Post Office Savings Account
This scheme helps individuals, house-wives, minors and others in inculcating a habit of thrift in themselves.
Changes in the scheme:
- The interest payable on balance at the credit of an account is 4.00% per annum w.e.f. 01.12.2011
Salient features of Post Offices Savings accounts
| Item | Description |
|---|---|
| Eligibility |
Any resident adult individual singly or jointly with one or two other adults.
Minor's accounts can be opened through guardians. A minor, who has attained 10 years age, can also open the account. |
| Minimum amount | Rs. 50/- in case of account without cheque book facility.
Rs. 500/- in case of account with cheque book facility. |
| Maximum Amount | Maximum Rs. 1,00,000/- for an individual account, Rs. 2,00,000/- for joint account. No limit on group/institutional or official capacity accounts. |
| Interest Rate | 3.5 per cent per annum upto 30th November 2011. 4.00 per cent per annum w.e.f. 1st December 2011. |
| Interest Taxability | Interest upto Rs. 10,000/- for indiviuals & HUFs is exempt from income tax w.e.f 1st April 2012 ( for Assessment Year 2013-14). |
| Nomination facility | Available |
| Transferability | Transferable from one office to another. |
| Tax benefits | Not available |
| Interest Taxability | The interest earned is exempt under section 10(15)(i). |
| Other features | Only one single and one joint account can be opened at one post office.
No interest is payable for the balance less than Rs.50 in any particular month and for the balance more than Rs.1,00,000/- in a single account and Rs.200,000 in a joint account in a year. If the depositor dies and there is without a nomination in force at the time of his death and the amount due is not exceeding Sixty Thousand Rupees, the Department of Post Office may pay the same to a person appearing before him, who is entitled to receive it or to administer the estate of the deceased. |