A post office savings bank account is a deposit and savings scheme offered by the Indian postal services under the Government of India. Under this scheme, account holders can deposit their savings in their post office savings accounts and earn guaranteed returns on their deposits in the form of interest.
The post office savings account interest is calculated on the basis of the minimum account balance between the 10th of the month and the end of the month. The interest is then credited to the account at the end of each financial year. Currently, the post office savings interest rate is 4% per annum on individual/joint savings accounts.
To open a post office savings account, you must maintain a minimum account balance of ₹500. If you fail to do so, you will be charged a penalty of ₹100 (+GST) at the end of the financial year.
Eligibility To Open A Post Office Savings Account
A single adult, two adults (for a joint post office savings account), a guardian on behalf of a person of unsound mind, a guardian on behalf of a minor, or a minor above 10 years can open a post office savings account.
An individual can open only one account as a single account.
Only one account can be opened in the name of a minor/above 10 years of age (self)/person of unsound mind.
In case of the death of a joint account holder, the surviving holder will be the sole account holder. In case the surviving holder already has a single account in his/her name, the joint post office savings account will be closed.
How To Open A Post Office Savings Account?
Visit your nearest post office branch where you wish to open your post office savings account.
Fill the account opening form and submit it at the post office along with the necessary KYC documents and your passport-size photographs.
Deposit the required payable amount along with the documents.
Your post office savings account will be opened within a week.
Take a look at these 5 lucrative post office investment schemes for beginners.
Disclaimer: This article does not intend to pass on any financial advice and BQ Prime does not endorse any of the schemes mentioned above. Kindly invest at your own discretion.
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