India Post currently offers interest at the rate of 4 per cent on deposit in the Post Office Savings Account at designated post office branches. The interest rates applicable to small savings schemes such as the Post Office Savings Account are currently reviewed by the Ministry of Finance on a quarterly basis. For the quarter ending March 31 - the fourth quarter of the current financial year, the finance ministry last month retained the interest rates at existing levels. The Post Office Savings Account is part of the nine government-run small savings schemes.
Here are five key things to know about the Post Office Savings Account, which is one of the nine small savings schemes offered at designated post offices in the country:
Interest Rate
For the fourth quarter of current financial year, deposit in the Post Office Savings Account fetches interest at the rate of 4 per cent per annum.
Minimum Investment For Opening Account
For opening a Post Office Savings Account, one needs to invest a minimum of Rs 500, according to the India Post website - indiapost.gov.in.
Minimum Balance
The minimum amount required to be maintained is Rs 500 with the cheque book facility and Rs 50 without it. The account can be opened by cash only, according to the India Post website.
Minimum Transactions
The account holder needs to make at least one financial transaction (deposit or withdrawal) in three financial years to ensure operability.
Income Tax
The interest earned against the deposit is tax-free up to Rs 10,000 per financial year.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
