People mostly prefer to have a savings account as it becomes easy to deposit to the account. And at the time of needs, the money can be easily withdrawn.
Today the process to open a savings account has become easy when compared to the olden days. Moreover, on the account balance, the account holder earns reasonable interest.
Likewise, it is also convenient to open a Post Office Savings Account.
The account comes along with lucrative interest rates and various other benefits.
The Post Office Savings Account is one deposit scheme that is provided by the India Post throughout the country. This savings account offers an interest rate on the balance in the account.
This scheme is beneficial for any individual investor who is looking forward to earning interest by simply investing a portion of the financial assets. This Post Office Savings Account remains popular amongst the rural part of India. The reach of the India Post is greater compared to any banks. The underprivileged people have easy access to a savings account via the post offices.
The following are the key benefits of opening the account online:
Read More: Post Office Time Desposit Scheme
Who Can Open the this Account?
At the time of opening the Post Office Savings Account, the nomination is a mandate. The following can easily open the account:
It is to be noted that conversion of single to a joint account and vice-versa is not permitted.
All the deposits or withdrawals for the Post Office Savings Account will be only in whole rupees. Take a look below, to understand the deposits and withdrawals:
Minimum Deposit Amount
Rs 500 (The following deposit should not be less than Rs 10)
Maximum Deposit Amount
Minimum Withdrawal Amount
Besides, no withdrawal will be allowed that affects reducing the minimum sum of Rs 500. At the end of the financial year, if the account balance is not raised to the sum of Rs 500 then Rs 100 is going to be deducted as the charge for the maintenance of the account. Also, when the balance in the account is nil thereafter the account will automatically stand closed.
Take a look below to understand the interest rate:
Anyone who wishes to open the Post Office Savings Account needs to follow the below steps:
When in the Post Office Savings Account neither any deposit nor withdrawal takes place for continuous three financial years, the account will be treated dormant or silent.
The revival of such account will be done by simply submitting an application with the KYC documents along with a passbook at the respective post office.
The following are facilities on the Post Office Savings Account that can be availed upon submitting the respective form at the respective post office:
In case there is no transaction for three consecutive financial years then the account is treated as the silent account. Anyone who wishes to revive such a silent account needs to apply for the same.
After the demise of the depositor, the balance in the account will be given to the respective nominee. In case the amount is less than Rs 60,000 and has no nominee then the post office department will pay the amount to the appearing person before the person deceased and who is eligible to receive it.
An application needs to be generated for the opening of the Post Office Savings Account. Fill the application form and attach all the relevant KYC documents and make the deposit to open the account.
Anyone who wishes to open the account needs to submit the listed below documents:
The India Post has recently introduced online banking and a mobile app for the users to access the activities of the account. The individual need to generate a user a user-id and likewise apply for the net banking services, to begin with.
Anyone who wishes to do so can do it by submitting the required application and it will be taken care of.
Not every post office offers such a facility; however, the individual can ask the post office for such an additional facility.
The current interest rate is 4% per annum.
A premature withdrawal can be made as per the wish; however minimum balance of Rs 50 from a generic account and a sum of Rs 500 for the cheque facility needs to be maintained by all the account holders.