Want To Open A Savings Account With Post Office? Here's All You Need To Know
India Post, under the Department of Posts, offers a variety of banking and remittance services, besides delivering mails. Among the nine savings schemes that India Post provides, regular savings account offers an interest rate of 4 per cent per annum, according to India Post's official website - indiapost.gov.in. The interest earned on deposit is tax-free up to Rs 10,000 per year. Only one savings account can be opened in one post office. However, account can be transferred from one post office to another, according to India Post, which has a network of more than 1.5 lakh post offices.
Here are key things to know about Post office savings account:
1. A post office savings account can be opened by cash only. The minimum amount for opening of a savings account with post office is Rs 20.
2. A cheque facility is available if the account is opened with Rs 500 and for this purpose, maintenance of Rs 500 as minimum balance is required.
3. The minimum balance that is required to be maintained in an account without the cheque facility is Rs 50.
4. A post office savings account can also be opened in the name of a minor, meanwhile a minor of 10 years and above can also open and operate the account. After attaining majority, the minor has to apply for conversion of the account to his or her name.
5. A savings account can also be opened jointly by two or three adults, according to India Post.
6. At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active
7. A single post office savings account can be converted into a joint account, and vice versa.
8. Nomination facility is available at the time of opening and also after opening of post office savings account.
9. Deposits and withdrawals can be done through any electronic mode in post offices offering core banking service.
10. An ATM facility is also available, according to India Post. Here are the various charges of Post office's ATM cards as stated on India Post's website - indiapost.gov.in:
| India Post (post office) ATM transaction limits/charges | |
|---|---|
| Daily ATM cash withdrawal limit | Rs 25,000 |
| Cash withdrawal limit per transaction | Rs 10,000 |
| Charges for transactions done at DOP ATMs | Free (Both Financial & Non Financial) with a limit of 5 Financial transactions per day |
| Permissible free transactions at other Bank ATMs (per month) |
Metro Cities - 3 free transactions (Both Financial & Non Financial) Non Metro Cities - 5 free transactions (Both Financial & Non Financial) |
| Charges after exceeding permissible free transaction limit at other Bank ATMs | Financial & Non Financial Transactions - Rs 20 + Applicable GST |
(As mentioned on India Post's official website)
Post office also offers the option of opening fixed deposit account, senior citizen savings scheme (SCSS) account, recurring deposit account, among others.
