Post Office vs SBI Savings Account: Want to earn more money? Then do this

SBI or State Bank of India has been slashing SBI savings account interest rate but bank account holders are still persisting with the largest commercial bank of India. However, for the information of such SBI savings bank account holders, money deposited in post office scheme is more profitable. In fact, in post office savings account, they will have not only a fully government-backed institution, they will also get 1 per cent extra returns as well. This may not look much, but over the long term, it can add up to a pretty pile especially after compounding works its magic.

According to the official website of SBI — onlinesbi.com or sbi.co.in — SBI savings account interest rate is 3 per cent while on post office savings account, interest rate offered is 4 per cent! 

Speaking on SBI vs post office saving schemes; SEBI registered tax and investment expert Jitendra Solanki said, "SBI or any other bank is run by the RBI guidelines. Like any other bank, SBI too is in the lending business and they feel the danger of (non performing asset (NPA) or bad loans. But, in the case of post office, it is a directly Government of India (GoI) run non-commercial entity. So it can't default, which means your money deposited in post office saving account is safer there." 

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Solanki said that if you don't want a cheque book facility in post office savings account, you can open your PO savings account with Rs 20 only. However, if you want cheque book facility in your PO Savings Account, then it will require a minimum of Rs 500. Like any of the Indian commercial banks, Post Office Savings Account holders are also eligible for income tax exemption on up to Rs 10,000 interest in a financial year. 

Highlighting the features of Post Office Savings Account, Manikaran Singhal, SEBI registered tax and investment expert said, "For Post Office Savings Account without cheque book facility, minimum money required to open an account is Rs 20 but one needs to keep a minimum balance of Rs 50 in post office account without cheque book." 

Whether ATM or debit card is available to Post Office account holders, Singhal said, "For those account holders who have maintained the prescribed minimum balance on the day of issuance of the debit card, CBS Post Offices can grant ATM/Debit cards."  If you shift your residence or are not happy with the services of the post office branch or for any other reason, you can shift your Post Office Savings Account to a branch of your choice. Only one account can be opened in one post office.