Post Office Savings Account
Post Office Savings Account is similar to savings account offered by any bank. All features remain same. We can deposit, withdraw money at any time in any post office. Since all post offices in India have now become CBS enabled, we can do transactions in any office. Let us see more details about post office savings account in the form an FAQ so that you can easily grasp the points.
How to open Post Office Savings Account?
- To open a post office saving account you have to fill out the prescribed application form and submit it in any post office.
- Along with the application form you also have to submit a copy of your Identity proof and address proof.
- Self attestation ( put your signature on the copies) is necessary for all the documents you are producing for opening of savings account.
Who can open Post Office Savings Account?
- Any Indian citizen can open a post office savings account. Provided they are not currently residing in any country other than India.
- A saving account can be opened all individuals above 18 years which can be operated by themselves.
- For all the individuals who are below 18 years, the account will be managed by guardians( mother /father or legal guardian)
Who can operate Post office savings account?
- Post office saving account can be operated by 1. Self if the account is a single account, 2. Up to two Account holders if the account is either a Joint A or Joint B account.
- Guardian ( Mother/Father or legal guardian) in case of an account opened in the name of a minor.
What is a Single Account?
- A Single account is one in which there is only one account holder.
What is a Joint 'A' Account?
- A Joint A account is an account in which there are either 2 account holders. But while making a withdrawal, closing of account, to add/remove/change other account holders and change of nomination acquittance of all the account holders is required.
What is a Joint 'B' Account?
- A Joint B account is an account in which there are either 2 account holders. But while making a withdrawal, closing of account, to add/remove/change other account holders and change of nomination acquittance of any one of the account holders is enough.
What is a Minor Account?
- A minor account is one in which the account holder is a minor ( below 18 years old). A minor account is managed by guardian of the minor account holder.
What is nomination?
- A person can be nominated to receive the amount in the account in the event of the death of the account holder/holders. This process is called as nomination.
- Nomination can be given to more than one person per an account.
- Nomination facility is not eligible for minor accounts.
What is the minimum balance to be maintained?
- A post office savings account can be maintained by a minimum balance of only Rs.500/-. If account balance falls short of this amount, a penalty of Rs.100/- will be charged per year.
- For availing cheque facility, the minimum balance to be maintained is Rs.500/-
What is cheque facility?
- Cheque book facility can be availed for post office saving account. A cheque book will be given to the account holder upon request. Cheque book can be availed at the time of opening itself or at a later time by giving an application.
- The cheque book is similar to that of cheque book given in banks. It can be issued to any one and can be paid on clearance.
What other facilities are there?
- All facilities like ATM, Internet Banking, Phone Banking, SMS Alerts etc are available at absolutely free of cost.
- Minimum balance required to be maintained to avail all these facilities is Rs.500/-
What in the rate of interest?
- At present 4% simple interest is being given on all saving accounts. You can also opt out from getting interest.
- Interest earned on deposits upto Rs.100,000/- is exempted from income tax.
- Interest earned above this fold is taxable.
- There is no limit on the amount of deposit.
Can deposits and withdrawals be made at any Post office?
- Yes, deposits and withdrawals can be made in any post office.
- At present a limit of Rs.50000/- is there on all withdrawals made in offices other than where the account stands.
- No such limit exists on deposits.
Can the account be transferred from one office to other?
- Yes the account can be transferred to any office from any office. An application form has to be given to the post master of the office to which you want your account to be transferred.
- If the office is a head post office, the account will be transferred on the same day. Else it may take 2-3 days for transfer of account.
- You are not restricted to make transactions while your account is getting transferred.
How to make deposits and withdrawals?
- Its very simple to make deposits and withdrawals. All you need to do is to fill up the prescribed form.
- For accounts with cheque facility, withdrawal is made using one of those cheque leaves.
How to convert a single account to joint account and vice versa?
- For converting an account from single account to a joint account and vice versa, the first account holder has to give a letter stating the requirement to the post master.
- A new application form has to be filled up and to be given to identify the new person, along with identity and address proofs.
How to close a Post Office savings account?
- To close the account just fill up the account closing form along with the passbook. The account will be closed on the spot and the amount will be paid in cash.
So this is all about a post office savings account. If you have any more doubts about the post office savings account, do comment below. We will be happy to help you.
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