Want to get the ultimate dope on the Post Office Savings Account? This article is all you need!
Did you know that India Post is not just into delivering mail? It also offers a variety of financial services in its Department of Posts avatar, one of the most popular choices being the Post Office Savings Account. Piqued your interest, did we? Read on to know why India Post’s convenient financial facility is rocking the scene today!
How popular is it?
Well, currently, there are about 37 crore individuals who maintain a Post Office Savings Account.
What makes it popular?
Ah, we thought you’d never ask. Here’s a list of reasons why a Post Office Savings Account is almost a financial celebrity.
Tax-friendly interest
This account offers a 4% interest rate per annum. What’s more? The interest amount is tax-free up to Rs. 10,000.
Additional Reading: Are Your Investments Tax Efficient?
Manageable minimum balance
You need just Rs. 50 if you’re opting for a non-cheque facility account. For one that comes with a cheque-book facility, the minimum balance is Rs. 500.
Easy to open up
To open your account, you can visit your friendly neighbourhood post office and ask for a savings account opening form. The same is also available for download on the India Post website. You’ll need to submit the completed and signed form with your KYC documents and a couple of recently taken passport photographs.
Low Opening Balance Requirement
All you need to kickstart your own Post Office Savings Account is Rs. 20. Keep in mind that this account can only be opened by cash. Your maximum initial deposit limit is Rs. 1,00,000 for a single account and Rs. 2,00,000 for a joint account
Nomination
Yes, you can choose a nominee either at the time of opening your Post Office Savings account or after you’ve opened it.
Minors are welcome
You can open an account under a minor’s name. Also, minors 10 years and above can not only open this account but also use it.
Additional Reading: The Ultimate Financial Planning Guide
Easy to convert
Opened a joint account but now want to turn it into a single account? No problemo! You can switch whenever you like.
Additional Reading: List Of Saving Schemes That Are Worth Investing In
ATM friendly
These savings accounts support ATM facility; an obvious expectation but nevertheless, handy!
Supports Digital Banking
Here’s good news not only for the existing patrons of the Post Office Savings Account but also for future aspirants; the Government has just launched the internet banking facility for Post Office Savings Accounts.
Portable
Let’s say you open an account and six months down the line, you’re not happy with the services provided at your branch. You always have the option to shift your account to any other branch. The only rule to remember here is that you can only open one account in one post office.
Laid-back on activity
A Post Office Savings Account is deemed active as long as you managed to make one transaction, either a deposit or a withdrawal, in three financial years.
Additional Reading: Are You Saving Enough For Retirement? Find Out.
Now that we’ve understood why Post Office Savings Accounts are popular, let’s see the different saving schemes available.
- Saving Account Schemes (SAS)
- Recurring Deposit Schemes (RDS)
- Fixed Deposit Schemes (FDS)
- Public Provident Fund Schemes (PPF)
- National Savings Certificate (NSC)
- Monthly Income Schemes (MIS)
Now, we’re sure some of you would have been curious when you read about minor being able to open a Savings Account with the Post Office, so here’s a list of all individuals who are eligible to get started:
- Adults
- Minors (minimum age of 10 years)
- Guardian on a minor’s behalf
- Individual of unsound mind
- 2-3 adult individuals (for a joint account)
All clear about this super-convenient saving avenue? Click here to read FAQs about it!
Has all this talk about saving money got you thinking about opening up a Savings Account right away? Well, what are you waiting for?