Everything You Must Know About Savings Accounts at the Post Office
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The Post Office Savings Account scheme was initiated with a focus on the rural population who have minimal access to banks and banking facilities. As post offices are established extensively at every remote location in India, these offices are used as banking portals. With more than 25,000 branches in cities and towns, post offices are found within a radius of every 5-10 Kms. Through the post office savings account scheme, post offices function as banks benefiting the rural population, while the urban population can also avail this facility.
India Post Savings Account Features
The India Post savings account scheme offers a wide range of features that can be availed by the people who are looking for a better and hassle-free banking experience. Some of the features are listed below:
Easy Account Opening
The Post Office Savings Bank Account (POSB) can be opened with a minimum balance of Rs.50 only. This account is transparent and issue-free as there are no penalties. One can always open an account with the minimum balance and also use it as a savings account for personal use. Minimum balance for maintaining a cheque account is Rs. 500 and cheque facility can be taken in an existing account also. This is lower than the Public Sector and Private Sector Banks which mandates a minimum balance of Rs.1000 to Rs.5000 or more.
ATM Facilities
Post office savings account holders can avail the ATM facility that comes as an add-on to the account. The India Post ATM’s have been opened nationwide for facilitating the account holders.
SMS Alerts
Account holders can avail SMS alerts for his/her bank account for easy banking. The details on transaction and banking updates are sent through SMS to the registered mobile number.
Minimal Charges
There are no charges for the transactions made through or from the POSB account. Deposits can be done through any branches in India without any charges.
Interest Rates
The rate of interest provided on post office savings accounts is 4% and subject to change from time to time. In case of savings for a girl child, parents can open a Sukanya Samriddhi Yojana account in a Post Office, which would provide about 8.5% interest per annum.
Opening a Post Office Savings Account
Post office savings accounts can be opened by adults, minors over the age of ten years, a guardian on behalf of an adult or a group of adults. Post office savings accounts cannot be opened by companies or businesses for transacting business.
Following are the steps to open an account under the Post Office Savings Account:
- Procure a form from the post office or online.
- Submit the duly filled and signed form along with the required KYC documents and a photograph.
- Pay the amount you would like to deposit subject to a minimum of Rs.20.
- Your deposit will be opened for you.
- For senior citizens, there are separate forms available.
To open a savings account at the post office, you need to submit the following:
- ID Proofs like Aadhar Card, Voter ID, Driving License, Ration Card etc.
- Address proofs like Electricity Bill, Ration Card, Bank Passbook, Telephone bill and Ration Card.
- Passport Size Photographs.
Conclusion
The minimum balance to be maintained in a savings account is Rs 500. If this 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 financial year and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account stands automatically closed.
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