Post Office Saving Account

Post Office Saving Account – Benefits and Rate of Interest. Check Rate of Interest of “Post Office Saving Account“. In this article we provide complete details for Post Office Saving Account Scheme like – Benefits of Post Office Saving Account, Rate of Interest in Post Office Saving Account Scheme.

Account can be opened by cash only
Minimum balance to be maintained in a non-Cheque facility account is INR 50/-
Cheque facility available if an account is opened with INR 500/- and for this purpose minimum balance of INR 500/-in an account is to be maintained
Cheque facility can be taken in an existing account also
Interest earned is Tax Free up to INR 10,000/- per year from financial year 2012-13
Nomination facility is available at the time of opening and also after opening of account
Account can be transferred from one post office to another
One account can be opened in one post office
Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account
Joint account can be opened by two or three adults
At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active
Single account can be converted into Joint and Vice Versa
Minor after attaining majority has to apply for conversion of the account in his name
Deposits and withdrawals can be done through any electronic mode in CBS Post offices.
ATM facility is available

Minor after attaining majority has to apply for conversion of the account in his name.

Deposits and withdrawals can be done through any electronic mode in CBS Post offices.

*Inter Post office transactions can be done between CBS post offices.

* ATM/Debit Cards can be issued to Savings Account holders( having prescribed minimum balance on the day of issue of card) of CBS Post offices.

Rate of Interest of Post Office Saving Account

Rate of interest	4% per annum
Minimum Amount for Opening	INR 500/-
Interest earned is Tax Free	up to INR 10,000/- per year from financial year 2012-13
Cheque facility available if an account is opened with	INR 500/-
For Cheque facility minimum balance in an account is to be maintained	INR 500/-
Minimum balance to be maintained in a non-cheque facility account	INR 50/-

Interest will be calculated on the basis of the minimum balance between 10th of the month and end of the month and allowed in whole rupees only
No interest will be allowed in a month if the balance between the 10th and last day of the month falls below Rs. 500
Interest shall be credited to an account at the end of each Financial Year at the interest rate prescribed by the Ministry of Finance
At the time of closure of an account, interest will be paid up to the preceding month in which the account is closed
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

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