Post Office Savings Account is similar to a bank savings account. It offers many facilities. Post Office schemes are a means of safe investment and guaranteed returns. People of all age/income groups can invest in the schemes available for savings and investment. You can also open a savings account in it. Any adult or minor person can open this account. There is no limit on depositing money in it and you also get tax exemption up to Rs 10,000 on it. You get 4 percent annual interest on this account. Compared to any bank account, you have to pay much less charge on the facilities of Post Office Savings Account. It is a government bank, compared to other private banks, the risk of money sinking in a post-office savings bank account is very low or negligible.
Eligibility to open an account
- To open an account, a minimum amount of Rs 500 is required. This amount will be deposited in your bank account.
- An adult man of 18 years of age can open his account very easily.
- Only two adults can join a joint account.
- If the child is less than 10 years of age, the account can be opened on behalf of his/her guardian.
- If the child is above 10 years of age, he can open his account in his own name.
- To get a duplicate passbook issued, you have to pay Rs 50.
- For issuing passbook in case of loss or damage of certificate, Rs. 10 has to be paid for each registration.
What are the facilities available on post office account?
- Cheque Book
- ATM card
- Ebanking/Mobile Banking
- Aadhaar Linking
- Atal Pension Yojana
- Prime Minister’s Security Insurance Scheme
- Prime Minister’s Life Jyoti Insurance Scheme
Documents required to open an account
- Account opening form
- KYC Form
- PAN Card
- Passport size photo
- Mobile Number
- Aadhaar Card/Passport/Driving License/Voter Card/MGNREGA Job Card/Letter issued by National Population Register
Things related to interest rate
- Post Office Saving Bank Account gives the account holder 4% of the amount as annual return.
- Interest will be calculated based on the minimum balance available between 10th of the month and end of the month and will be charged in whole rupees only.
- No interest will be paid in any month if the balance is less than Rs 500 between the 10th and the last day of the month.
- Interest will be credited to the account at the end of each financial year at the rate of interest determined by the Ministry of Finance.
- At the time of closing the account, interest will be paid till the previous month.
- Under Section 80TTA of the Income Tax Act, all savings bank accounts earning interest up to Rs 10,000 per annum will not require the account holder to pay tax.
Matter related to account fines
- There should be a minimum balance of Rs 500 in your Post Office Savings Account. If the amount goes below this limit and remains below this limit at the end of the financial year, a maintenance fee of Rs 50 will be deducted. If there is no money left in your account, it will be automatically cancelled.
- To get a duplicate passbook issued, you have to pay Rs 50.
- To get the account statement or deposit receipt issued, Rs 20-20 have to be paid.
- For issuing passbook in case of loss or damage of certificate, Rs. 10 has to be paid for each registration.
- It costs Rs 100 each for account transfer and account pledge.
- It costs Rs 50 to change or cancel the name of the nominee.
- You have to pay a charge of Rs 100 for misuse of cheque.
- In a year, you can use 10 leaves of cheque book without any charge, and after that, a charge of Rs 2 is levied on each leaf.
How to open a savings account in post office
- You can get the savings account opening form from your nearest post office, or if you do not want to get the form from the post office, you can download it online and get a hard copy printed.
- After taking a print out of the form, you must provide all the information asked for in it. It is necessary to fill in the information in the sections which have a star mark.
- Note that while filling the form, you must provide the nomination details. It is necessary to name at least 1 nominee. If you want, you can add 4 nominees and divide their shares as well. After your death, the bank will distribute all the amount to them according to their shares.
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- After filling the form, go to your nearest post office with PAN card, Aadhar card and other supporting documents and submit the form.
- Your account can be opened within 2 working days. However, in some cases this time may be longer.
Asked about the post office
How much money can we keep in post office savings account?
The minimum investment that can be made in this scheme is Rs 1000 and the maximum is Rs 1,50,000 in a year. After opening the account, you will have to deposit the minimum amount every year for 15 years.
How many transactions can be done in a day in a savings account?
According to financial experts, the total amount deposited in a savings account in a financial year should not exceed Rs 10 lakh. If it exceeds this limit, then information about it will have to be given to the Income Tax Department. At the same time, according to Section 269ST of the Income Tax Act, the account holder can transact Rs 2 lakh in a day.
Is it safe to deposit money in post office?
Security is paramount and both options are considered safe. Post office FDs are backed by the Government of India, providing an additional layer of security. Bank FDs, especially from reputed and well-established banks, also offer high security. Tax benefits can increase the attractiveness of investing.
Which is the best FD scheme in post office?
To make FD of money, you can invest in time deposit. In this, you will get interest ranging from 6.9 percent to 7.5 percent. In this, you can open an account with just Rs 1000. At the same time, there is no limit on the maximum amount of money to be invested.