Post Office Savings Schemes: Open account with just Rs 500! Get good interest rate, tax exemptions and other benefits
The Centre has kept interest rates of small savings schemes, including Public Provident Fund, Sukanya Samriddhi Yojana (SSY), and other post office schemes unchanged for the sixth quarter in a row for the October-December quarter.
The Ministry of Finance has kept interest rates of small savings schemes, including Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), other post office schemes unchanged for the sixth quarter in a row for the October-December quarter.
To open an account in Small Savings Schemes viz Savings Account (SB), Recurring Deposit (RD), Time Deposit (TD), Monthly Income Scheme (MIS), Senior Citizen Savings Scheme (SCSS)submit Account Opening Form (AOF) duly filled in with KYC documents and deposit slip (SB 103) in desired Post Office.
Interest payable, rates, periodicity, etc are 4.0 per cent per annum on individual/joint accounts. The minimum amount for opening of account and maximum balance that can be retained is Rs 500
Who can open
(i) Single adult
(ii) Two adults only (Joint A or Joint B)
(iii) A guardian on behalf of the minor
(iv) A guardian on behalf of person of unsound mind
(iv) A minor above 10 years in his own name
Only one account can be opened by an individual 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 death of a Joint holder, the surviving holder will be the sole holder, if surviving holder already has a single account in his/her name, the Joint account have to be closed.
Conversion of a single to a joint account or vice versa is not allowed. Nomination is mandatory at the time of opening of account. Minor after attaining majority has to submit fresh account opening form and KYC documents of his/her name at concerned Post Office for conversion of the in his/her name
Deposit and Withdrawal: All deposits/ withdrawals shall be in whole rupees only.
Minimum deposit amount: Rs 500 (subsequent deposit not less than Rs 10)
Minimum withdrawal amount: Rs 50
Maximum deposit: No maximum limit
No withdrawal will be permitted which effect reducing of minimum balance of Rs 500
In case the account balance is not raised to Rs 500 at the end of the financial year, Rs 100 will be deducted as an account maintenance fee and if the account balance became Nil the account shall stand automatically closed.
Interest: (i)Interest will be calculated on the basis of the minimum balance between the 10th of the month and the end of the month and allowed for whole rupees only. (ii)No interest will be allowed in a month if the balance between the 10th and last day of the month falls below Rs 500. (iii) Interest shall be credited in the account at the end of each Financial Year at the interest rate prescribed by the Ministry of Finance. (iv)At the time of closure of the account, interest will be paid up to the preceding month in which the account is closed. (iv)u/s 80TTA of the Income Tax Act, from all Savings Bank Accounts, interest up to Rs 10,000 earned in a Financial Year is exempted from taxable income.
Silent Account: (i)If no deposit/withdrawal takes place in an account during continuous three financial years, the account shall be treated as silent/dormant. (ii)Revival of such account can be done by submitting the application along with fresh KYC documents and passbook at the concerned Post Office.
Additional facilities available on PO savings account: To avail below facilities on your PO Savings Account, download and submit the respective form at concerned Post Office
See Zee Business Live TV Streaming Below:
(i) Cheque book
(ii) ATM Card
(iii) e-banking/mobile banking
(iv) Aadhaar Seeding
(v) Atal Pension Yojana (APY)
(vi) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
(vii) Pradhan Mantri Jeevan Jeevan Jyoti Bima Yojana (PMJJBY)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
01:12 PM IST