This scheme helps individuals, house-wives, minors and others in inculcating a habit of thrift in themselves.
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||Account can be opened with a minimum amount of &8377; 20/-. However, a minimum balance of ₹ 50/- in an account without cheque book facility.
₹ 500/- in case of account with cheque book facility.
|Cheque book Facility||Application for availing the facility of Cheque System be submitted on Form SB/CQE-4 and requisition for fresh Cheque Book for Savings Account on Form SB/CQE-4A.|
|Interest Rate||4.00 per cent per annum w.e.f. 1st December 2011.|
|Interest Taxability||Interest upto ₹ 10,000/- for individuals & HUFs is exempt from income tax w.e.f 1st April 2012 ( for Assessment Year 2013-14).|
Application for Nomination or Cancellation or variation of Nomination may be submitted on Form SB-55.
|Transferability||Transferable from one office to another.|
|Tax benefits||Not available under Section 80C.|
|Taxability of Interest||Interest upto ₹ 10,000/- for individuals & HUFs is exempt from income tax w.e.f 1st April 2012 ( for Assessment Year 2013-14) under section 80TTA.
With effect from 1st April 2018 (AY 2019-20) Senior Citizens (i.e. Residents aged 60 years or above) are eligible for exemption of interest income from Bank / Post Office deposits (Saving accounts / Time deposits / RD accounts) upto ₹ 50,000/- under Section 80TTB. (They are, however, not eligible for rebate under section 80TTA.)
|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.
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