Post Office Savings Account – Interest Rate / Calculator / Tax Benefit / ATM Card

Dated: March 20, 2018 | Updated On: April 15, 2018 | Category: Central Government, Pradhan Mantri Yojana
Beneficiary of Scheme:

Just like regular savings account, India post office also provides the facility of secure Post Office Savings Account. This account also offers full or partial liquidation of funds at short period of notice if needed as specified by central government. This saving account has guaranteed returns and provide risk free regular income with interest rate of 4% per annum and also provide atm card facility. Post Office Savings Calculator can tell the interest earned and people can make regular post office account balance enquiry.

These savings account provides tax benefit on Interest earned up to Rs. 10,000. This post office saving scheme also resolve query of how to transfer money from bank account to post office account. Finance Ministry has given its nod to link PO Savings Account with IPPB (full fledged digital banking) which enables a person to do NEFT / RTGS / online money transfer to any bank account. This facility will start from May 2018 – Read more. Senior Citizens and women living in rural and semi-rural areas mostly invest in this savings scheme as the minimum savings account opening balance is just Rs. 20. For details, visit indiapost.gov.in

People can check other schemes as well before opening savings account in post office. Other post office schemes are – Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana (girls), National Savings Certificate (NSC), Recurring Deposit – RD Account, Senior Citizen Saving Scheme (SCSS), Time Deposit Account (TD), Monthly Income Scheme (MIS) – check nsc vs ppf vs kvp vs ssy vs scss vs rd vs mis vs td vs post office savings account. People can Compare All Post Office Schemes 2018 before making investment.

Post Office Savings Account Opening – Procedure and Documents

People can open this type of savings account with minimum account balance of only Rs. 20 (in cash only) at any post office. Moreover, to maintain a non-cheque facility account, the maintaining balance of savings account is only Rs. 50 only. Any individual account holder can deposit maximum Rs. 1 lakh in this account while maximum amount is Rs. 2 lakh for joint account holders.

The most striking features of Post Office Savings Account is that there is no lock-in / maturity period. In addition to this, people can also opt for opening savings account with Rs. 500 to avail cheque and ATM facility.

Procedure for Opening Savings Account in Post Office
It is a very simple process to open a new saving account in any post office branch:-

  1. Candidates can purchase savings account application form any post office or can download it online.
  2. Fill the Savings Account Application Form and submit the form along with KYC documents and recent photograph.
  3. Then subscribers will have to make payment equals to the amount they want to deposit (minimum Rs. 20). After payment the account will open.
  4. Furthermore, there are separate forms for senior citizens to avail this scheme benefits.

List of Documents
Candidates must submit the following documents along with the completed application form to open their new savings account:-

  1. ID Proof – Electoral Photo Identity card (Voter Card), Aadhaar Card, Ration Card, Passport, Driving License, Photo Identity Card from School / University, PSU, Identity card issued by Central / State Government.
  2. Address Proof – Bank or Post Office Passbook,Passport, Ration Card, Electricity Bill, Telephone Bill, Salary Slip, Aadhaar Card.
  3. 1 Recent passport Size Photograph. In case of Joint Account, photographs of all joint account holders.

Post Office Savings Account Interest Rate vs Other Schemes

All the subscribers can check the Post Office Interest Rates Table for January 2018 to March 2018 before opening of India Post Office Saving Account. Compare PPF vs NSC vs KVP vs SCSS vs SSY vs MIS vs TD vs RD vs Savings Account.
Post Office Interest Rates Table 2018

Post Office Savings Scheme Interest Rate
Public Provident Fund (PPF) 7.6% compounded yearly
Senior Citizen Savings Scheme (SCSS) 8.3% p.a from 31 March / 30 Sept / 31 December
Kisan Vikas Patra (KVP) 7.3% compounded yearly
Sukanya Samriddhi Yojana (SSY) 8.1% p.a compounded annually
Post Office Monthly Income Scheme (MIS) 7.3% per year payable monthly
National Savings Certificate (NSC) 7.6% compounded p.a but payable at maturity
Post Office Savings Bank Account 4% p.a
Time Deposit Account (TD) 6.6% to 7.4% p.a calculated quarterly
Post Office Recurring Deposit Account (RD) 6.9% p.a compounded quarterly

Eligibility for Post Office New Savings Account & Withdrawal

The candidates must fulfill the following eligibility criteria to open savings account in post office:-

  1. Any Individual Adult.
  2. Minors above the age of 10 years can apply.
  3. Any guardian can open this account on the behalf of a minor.
  4. Any Person with unsound mind is also permissible to open his savings account.
  5. Moreover, there is also a facility to open joint account by 2 or 3 individuals having equal share.

In this Post Office Savings Scheme – group accounts, institutional accounts, security deposit accounts and Official capacity accounts are not allowed.

Post Office Savings Account Withdrawal – There is no lock in or maturity period in this savings scheme, so any individual can withdraw his money anytime. However, the person has to maintain minimum balance of Rs. 50 (for non-cheque facility account) and Rs. 500 (for cheque facility account).

Benefits of Post Office Savings Account

All the subscribers can avail various benefits of this type of saving account like Cheque Facility, ATM / Debit Card:-
Cheque Facility – Cheque book is available at the time of opening of account. For this candidates have to make an initial deposit of Rs. 500. Moreover, all the existing account holders can also avail the cheque book facility. Hence, they have to maintain a minimum balance of Rs. 500 in their account and make a request for check book issuance.

Post Office ATM Card / Debit Card – All those subscribers maintaining the minimum balance in their saving account are entitled to get Post Office ATM Card through CBS Post Offices.

Minor Accounts – Minors below 10 years can also open their Post Office Saving Account in their name. However, the rights to operate the account still remain available to the parents. Minors with 10 years or above age can operate their account on their own.

Portability – People can transfer their savings account from one branch to another in case of change in address or some other reason. Moreover if people wants to know how to transfer money from bank account to post office account, then they can get assistance at post office Branch.

Nomination – People can choose their nominee at the time of opening of their saving account in post office. Moreover, existing account holders can also choose their nominee after the opening of account.

Joint Holdings – Under Joint Account facility, 2 or 3 adults can open an account together. Moreover, individuals can also convert their single account to joint account and vice versa.

Tax Exemptions – The interest upto Rs. 10,000 of Post Office Savings Account is exempted from tax under 80L of IT Act.

Electronic Facilities – Individuals can make savings account withdrawal through electronic mode in CS=BS Post offices.

Inactivity Period – All the subscribers needs to make only 1 transaction in 3 years to keep their account alive. If there is not a single transaction in the previous 3 years, only then the account becomes inactive.

Post Office Savings Account Features – Highlights at a Glance

The important features and highlights of Post Office Saving Account Scheme are as follows:-

Post Office Savings Account Interest Rate Min. Initial Deposit / Maintaining Balance (with or without cheque book)
4% p.a (individual as well as joint account) Minimum Initial Deposit is Rs. 20 and Maintainance Balance without cheque book is Rs. 50 while it is Rs. 500 for cheque book enabled accounts.
Post Office Savings Accounts Highlights
  • Individual can open this savings account through making initial deposit in cash only.
  • In Non Cheque Facility, maintaining balance is Rs. 50.
  • Cheque Facility is applicable only when the account is opened with Rs. 500. So subscribers will have to maintain minimum balance of Rs. 500.
  • In addition to this, all the account holders can avail this cheque facility in existing accounts also.
  • People can determine their interest per annum through use of Post Office Savings Calculator. All the interest earned up to Rs. 10,000 is tax free from FY 2012-13.
  • All the account holders can easily make nomination while opening of account or after opening savings account.
  • Even these saving account are transferable from 1 post office to other.
  • However, any individual can open only one account in single post office.
  • This Savings account can be opened in the name of minor. Moreover, minor above 10 years of age have the right to operate their own account.
  • 2 or 3 adults together can open a Joint Account. For this, all the account holders needs to submit their recent photographs.
  • To keep savings account active, it is necessary to make at-least 1 transaction in 3 financial years.
  • Any individual account holder can convert his / her account to Joint account.
  • After attaining the age of 10 years, minor have to convert this savings account in their name.
  • People can perform electronic deposits and withdrawals through CBS Post offices. Moreover, candidates can make post office account balance enquiry at the post offices.
  • People can also avail ATM facility in this type of account.

References

— For more details, visit the official website indiapost.gov.in

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