Post office scheme: Know the minimum balance needed in savings account, interest rate, deposit, withdrawal limits, other details you cannot miss
Post office scheme savings account minimum balance: Did you know that a savings bank account at the post office actually earns you a slightly better return than big commercial banks? Here's all you need to know about the minimum balance and other important details about this post office account.
Post office scheme: Did you know that a post office savings account offers a slightly better return than top commercial banks? A Post Office Savings Account, part of the small savings scheme portfolio, offers an interest rate of four per cent on deposits kept singly or jointly, according to the India Post website — indiapost.gov.in.
The post office savings account has no upper limit for deposits, according to India Post — which runs more than 1,55,000 branches across the country.
Post office savings account: Minimum balance
One can set up a savings account at the post office with a minimum deposit of Rs 500, according to the India Post website.
Is there an upper limit applicable to the post office account?
No.
Post office account: Deposit and withdrawal limits
While the minimum deposit amount for setting up the account is Rs 500, subsequent deposits need to be in multiples of Rs 10, according to the post office website.
Is there a minimum amount applicable to withdrawals?
Yes, the minimum withdrawal amount is Rs 50.
Is there any upper limit for deposits?
No, there is no maximum deposit limit in place.
Post office savings account: Is there a minimum balance limit in place? Can you take your balance below Rs 500?
Yes, the account holder has to ensure a minimum balance of Rs 500, which means additional withdrawal requests are rejected.
Failure to maintain the Rs 500 minimum balance at the end of a financial year attracts an account maintenance fee of Rs 50. The account is closed automatically once the balance is nil.
Post office savings account: How is the interest on deposits calculated and when is it paid?
According to the India Post website, the interest applicable to deposit in the post office savings account is calculated every month, and credit to the account at the end of the financial year.
But there's a catch!
Failure to maintain the minimum balance in the account between 10th of a month and the end of the month renders the account ineligible to receive interest for that particular month.
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