The interest rates offered on Post Office Savings Account are reviewed quarterly by the government. Anyone with valid KYC documents can open a savings account at the nearest post office with an initial deposit of Rs 500.
New Delhi. If you want to earn some extra profit while saving your hard earned money, then the best option for you may be to open a savings account and deposit the money in the post office. You can get double benefit of opening a savings account in the post office. First, you will be eligible for tax exemption on interest up to Rs 3,500 in a financial year to higher interest than banks and second to the depositor. In case of joint account, this exemption is up to Rs.7,000.
Higher interest on post office savings account
The interest paid on bank savings accounts has been declining for some time now. The interest rate offered by State Bank of India, the largest public sector bank in India, has fallen to 2.7 percent annually. Whereas post office savings accounts are still giving 4 per cent returns. This is the reason why post office small savings plan is one of the most preferred options among retail investors. It offers higher interest rates than other schemes. Interest rates on small savings schemes including post office savings accounts are reviewed on a quarterly basis. For the July to September quarter, the government has not changed the interest rate on small savings schemes.
Post office savings account can be opened in just this amount
Post Office Savings Account can be opened by depositing a minimum of Rs.500. Interest on Post Office Savings Account is calculated on the minimum balance between the 10th of every month or the last day of the month. 100 is deducted as maintenance charges. If the account balance becomes zero then the account will be closed automatically.
Zero balance account opening facility
The Ministry of Finance had issued a notification on April 9, 2021 regarding the savings bank account in the post office. In which it was told that who can open a savings account on zero balance. In this, any common person who is a registered adult member of any government welfare scheme and in case of a minor by a guardian whose name is registered for any government benefit, they can take advantage of this.
