Post Office Saving Scheme: Rate of interest, minimum balance, eligibility; all you need to know
Post Office Saving Scheme: The coronavirus crisis has once again underlined the importance of saving and investing at the right time. With people getting salary cuts, their investments have come handy in meeting immediate money requirements. If you haven’t been investing, this is when you could start with Post Office savings scheme emerging as the safest option due to the fixed interest rate.
Post Offices offer a variety of small saving schemes. These popular schemes are Post Office Savings Account, Public Provident Fund (PPF), Tax-Saving Deposit Schemes, National Saving Certificate (NSC), Sukanya Samriddhi Yojana (SSY), Senior Citizen Saving Scheme (SCSS).
Post Office Saving Scheme: Rate of interest
Interest of 4.0 percent per annum on individual / joint accounts is given on Post Office Savings Account. Interest earned is Tax Free up to Rs 10,000 per financial year.
Post Office Saving Scheme: Who can open account?
The Post Office Savings Account can be opened by cash only. Account may be opened by the following
A single adult
Joint Account (Maximum 2 adults)
Minor above 10 years of age
A guardian on behalf of a minor/Person of unsound mind
Post Office Saving Scheme: Minimum balance
You must make sure that the minimum balance to be maintained in an account is Rs 500. However, you don’t maintain the balance of Rs 500, a maintenance fee of Rs 100 shall be deducted you’re your account on the last working day of each financial year and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account shall stand automatically closed.