New Delhi: India Post or Postal Department runs postal services in the country, India Post also offers the option of opening a savings account. The post office currently pays 4 percent interest per year on individual / joint savings accounts.
Eligibility
A single adult or two adults only (joint A or joint B), can open a parent post office savings account on behalf of a minor. Only one account can be opened by a person as a single account. Post Office: This is the special post office scheme that saves income tax, know interest
Deposit / withdrawal limit
The minimum balance in a savings account is 500. If the balance of Rs 500 is not maintained at the end of the financial year, a maintenance fee of Rs 100 is deducted from the account on the last working day of each finance. If the balance in the account becomes zero after deducting the year and account maintenance fee, the account is automatically closed. The minimum withdrawal amount is Rs 50, while in the case of Post Office Savings Account there is no maximum limit on withdrawals and deposits.
Calculation of interest
Interest in a post office savings account is calculated on the basis of the minimum balance between the 10th month of the month and the end of the month. Interest is credited to the account at the end of each financial year at the interest rate fixed by the Ministry of Finance.
At the time of closing the account, interest will be paid till the previous month in which the account is closed. As per Section 80TTA of the Income Tax (IT) Act from all savings bank accounts, interest earned up to Rs 10,000 in a financial year is exempt from taxable income.
How to open account
One can get the application form for the savings account of the post office by visiting the nearest post offices or India Post portal. After filling the application form completely, customers can visit the nearest post office branch and submit the filled form with necessary KYC documents and passport size photographs. After opening an account, customers can access it online through Post Office Net Banking.
