If you are looking for a financial institution where you can open a saving bank account with minimum balance and on return want to get high rate of interest then Indian Post Saving Bank Account is the best option for you. Where every public sector bank in india are charging around 3-4k to open a new bank account and only offers rate of interest of 2.30% on deposit whereas post office allows Account to be opened with just Rs 500 and offer rate of 5 % p.a rate of interest, which is almost double to what public sector banks are offering. Post office saving account are mostly ideal for middle class income holders who are looking for a institutions that helps them to save their money and also safeguard their money. Let’s learn more about Saving Bank Account Scheme of Indian Post.
Eligibility Criteria to open Saving Bank Account at Indian Post Office
(i) a single adult
(ii) two adults only in form of Joint Account
(iii) a guardian on behalf of a minor
(iv) a guardian on behalf of person declared unsound mind by court
(iv) a minor above 10 years in his own name
How to open Indian Post Saving Bank Account: Here’s the steps to open Bank Account in Indian Post
(i) Visit nearest Post Office and collect Saving Bank Account opening form or simply download form online by clicking here
(ii) Submit the form duly filled along with attaching the KYC documents duly signed and filled at desired Post Office.
(iii) After 3-4 days you will get Account number along with pass book. Thereafter, make first deposit of minimum of Rs 500 to make you Account started.
Terms and Conditions for opening Saving Account at Indian Post
1. Under single Account, only one Account can be opened by an individual.
2. Only one account is accepted in the name of minor/above 10 years of age (self)/person of unsound mind.
3. In case of Joint Account, if a joint holder dies, the surviving holder will be the sole holder, if surviving holder already has single account in his/her name, Joint account have to be closed. Conversion of single to joint account or vice versa is not allowed.
4. Nomination is mandatory at the time of account opening.
5. Minor after attaining majority has to submit fresh account opening form and KYC documents of his/her name at concerned Post Office for conversion of the in his/her name
6. All Deposit must be in whole rupees only.
7. All Withdrawal must be in whole rupees only.
8. Minimum deposit amount in the account at a time is Rs. 500 (not less than 10 rupees)
9. Minimum withdrawal amount should be atleast Rs. 50
10. There is no limit on the maximum amount deposited into the account
11. Account holder would not be able to withdraw from his account if the account balance reaches Rs. 500
12. In case if the account holder doesn’t make the balance equivalent to Rs. 500 then a fine of Rs.100 would be deducted as Account Maintenance Fee and if account balance became ZERO the account will be closed automatically.
Interest Norms of Saving Deposit Scheme of Indian Post
(i) Interest is calculated on the minimum balance between the 10th day and the last day of the month. Interest is calculated on whole rupees only.
(ii) No interest will be paid to the customer if the balance falls below Rs.500 between the 10th day and last day of month
(iii) Interest will be credited in account at financial year end and at the interest rate defined by the Ministry of Finance.
(iv) In case of account closure the interest will be paid till the preceding month in which the account was closed.
(iv) Interest earned upto 10,000 in a financial year is exempted from taxable income under 80TTA of the Income Tax Act.
(v) If the account holder doesn’t make any transaction, nor deposit nor deposit, within 3 year of account opening , then such account will be deemed as Silent or Dormant.
(vi) If any account becomes dormant for not making any transaction for continuous 3 years, then the customer needs to resubmit fresh KYC documents at the concerned Post Office to reactivate the account.
(vii) In order facility of Banking instruments like Cheque Book, ATM Card, EBanking/Mobile Banking, ebanking/mobile Banking, Aadhar Seeding, Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
