India Post Accounts
As we know, India Post, under the Department of Posts (DoP), offers a host of services. Besides delivering mails, India Post also offers a range of financial and retail services. These include small savings schemes such as PPF Public Provident Fund (PPF) and National Savings Certificate (NSC), bill collection and sale of forms. India Post also offers savings accounts. India Post’s savings accounts – with or without cheque book – are among the most popular of its products, say financial experts. Post office savings accounts are opened by cash only, according to India Post.
But what is the interest rate offered in post office savings accounts? And what is the minimum balance permitted in these accounts? What are the other services offered by it?
Post office savings accounts interest rate
India Post currently offers an interest rate of 4 per cent on individually or jointly-held post office savings accounts, according to its website – indiapost.gov.in. The interest earned is tax-free up to Rs. 10,000 in a financial year.
Post office savings account minimum balance
The minimum balance required in a post office account without cheque book facility is Rs. 50, according to India Post. For savings accounts with cheque book facility, the minimum balance permitted is Rs. 500.
India Post savings accounts come with an ATM facility.
Among other features, post office savings accounts are opened in two modes – with cheque book facility and without cheque book facility. pls put this as first para under this particular sub head
Those holding a post office savings account without the cheque book facility originally also have the option to upgrade their account to subscribe to the facility. India Post – which has a network of over 1.5 lakh post offices – also offers the facility to transfer savings accounts from one post office branch to another, according to its website. However, only one account can be opened by an individual in one post office.
Minimum balance in other post office accounts
Type of account – Minimum balance
SB(Cheque account) – Rs.500/-
SB(non Cheque account) – Rs.50/-
MIS – Rs.1500/-
TD – Rs.200/-
PPF – Rs.500/-
Senior Citizen – Rs.1000/-
Among other popular instruments, India Post offers PPF at a minimum balance of Rs. 500 and Monthly Investment Scheme (MIS) at a minimum balance of Rs. 1,500. For senior citizen savings scheme, the minimum balance required is Rs. 1,000, according to India Post.
Monthly Income Scheme or MIS is a popular investment scheme wherein an individual invests a particular amount and gets an assured monthly income in the form of interest.