Everything You Need to Know About Post Office Savings Accounts
Updated On Feb 08, 2022
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A post office savings account is a deposit system run by the Indian government in which the account holder is entitled to interest at a rate set by the Reserve Bank of India. The postal service has reached every part of the nation, from rural to metropolitan regions, and as a result, a vast number of Indians have access to Post offices.
The majority of individuals choose to have a savings account since it is simple to deposit money and withdraw it when needed. In comparison to the past, the conditions for opening and maintaining a savings account have recently been loosened. In addition, a fair interest rate may be earned on the account balance. To understand and know more about Post Office Savings Account, read on.
What Are The Benefits Of A Post Office Savings Account?
There are several advantages to having a savings account at the post office. Following are few of those examples -
- You may easily open an account at a Post Office or a Sub Post Office near you.
- To register an account and make a minimum deposit, all you need is Rs. 20.
- You have the option of withdrawing all or portion of your savings.
- Your post office account can be transferred from one post office to another in any place.
- You will be provided a passbook as well as an ATM/Debit card so that you may access your money at any time and from any location.
1. CHEQUE FACILITY - To use this service from the post office, fill out a form with all of your account information and send it to your local branch. The cheque book will be delivered to your address after verification. In your cheque book account, you should have a minimum balance of Rs. 500.
2. ELECTRONIC FACILITY - The post office can provide you with a debit or ATM card as part of this service.
3. JOINT HOLDINGS - This section allows two or three adults to create a post office account together. They can open as many accounts as they like, but they can only have one account per post office. Under this arrangement, the deposit has no maximum restriction. To access their accounts, the joint account holders will receive separate account passbooks and ATM cards.
4. MINOR ACCOUNTS - A juvenile who has reached the age of ten years old can open and operate a post office account. He or she can open a single post office account. He or she will be requested to provide all of the data and supporting papers when creating the account. A guardian can establish and administer an account on behalf of a minor under the age of ten.
5. NOMINATION - You must provide the Nominee's information as well as his address when creating your account. You have the option of nominating three people. They will be entitled to your money after your death.
6. ATM OR DEBIT CARDS - You will receive a Debit or ATM card after opening a savings account at any post office. You may use this card to withdraw money from any post office ATM. In a post office savings account, free ATM use is restricted to five times. The account has a daily cash withdrawal limit of Rs 25,000 from the post office and Rs 10,000 from any post office ATM.
7. PORTABILITY - Your post office account can be transferred from one location to another. You may use this service to easily move any schemes you've completed at a post office to another location. You must complete a transfer form, provide all KYC information, and surrender your passbook to the appropriate branch. The authorised individual will provide you with all of the documentation you'll need to open/continue the scheme at another post office.
The post office banking service provides a variety of safe investing options. All of these projects are guaranteed by a sovereign guarantee, implying that they are government-sponsored. As a result, these programs are safer investment alternatives for people than company shares and so many fixed-income options.
You may also like to read - What Is Investment And What Does It Indicate? Know About Several Investment Options
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.