Post Office Savings Account: Rate of interest, minimum balance and all you need to know
The Post Office Savings Account can be opened by cash only.
New Delhi: Post Offices offers a variety of small saving schemes. These some very popular schemes are Post Office Savings Account, Public Provident Fund (PPF), Tax-Saving Deposit Schemes, National Saving Certificate (NSC), Sukanya Samriddhi Yojana (SSY), Senior Citizen Saving Scheme (SCSS).
Falling under the EEE category, these schemes also provide for income tax exemption on investment, earnings on interest rate and earnings on the maturity amount.
Here are some details of the Post Office Savings Account that you want to know
Who can open Post Office Savings Account?
The Post Office Savings Account can be opened by cash only. Account may be opened by the following
(i) a single adult
(ii) Joint Account (Maximum 2 adults)
(iii) Minor above 10 years of age
(iv) A guardian on behalf of a minor/Person of unsound mind
Rate of interest on Post Office Savings Account
Interest of 4.0 percent per annum on individual / joint accounts is given on Post Office Savings Account. Interest earned is Tax Free up to Rs 10,000 per financial year.
You must make sure that the minimum balance to be maintained in an account is Rs 500. However, you don’t maintain the balance of Rs 500, a maintenance fee of Rs 100 shall be deducted you’re your account on the last working day of each financial year and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account shall stand automatically closed.