is deposited in your account at the end of the financial year. On closing the account, interest will be paid only till the last month of account closure.
Post Office Savings Account Scheme | Features
- Deposit:- The minimum deposit amount at the time of account opening is Rs.500. The minimum amount required to deposit in a post office savings account is Rs 500. And there is no upper limit for deposits in the account.
- Minimum Account Balance:- The minimum account balance to be maintained at the end of a financial year is Rs.500. If the balance falls below Rs 500 at the end of the financial year, a maintenance charge of Rs 100 will be deducted from the account. And if the balance becomes zero, the account will be closed automatically.
- Withdrawals:- The minimum withdrawal amount has been fixed at Rs.50. Withdrawals will not be allowed if they reduce the account balance below the minimum balance requirement of Rs.500.
- Nomination Facility:- Nomination facility is available in Post Office Savings Account. Also, it is mandatory for the depositors to add names while opening the account. Nominees are entitled to receive benefits and money on the unfortunate death of the depositor.
- Interest Rate:- The Post Office Savings Account offers a fixed interest rate of 4.0% per annum which is compounded annually. Interest rates are subject to quarterly revisions by the Government of India.
- Transferability:- Accounts can be transferred from one post office branch to another country.
- Tax Benefits:- Interest earned by individuals from savings accounts (including all accounts in banks, post offices) are eligible to claim tax exemption of up to Rs 10,000 in a financial year under section 80TTA of the Income Tax Act, 1961.
- Silent Account:- If any transaction i.e. deposit/withdrawal is not done continuously for 3 financial years, the account will be treated as a silent or dormant account. That silent account can be revived by submitting an application along with required KYC documents and a passbook at the branch.
- E-Banking / Mobile Banking:- E-Banking or Mobile Banking facility can also be used in the post office savings account by submitting the duly filled application form at the branch. These facilities allow you to have online access to various features such as the opening of time deposits/recurring deposits, taking loans against RD or PPF withdrawals, repayment of loans, deposits in various schemes, transaction history and many more.
- Additional Features:- The following facilities can also be availed on Post Office Savings Account:
- Cheque Book
- ATM card
- Banking – Internet and Mobile
- Atal Pension Yojana
- Pradhan Mantri Suraksha Bima Yojana
- Pradhan Mantri Jeevan Jyoti Bima Yojana
Also Read: Monthly Pension Scheme In Post Office
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