A post office savings account is a type of savings account offered by the post office. These accounts are typically available to individuals and businesses, and they offer a variety of features.
Post office savings accounts are a safe and convenient way to save your money. They are also a good option for people who want to earn interest on their savings without having to worry about high fees or minimum balance requirements.
If you are looking for a safe and convenient way to save your money, a post office savings account can be a good option to consider.
Key Features Of Post Office Savings Account
- Minimum amount for opening of account: Rs 500/- for opening
Post Office Savings Account Interest Rate
- As of November 29, 2023, the interest rate is 4.0% per annum on individual / joint accounts
Who Can Open Post Office Savings Account ?
- A single adult
- Two adults only (Joint A or Joint B)
- A guardian on behalf of minor
- A guardian on behalf of person of unsound mind
- A minor above 10 years in his own name
Deposit and Withdrawal:
All deposits/ withdrawals are to be done in whole rupees only.
- Minimum deposit amount: – Rs. 500 (subsequent deposit not less than 10 rupees)
- Minimum withdrawal amount: – Rs. 50
- Maximum deposit: – No maximum limit
- No withdrawal will be permitted which effect reducing of minimum balance Rs 500
- In case account balance not raised to Rs. 500 at the end of financial year Rs 50 will be deducted as Account Maintenance Fee and if account balance became Nil the account shall stands automatically closed
Interest Rules
- Interest will be calculated on the basis of minimum balance between 10th of the month and end of the month and allowed in whole rupees only
- No interest will be allowed in a month if balance between 10th and last day of the month falls below Rs. 500
- Interest shall be credited in account at the end of each Financial Year at the interest rate prescribed by Ministry of Finance
- At the time of closure of account, interest will be paid up to the preceding month in which account is closed
Tax Rules
Under section 80TTA of the Income Tax Act, from all Savings Bank Accounts, interest up to Rs. 10,000 earned in a financial year is exempted from taxable Income
Additional on-demand facilities available on PO Savings Account
- Cheque book
- ATM Card
- E-banking/mobile banking
- Aadhaar Seeding
- Atal Pension Yojana (APY)
- Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Pradhan Mantri Jeevan Jeevan Jyoti Bima Yojana (PMJJBY)
Things To Note
- Only one account can be opened by an individual as a single account
- Only one account can be opened in the name of minor/above 10 years of age (self)/person of unsound mind
- In case of death of a Joint holder, the surviving holder will be the sole holder, if surviving holder already has single account in his/her name, joint account have to be closed
- Conversion of single to joint account or vice versa is not allowed
- Nomination is mandatory at the time of opening of account
- Minor after attaining majority has to submit fresh account opening form and KYC documents of his/her name at concerned Post Office for conversion of the in his/her name.
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