How to Open Account
The account can be opened at any post office with a minimum balance of Rs. 50. Maximum of Rs. one lakh for single account holder and Rs. two lakhs for joint account holders can be deposited. There is no lock-in or maturity period. The opening of post office savings bank account is very simple compared to Bank SB accounts..
Who can Open Account
Single account can be opened by an adult, a minor with minimum age of ten years, or a guardian on behalf of a minor or a person of unsound mind. Joint account can be opened by two or three adults.
Withdrawl of Money
The amount can be withdrawn anytime subject to keeping a minimum balance of Rs. 50 in simple account and Rs. 500 for cheque facility accounts.
Rate of interest is decided by the Central Government from time to time, present interest rate is 4%.. Interest is calculated on monthly balances and credited annually.
Interest Income up to Rs. 3,500.00 (Singly account) and up to Rs. 7,000.00(Joint Account) exempted from tax as per Article 10(15) of Income Tax Act
Benefit of Large Network
Post offices have the largest service network in India. Reach of post offices is of course greater than banks and this is the reason behind the government introducing something like saving accounts through post offices. They can take the benefit of having saving accounts right to the people who need them the most. If one is living in a remote corner, sometimes it is better to have a savings account in a post office rather than a bank.
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