New Delhi. Post office savings account is becoming a reliable option for savings these days. While banks are offering low interest, the post office offers affordable charges and more facilities with 4% interest. The biggest feature of Post Office Savings Account is its very low minimum balance. While many banks demand a minimum of Rs 1,000 to open a savings account, an account can be opened in the post office with just Rs 500. This is especially beneficial for those who find it difficult to maintain a large balance regularly. Consumers living in rural areas and small towns can also easily start their savings. The aim of this account is to provide safe, simple and low-cost banking facilities to the common people.
Attractive interest rate of 4 percent more than banks
The second major feature of Post Office Savings Account is its attractive interest rate. At present the post office is giving 4 percent annual interest, which is much more than most banks. If we look at the interest rates of big banks of India, SBI and PNB give interest between 2.70 percent, Bank of India 2.90 percent and HDFC and ICICI between 3 percent to 3.50 percent. In such a situation, 4 percent return of post office becomes a better option for those making small savings. The special thing is that the interest is deposited directly into the account, due to which your savings keep increasing continuously.
ATM, check book and online services also available
Many people think that post office account is limited only to deposits and withdrawals, but now it is not so. This account is available like normal banking facilities. Account holders are provided the facilities of chequebook, ATM card, e-banking and mobile banking. Aadhaar linking facility is also available which makes transactions simple and secure. Due to digital facilities, post office account has now become a strong option not only for rural but also urban customers.
Benefits in government schemes and taxes also
The biggest advantage of having a post office savings account is direct access to government schemes. This account provides the facility to connect to many government schemes like Atal Pension Yojana, PM Suraksha Bima Yojana and PM Jeevan Jyoti Bima Yojana. Apart from this, under Section 80TTA of the Income Tax Act, there is no tax on interest received in savings account up to Rs 10,000. This tax benefit provides additional relief to people having post office accounts.
Low charges and easy account terms
The charges associated with Post Office Savings Account are also quite low. If the balance at the end of the year is less than Rs 500, then only Rs 50 is charged. A charge of Rs 50 is charged for duplicate passbook, Rs 20 for account statement and Rs 100 for transfer or pledging. The special thing is that every year 10 checks are available for free, after that only Rs 2 has to be paid per cheque. Account opening is also easy. Any adult, two people together, and minors above 10 years of age can also open an account in their own name.
Reliable option for safe savings
Overall, Post Office Savings Account is a great option for those looking for high interest, low charges and a safe way to save. Government trust, digital facilities and easy rules make this account a better option than banks. People with limited income, senior citizens, housewives and youth – every section can avail the benefits of this account. If you also want to increase your savings in a safe and stable manner, then Post Office Savings Account can prove to be a sensible and reliable option for you.
