Post Office Savings Account

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Post Office Savings Account is similar in many ways to a regular savings account. It is considered to be a highly secure instrument to deposit funds into and offers the option of full or partial liquidation of funds at very short notice in case the need arises. These accounts generally offer a guaranteed return on investment and are ideal for senior citizens and people who are looking to earn a regular income without exposure to risk

Post Office savings accounts are also best suited for those individuals living in rural and semi-rural areas, which have limited exposure to banking. Due to the large network of post offices in India, the government introduced the concept of opening savings accounts through post offices, especially since the country-wide reach of post offices is far greater than banks.

How to open Post Office Savings Account

A Post Office savings account can be opened at any post office with a minimum balance of Rs 20. Single account holders can deposit a maximum of Rs one lakh while joint account holders can deposit a maximum of Rs two lakhs. One of the main features of a Post Office savings account is that there is no lock-in or maturity period. Opening an account of this kind is relatively hassle-free, since one can walk into any post office, complete the formalities with the clerk, and open an account immediately.

Salient features including Tax Rebate

·         Account can be opened by cash only
·         Minimum balance to be maintained in a non-Cheque facility account is INR 50/-
·         Cheque facility available if an account is opened with INR 500/- and for this purpose minimum balance of INR 500/-in an account is to be maintained
·         ​Cheque facility can be taken in an existing account also
·         Interest earned is Tax Free up to INR 10,000/- per year from financial year 2012-13
·         Nomination facility is available at the time of opening and also after opening of account
·         Account can be transferred from one post office to another
·         One account can be opened in one post office
·         Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account
·         Joint account can be opened by two or three adults
·         At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active
·         Single account can be converted into Joint and Vice Versa
·         Minor after attaining majority has to apply for conversion of the account in his name
·         Deposits and withdrawals can be done through any electronic mode in CBS Post offices.
·         ATM facility is available





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