Usually people open savings account in banks, but if you open savings account in post office, you can avail many benefits on that account. In this, you will get all the facilities like a bank savings account and you will also get better interest.
Post Office Savings Account: In today’s time, everyone has a savings account. If you want to take benefit of any government scheme, make payment through UPI or invest in FD etc., it is not possible without a savings account. Usually people open savings account in the bank, but if you open a savings account in the post office, then you can get many benefits on that account. In this, you will get all the facilities like a bank savings account and will also get better interest. Know all the features of Post Office Savings Account.
Account opens with just Rs 500
Whether you open a savings account in a bank or a post office, it is very important to keep a minimum balance in your account at all places. Otherwise you have to pay a penalty. Usually, the minimum balance limit on a regular savings account in banks is at least around 1000, but a post office savings account can be opened for a minimum of 500 rupees and this is its minimum balance limit.
These facilities are also like a bank
Like a bank, you also get many facilities on the post office savings account. On opening an account, you get the facility of checkbook, ATM card, e-banking/mobile banking, Aadhaar linking etc. Apart from this, you can also take advantage of Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana run by the government on this account. Under Section 80TTA of the Income Tax Act, interest up to Rs 10,000 earned in a financial year from all savings bank accounts is exempted from taxable income.
Better interest than banks
Banks give interest from time to time on the amount deposited in the savings account, but this interest is usually around 2.70% to 3.5%. But you get much better interest on the post office savings account than the banks. Here is the details of the interest received on the regular savings account of major banks and post offices-
- Interest rate on Post Office Savings Account: 4.0%
- Interest rate on SBI Savings Account: 2.70%
- Interest rate on PNB Savings Account: 2.70%
- Interest rate on BOI Savings Account: 2.90%
- Interest rate on HDFC Savings Account: 3.00% to 3.50%
- Interest rate on ICICI Savings Account: 3.00% to 3.50%
Who can open an account
Any adult can open an account in a post office. Apart from this, two people can also open their account jointly. If an account is to be opened for a minor, his parents or legal guardians can open the account on his behalf. At the same time, a minor above 10 years of age can open an account in his name. After becoming an adult, the minor has to submit a new account opening form and KYC documents in his name to the concerned post office to get the account transferred in his name.
Charges have to be paid for these
- If the amount in the post office savings account is less than Rs 500 and it remains below this limit by the end of the financial year, then a maintenance fee of Rs 50 is deducted.
- You have to pay Rs 50 to get a duplicate passbook issued.
- You have to pay Rs 20 each for getting an account statement or deposit receipt issued.
- 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 can use 10 leaves of the cheque book in a year without any charge, and after that a charge of Rs 2 is levied on every leaf.
