Post Office Savings Scheme: How to open account with minimum deposit of Rs 500

Post Office Savings Account: Post Office Savings Accounts is one of the most popular savings accounts in India. The account holder has to maintain a minimum balance of Rs. 500, while there is no maximum limit. One can open only one account as a single account or a joint account (two adults only). A guardian can also open an account for a minor. 

Post Office Savings Account: Interest Rate 

Whatever amount is deposited in the savings account, interest is given by the banks from time to time, but this interest usually remains around 2.70 per cent to 3 per cent. However, a Post Office Savings Account offers much better interest than banks. 
 
Interest available on regular savings accounts of major banks and post offices are as follows:
 
Interest on Post Office Savings Account: 4.0%
Interest on SBI Savings Account: 2.70%
Interest on PNB Savings Account: 2.70%
Interest on BOI Savings Account: 2.90%
Interest on BOB Savings Account: 2.75%
Interest on HDFC Savings Account: 3.00% to 3.50%
Interest on ICICI Savings Account: 3.00% to 3.50%
 

Post Office Savings Scheme: Minimum deposit of Rs 500
 

Whether you open a savings account in a bank or a post office, it is very important to maintain a minimum balance in your account. Otherwise, you have to pay a penalty. Generally, the minimum balance limit on regular savings accounts in banks is at least Rs 1000, but a post office savings account can be opened for a minimum amount of Rs 500.
 
 

Post Office Savings Scheme: Bank-like facilities
 

In a Post Office Savings Scheme account, one gets the facilities of a cheque book, ATM card, e-banking/mobile banking, Aadhaar linking, etc. Apart from this, one can also avail the benefits of the Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana, and Pradhan Mantri Jeevan Jyoti Bima Yojana in this account.
 

Post Office Savings Scheme: Who can open an account?
 

One can open a single or a joint account. Parents or legal guardians can open an account for minors on their behalf. The minor's age in that condition should be over 10 years.
 
After attaining adulthood, the minor has to submit the new account opening form and KYC documents in their name to the concerned post office to get the account transferred to their name.
 
 

Post Office Savings Scheme: What are the charges?
 

• If the amount in a Post Office Savings Account is below the minimum limit of Rs 500 at the end of a financial year, a maintenance fee of Rs 50 is deducted.
• To get a duplicate passbook issued, you have to pay Rs 50.
• For issuing account statements or deposit receipts, Rs 20 each has to be paid.
• It costs Rs 100 each for account transfers and account pledges. 
• It costs Rs 50 to change or cancel the name of the nominee.
• In a year, you can use 10 chequebook leaves without any charge, and after that, there is a charge of Rs 2 per year.