India Post, under the Department of Posts, offers a variety of banking services, besides delivering mails. As part of its small savings schemes portfolio, it offers regular savings account. India Post pays interest at the rate of 4 per cent per annum on deposit in its savings account in the current quarter, according to India Post’s official website – indiapost.gov.in, which has a network of more than 1.5 lakh post offices. The minimum amount for opening of a savings account with post office is Rs. 20.
Given below are key things to know about post office regular savings account:
How to open post office regular savings account
A post office savings account can be opened by cash only. A cheque facility is available if the account is opened with Rs. 500 and for this purpose, maintenance of Rs. 500 as minimum balance is required, according to the India Post.
A savings account can also be opened jointly by two or three adults. However, only one savings account can be opened in one post office at a time. A post office savings account can also be opened in the name of a minor, whereas a minor of 10 years and above in age can both open and operate the account. After attaining majority, the minor has to apply for conversion of the account to his or her name.
The minimum balance that is required to be maintained in an account without the cheque facility is Rs. 50, according to India Post.
The interest earned on deposit is tax-free up to Rs. 10,000 per year in case of a regular savings account, according to India Post.
A nomination facility is available at the time of opening and also after opening of account. A savings account can be transferred from one post office to another. A single account can be converted into a joint account, and vice versa.
At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active. Deposits and withdrawals can be done through any electronic mode in core banking post offices. An ATM facility is also available, according to India Post