Post Office Savings Accounts are the oldest but most trusted and favored means to save money. This savings scheme is offered to all citizens of India by the Department of Posts, backed by RBI and the Ministry of Finance of the Central government. Currently, there are more than 200 million post office savings accounts in the country functioning from more than 1 lakh post offices nationwide.
Types of Post Office Savings Accounts
These are numerous post office savings policies available to the Indian mass:
- Saving Account Schemes (SAS)
- Fixed Deposit Schemes (FDS)
- Recurring Deposit Schemes (RDS)
- Monthly Income Schemes (MIS)
- Public Provident Fund Schemes (PPF)
- National Savings Certificate (NSC)
Post Office Saving Account - Features & Benefits
- The Reserve Bank of India, who controls the interest rates on savings deposits, has escalated the interest on post office savings scheme from 3.5% to 4% per annum
- At least INR 20 is needed to open an account.
- Accounts can be opened by cash payment only.
- A minimum balance of INR 50 is mandatory for a post office savings account with a non-cheque facility.
- A customer can avail a cheque facility if the account has an initial deposit of at least INR 500 and henceforth maintain this balance every month.
- A cheque facility can be requested with a prevailing account as well.
- The interest from post office savings cannot be taxed up to INR 10,000 yearly.
- It offers a nomination feature. Nominees can be assigned to accounts at the time of opening an account or after starting the account.
- Although the account can be transferred from one post office to another, a customer is allowed to have a single account in one post office.
- Accounts can be opened in the name of minors.
- Joint account provision is also available.
- A minimum of one deposit or withdrawal of funds in three financial years is mandatory to keep the account active.
- A single savings account can be converted to a joint account at any time.
- A minor account can be converted into a normal account once the account holder comes of age.
- Fund transfers can be done through any electronic mode in Core Banking Solution Post offices.
- Inter post office deposits and withdrawals can be done between all CBS-enabled post offices.
- Savings Account users of CBS Post offices can get debit cards by agreeing to keep a preset minimum balance on the day of card issuance.