New Delhi: India Post, the government-run postal services system, offers the facility of savings account in order to cater the unserved people in rural areas, students, and low-income groups. According to India Post, the post office savings account can be opened by cash only and the account holders are required to maintain a minimum balance of Rs 50 in the non-cheque facility savings account. As per the standards across the banking system, India Post offers an interest rate of 4 per cent per annum to all the individual, as well as, joint account holders.
Surprisingly, people can open a savings account with India Post by depositing a minimum of Rs 20. The persons who want to avail the cheque facility on the savings account are required to deposit Rs 500 at the time of opening a savings account and have to maintain a minimum balance of Rs 500 in the savings account. The cheque facility can also be taken in an existing savings account with Post Office. The deposits and withdrawals can be done through any electronic mode in CBS Post offices. India Post also provides the facility of ATM deposits and withdrawals for all the savings account holders.Read more ↓
India Post savings account maintained by a single account holder can be converted into joint account holder type and joint account holders can convert the savings account in the single ownership. The joint savings account can be opened by two or three adults at a time. Minors are also allowed to open and operate a savings account with India Post after attaining the age of 10 years, while, the parents or legal guardians can open a savings account with India Post in the name of minor before the age of 10 years. However, minors after attaining majority have to apply for conversion of the account in their name.
The nominations facility is available at the time of opening and also after opening of the account. India Post allows only one savings account in one post office, the savings account can be transferred from one post office to another. According to India Post, the interest earned on the savings account is tax-free up to Rs 10,000 per year from the financial year. An account holder is required to perform at least one transaction of deposit or withdrawal in three financial years in order to keep the savings account active.