How To Open Post Office Savings Account: Interest Rates, Tax Benefits, Other Details
India Post, under the Department of Posts, provides a variety of banking services, besides delivering mails. It offers a regular savings account, as part of its small savings schemes portfolio.
India Post pays interest at the rate of 4 per cent per annum on deposit in its savings account, according to India Post’s website – indiapost.gov.in.
The interest earned on deposit is tax-free up to Rs 10,000 per year from financial year 2012-13, according to India Post, which has a network of more than 1.5 lakh post offices. The minimum amount for opening of a savings account with post office is Rs 20.
Here are 10 things to know about the post office savings account:
1. A post office savings account can be opened by cash only. A cheque facility is available if the account is opened with Rs 500 and for this purpose, maintenance of a Rs 500 as minimum balance is required, according to the India Post website.
2. The minimum balance that is required to be maintained in an account without the cheque facility is Rs 50.
3. A nomination facility is available at the time of opening and also after opening of account.
4. A savings account can be transferred from one post office to another
5. Only one savings account can be opened in one post office at a time.
6. A post office savings account can also be opened in the name of a minor, whereas a minor of 10 years and above in age can both open and operate the account. After attaining majority, the minor has to apply for conversion of the account to his or her name.
7. A savings account can also be opened jointly by two or three adults, according to India Post.
8. A Single account can be converted into a joint account, and vice versa.
9. At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.
10. Deposits and withdrawals can be done through any electronic mode in core banking post offices. An ATM facility is also available, according to India Post.