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Post Office Account Rtae: Banks’ returns fail in front of this post office scheme, this is how they earn money

If you are looking for better interest rates and facilities in less investment, then Post Office Savings Account can be a good option. It is not only good in terms of savings, but you can earn more interest than the returns you get from a banking company by keeping money in it.

Post Office Savings Account Rate: In today’s time, savings account has become a necessity for every person. From banking services to taking advantage of government schemes, many works remain incomplete without a savings account. If you are looking for better interest rates and facilities in less investment, then post office savings account can be a good option. It is not only good in terms of savings, but you can earn more interest than the return you get from the banking company by keeping money in it. Let’s understand how it works and how much percentage of return is available.

Open an account for Rs 500

Only Rs 500 is required to open a savings account in the post office. It fulfills the minimum balance requirement and avoids penalty. Modern facilities like checkbook, ATM card, e-banking and mobile banking are available with this account. Apart from this, you can also get the benefit of government schemes through Aadhaar linking. 4.0% annual interest is given on post office savings account, which is higher than major banks. This rate is much better than the interest rates offered in public sector and private banks.

Better option than banks

In India, government and private banks have different minimum balance requirements for opening a savings account. To open an account in government banks, 1,000 to 3,000 rupees are required, while in private banks this amount can be from 5,000 to 10,000 rupees. Apart from this, the interest rate in government banks is 2.70% and in private banks it is 3.00% to 3.50%, which is lower than the post office rates.

Exemption from income tax is available

Tax exemption of up to Rs 10,000 is available on the interest earned on the post office savings account under Section 80TTA of the Income Tax Act. Also, since it is run by the government, it is a safe and reliable option.

Who can open an account?

Post office savings account can be opened by any adult person. There is also a facility to open a joint account, in which two persons can share the account. The account of children below 18 years of age can be operated by their parents or guardians. That is, in short, anyone can open an account in it.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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